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    Accounting Questions

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    2) INSTRUCTIONS: Solve the following problems and record the answers in the Answers column.

    0. If total direct labor costs are $100,000 for 25,000 units of production, the per-unit direct labor cost is
    1-3. Fixed costs for Flag Stamp Co. are $250,000. The selling price per unit is $20.00, and variable costs are $15.00.
    1. The break-even sales (units) are
    2. The sales units required to yield a target operating income of $350,000 would be
    3. The contribution margin ratio is
    4. If sales are $560,500, the unit selling price is $20, and the sales at the break-even point are $426,000, the margin of safety as a percent of sales is
    5-6. The contribution margin for Williamson Co. is $160,000, and the operating income is $20,000.
    5. Williamson's operating leverage is
    6. If Williamson's sales increase by 15%, operating income will
    7-8. The data for the highest and lowest levels of a firm's production are
    as follows:

    Units Produced Total Costs
    Highest level 11,000 $87,000
    Lowest level 4,000 38,000

    7. The variable cost per unit is
    8. The estimated total cost to produce 8,000 units is
    9-10. A firm manufactures two products, X and Y. The fixed costs are
    $28,000, and the sales mix is 75% X and 25% Y. The unit selling price
    and the unit variable cost for each product are as follows:

    Unit Selling Price Unit Variable Cost
    X $10 $ 4
    Y 30 22

    9. The break-even sales (units) for the above sales mix
    10. The number of units of Y that would be sold at the break-even point is

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    2) INSTRUCTIONS: Solve the following problems and record the answers in the Answers column.
    For
    Answers Scoring
    0. If total direct labor costs are $100,000 for 25,000 units of production, the per-unit direct labor cost is
    $4.00 per unit
    0. ____
    1-3. Fixed costs for Flag Stamp Co. are $250,000. The selling price per unit is $20.00, and variable costs are $15.00.
    1. The break-even sales (units) are 50,000 units 1. ____
    2. The sales units required to yield a target operating income of $350,000 would be 120,000 units
    2. ____
    3. The contribution margin ratio is 0.25 3. ____
    4. If sales are $560,500, the unit selling price is $20, and the sales at ...

    Solution Summary

    This solution is comprised of solution to calculate the per-unit direct labor cost, break-even sales (units), sales units required to yield a target operating income of $350,000, contribution margin ratio, margin of safety as a percent of sales, Williamson's operating leverage, variable cost per unit, estimated total cost to produce 8,000 units, the break-even sales (units) for the above sales mix, and the number of units of Y that would be sold at the break-even point.

    $2.19

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