BUSA-202 Extra Credit Practice Quiz For Exam 2 (2015)
Question 1 0 out of 0.2 points
In its first year of business, Soles for Souls, Inc., produced 5,000 shoes and sold 4,000 during the year. Its cost for the year included:
Question 2 0 out of 0.2 points
Use the following information to calculate Honest Tea, Inc.’s, Inventory balance on its December 31 year-end balance sheet. Note: All purchases of inventory are on account.
Cost of Goods Sold during the year $31,000
January 1 Inventory 10,000
Sales during the year 68,000
December 31 Accounts Receivable 22,000
Purchases of Inventory on Account during the year 41,000
December 31 Inventory = $______
Question 3 0 out of 0.2 points
Assume you are a retail store that sells jeans. Identify each of your costs as variable, fixed, or mixed:
Units sold 20 40 80
1. Depreciation Expense per unit $480 $240 $120
2. Total Rent $5,000 $5,000 $5,000
3. Total Cost of Shopping Bags $4 $8 $16
Question 4 0 out of 0.2 points
Total Per unit
Sales revenue (30,000 units) $750,000 25
Variable costs 450,00015
Contribution margin 300,000?
Fixed costs 150,000
Operating income $150,000
What is the company’s breakeven point in sales units?
Question 5 0 out of 0.2 points
Sea the World Cruises sells 4,000 tickets on its deluxe yacht:
Selling price per customer $5,000
Variable cost per customer $1,000
Annual fixed cost $500,000
What is the company’s breakeven point in units, i.e., customers? Round to the nearest whole unit.
Question 6 0 out of 0.2 points
If selling price per unit increases, while variable cost per unit and total fixed costs remain the same, the breakeven point will:
Question 7 0 out of 0.2 points
Bead It, Inc., produces and sells beads by the pound.
Selling price per pound $13
Variable cost per pound $10
Annual fixed costs $200,000
What will the company’s breakeven point in units equal if Bead It were to replace some of its hourly employees with a machine? The labor costs will reduce the cost per pound by $2 but the depreciation on the machine will add $100,000 to the manufacturing costs. Round to the nearest whole pound.
Question 8 0 out of 0.2 points
Vicious Cycle, Inc., produces and sells 2,000 bikes.
Selling price per unit $4,000
Variable cost per unit $800
Annual fixed cost $500,000
What is the company’s contribution margin per unit? (Round to the nearest cent.)
Question 9 0 out of 0.2 points
Planet of the Crepes, Inc., makes and sells crepes. It expects sales to equal $500,000, total variable costs to equal $350,000 and total fixed costs to equal $60,000.What is the contribution margin ratio?
Question 10 0 out of 0.2 points
Wok of Fame, Inc., makes and sells woks at a price of $5.00 per unit. Variable cost is $3.00 per unit. The company’s total fixed costs are $52,500.How much must total sales be if Wok of Fame wants to earn an operating income of $17,500?
Question 11 0 out of 0.2 points
If Curl Up & Dye, Inc., has an operating leverage of 2.5 and its sales decrease by 8%, calculate the percentage change in operating income rounding to the nearest tenth of a percent. Do not include the % or a negative sign in your answer.
Question 12 0 out of 0.2 points
Planet of the Crepes, Inc., is preparing its master budget for its first month of business. It expects to sell 2,000 crepes at $3 per crepes per month. It expects to collect 80% of the sales in the month of the sale and 20% in the following month. Calculate the amount of budgeted sales for its first month.
Question 13 0 out of 0.2 points
Leaning Tower of Pizza, Inc., is preparing its master budget for its first year of business. It expects to sell 6,000 pizzas at $7 per pizza per month. It expects to collect 90% of the sales in the month of the sale and 10% in the following month. Calculate its Accounts Receivable balance at the end of its first year.
Question 14 0 out of 0.2 points
You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500 of equipment. You plan to work 260 hours in your first month and 80 hours in your second month of business. You charge your customers $15 per hour. Your anticipated costs include:
Advertising $6 per month
Gas $1.60 per hour
Depreciation $25 per month
Assistant’s Wages $8.00 per hour
Miscellaneous Expenses $60 per month
You plan on collecting 90% of your sales in the month you mow the lawn and the remainder in the following month. Calculate the Accounts Receivable balance at the end of your first month of business.
Question 15 0 out of 0.2 points
You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500 of equipment. You plan to work 200 hours in your first month and 300 hours in your second month of business. You charge your customers $20 per hour. Your anticipated costs include:
Advertising $20 per month
Gas $1.40 per hour
Depreciation $25 per month
Assistant’s Wages $8.00 per hour
Miscellaneous Expenses $40 per month
You plan on collecting 90% of your sales in the month you mow the lawn and the remainder in the following month. Calculate the amount of Cash Collections in yoursecond month of…
