Study Guide Accounting Essay Example
SAMPLE FINAL
Student: ___________________________________________________________________________
1. What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point?
A. $31,300
B. $5,300
C. $23,500
D. $(2,500) The West Division of Fitzmaurice Corporation had average operating assets of $450,000 and net operating income of $87,300 in November. The minimum required rate of return for performance evaluation purposes is 18%. 2. What was the West Division's minimum required return in November?
A. $87,300
B. $15,714
C. $96,714
D. $81,000 3. Bonniwell Corporation has two divisions: the Delta Division and the Alpha Division. The Delta Division has sales of $620,000, variable expenses of $359,600, and traceable fixed expenses of $229,200. The Alpha Division has sales of $820,000, variable expenses of $541,200, and traceable fixed expenses of $172,900. The total amount of common fixed expenses not traceable to the individual divisions is $122,000. What is the company's net operating income?
A. $539,200
B. $15,100
C. $137,100
D. $417,200 Kulp Corporation has two major business segments-East and West. In July, the East business segment had sales revenues of $900,000, variable expenses of $441,000, and traceable fixed expenses of $171,000. During the same month, the West business segment had sales revenues of $450,000, variable expenses of $234,000, and traceable fixed expenses of $45,000. The common fixed expenses totaled $321,000 and were allocated as follows: $180,000 to the East business segment and $141,000 to the West business segment. 4. The contribution margin of the West business segment is:
A. $108,000
B. $675,000
C. $288,000
D. $216,000 5. Hobbins Corporation makes three products that use compound W, the current constrained resource. Data concerning those products appear below:
Rank the products in order of their current profitability from most profitable to least
Student: ___________________________________________________________________________
1. What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point?
A. $31,300
B. $5,300
C. $23,500
D. $(2,500) The West Division of Fitzmaurice Corporation had average operating assets of $450,000 and net operating income of $87,300 in November. The minimum required rate of return for performance evaluation purposes is 18%. 2. What was the West Division's minimum required return in November?
A. $87,300
B. $15,714
C. $96,714
D. $81,000 3. Bonniwell Corporation has two divisions: the Delta Division and the Alpha Division. The Delta Division has sales of $620,000, variable expenses of $359,600, and traceable fixed expenses of $229,200. The Alpha Division has sales of $820,000, variable expenses of $541,200, and traceable fixed expenses of $172,900. The total amount of common fixed expenses not traceable to the individual divisions is $122,000. What is the company's net operating income?
A. $539,200
B. $15,100
C. $137,100
D. $417,200 Kulp Corporation has two major business segments-East and West. In July, the East business segment had sales revenues of $900,000, variable expenses of $441,000, and traceable fixed expenses of $171,000. During the same month, the West business segment had sales revenues of $450,000, variable expenses of $234,000, and traceable fixed expenses of $45,000. The common fixed expenses totaled $321,000 and were allocated as follows: $180,000 to the East business segment and $141,000 to the West business segment. 4. The contribution margin of the West business segment is:
A. $108,000
B. $675,000
C. $288,000
D. $216,000 5. Hobbins Corporation makes three products that use compound W, the current constrained resource. Data concerning those products appear below:
Rank the products in order of their current profitability from most profitable to least