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Jackson Inc. wants target net income of \$30,000 from the sale of its product. If the unit sales price is \$15, unit variable cost is \$9, and total fixed costs are \$90,000, the number of units that must be sold to earn the target net income is a.8,000

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1. Haywood Company sells a single product with a contribution margin of \$5 per unit, fixed costs of \$74,400, and sales for the current year of \$100,000. What is the break-even point?;a. 5,120 units;b. \$25,600;c. 6,200 units;d. 14,880 units;2. Bumpkin Incorporated?s variable costs are 40% of sales. The company is contemplating an advertising campaign that will cost \$20,000. If sales are expected to increase \$60,000, by how much will net income increase?;a. \$24,000;b. \$40,000;c. \$16,000;d. \$ 4,000;3. Jackson Inc. wants target net income of \$30,000 from the sale of its product. If the unit sales price is \$15, unit variable cost is \$9, and total fixed costs are \$90,000, the number of units that must be sold to earn the target net income is;a. 8,000 units.;b. 20,000 units.;c. 16,000 units.;d. 12,000 units.;4. A company's break-even point can be lowered by decreasing;a. the contribution margin ratio.;b. the contribution margin.;c. the selling price.;d. variable costs per unit.;5 Knox has the following total production costs;Total Costs Units;October \$30,000 6,000;July \$12,000 2,000;The total fixed costs are;a. \$18,000;b. \$3,000;c. \$9,000;d. \$6,000;6. Swain Corporation reported the following information for 2013;October November December;Budgeted sales \$230,000 \$220,000 \$270,000;Budgeted purchases \$120,000 \$128,000 \$144,000;? Cost of goods sold is 35% of sales.;? Purchases of merchandise are paid for 40% in the month of acquisition and 60% in the following month.;? Accounts payable is used only for inventory acquisitions.;How much is the budgeted balance for Accounts Payable at October 31, 2013?;a. \$48,000;b. \$72,000;c. \$102,000;d. \$51,200;7. Boyd plans to sell 2,000 units during December, 1,900 in January, and 2,000 during February. The company keeps 15% of the next month?s sales as ending inventory. How many units should be produced during January?;a. 1,915;b. 2,200;c. 1,885;d. Not enough information to determine.;8. Woodford is planning to sell 600 units and produce 700 units in October. Each unit requires one-half hour of direct labor. Employees are paid \$10 per hour. How much is the total amount of budgeted direct labor for October?;a. \$3,000;b. \$48,000;c. \$3,500;d. \$2,400;9. The following credit sales are budgeted by Bruce Co.;January \$175,000;February 165,000;March 180,000;April 185,000;The company's past experience indicates that 70% of the accounts receivable are collected in the month of sale and 30% in the month following the sale. The anticipated cash inflow for the month of April is;a. \$120,250;b. \$175,000;c. \$167,500.;d. \$183,500;10. Inventory accounts for a manufacturer consist of;a. raw materials, work in process, and finished goods.;b. direct labor, work in process, and finished goods.;c. manufacturing overhead, direct materials, and direct labor.;d. work in process, direct labor, and manufacturing overhead.;11. During 2013, Matthew Manufacturing expected total production costs to be \$300,000 of overhead, \$500,000 of materials, and \$200,000 in labor. Matthew applied overhead based on direct labor cost. Actual total production included overhead cost of \$280,000, \$550,000 in materials used, and \$220,000 in labor. All of the goods were completed. What was the cost of goods transferred to Finished Goods Inventory during the year?;a. \$1,100,000;b. \$1,050,000;c. \$1,070,000;d. \$1,000,000;12. Ching Company reported net income of \$20,000 for the year. During the year, inventories decreased by \$3,000, accounts payable decreased by \$4500, depreciation expense was \$5,000 and a loss on disposal of equipment of \$2250 was recorded. Net cash provided by operations using the indirect method was;a. \$19,250;b. \$21,250;c. \$25,750.;d. \$34,750;13. Lucas Lamps has the following information available.;Net Income \$18,000;Average Total Liabilities 35,000;Average Current Liabilities 18,000;Cash Provided by Operations 28,000;Cash Sales 90,000;Capital Expenditures 13,000;Dividends Paid 6,000;What is the current cash debt coverage ratio?;a..51 times;b. 1.56 times;c..80 times;d..833 times

Paper#74068 | Written in 18-Jul-2015

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