ACC 350 Topic 6 Exam Quiz With Answers /ACC 350 Topic 6 Exam Quiz With Answers (elaborations) (Complete Answers - score 100%)

1) Five Seasons is a merchandiser of packed foods. The company provides the following information for the year 2015: Sales Revenue $140,000 Cost of Goods Sold $63,000 Operating Expenses $67,500 Net Income $9,500 Number of Units Sold 27,000 How much was the unit cost per unit of product sold? A) $3.14 B) $5.18 C) $2.33 D) $0.82 2) Jezebel Company incurred fixed costs of $300,000. Total costs, both fixed and variable, are $450,000 when 50,000 units are produced. It sold 35,000 units during the year. Calculate the variable cost per unit. A) $9 B) $12 C) $6 D) $3 3) True or False: Purely Pizza Company sells pizzas in two different sizes—medium and large. The number of medium pizzas sold is twice the number of large pizzas sold. The contribution margin of a medium pizza is $10 and the contribution margin of a large pizza is $16. The weighted average contribution margin is $15. Answer is TRUE 4) Jame Company sells glass vases at a wholesale price of $3 per unit. The variable cost of manufacture is $1.75 per unit. The fixed costs are $7,500 per month. Jame sold 5,500 units during this month. Calculate Jame's operating income (loss) for this month. A) $9,000 B) $625 C) ($625) D) ($7,500) 5) Which of the following formulae is the right formula for calculating contribution margin ratio? A) Contribution margin ratio = Contribution margin + Net sales revenue This study source was downloaded by from CourseH on :53:24 GMT -05:00 This study resource was shared via CourseH B) Contribution margin ratio = Contribution margin ÷ Net sales revenue C) Contribution margin ratio = Contribution margin × Net sales revenue D) Contribution margin ratio = Contribution margin - Net sales revenue 6) True or False: The NPV method of evaluating capital investments suggests that a project with positive net cash inflows that exceed the cost of the investment should be accepted. Answer is FALSE 7) A3+ has prepared its 3rd quarter budget and provided the following data: Jul Aug Sep Cash collections $50,000 $40,000 $48,000 Cash payments: Purchases of inventory 31,000 22,000 18,000 Operating expenses 12,000 9,000 11,600 Capital expenditures 13,000 25,000 0 The cash balance on June 30 is projected to be $4,000. The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls. It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 5%. All financing transactions are assumed to take place at the end of the month. The loan balance should be repaid in increments of $5,000 whenever there is surplus cash. How much will the company have to borrow at the end of July? A) $0 B) $5,000 C) $15,000 D) $10,000 8) A summary of significant accounting policies and explanations of specific items on the financial statements will be given in: A) the balance sheet. B) the income statement. C) notes to financial statements. D) the report of independent registered public accounting firm. 9) When the total fixed costs increases, the breakeven point: A) increases. B) decreases. C) decreases proportionately. D) remains the same. 10) The vertical analysis statement of Nobell Inc. is as below: This study source was downloaded by from CourseH on :5