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Accounting Questions

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.

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