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Accounting & MIS 212

Exam II

Summer 2003

Instructions:

1. Read each question carefully and answer fully.

2. Other than multiple-choice, problems not supported by relevant and readable computations are subject to point loss. Where appropriate, terms like “unfavorable,” “favorable,” “better off,” “worse off,” etc. must be included with number answers. Dollar amounts should include a dollar sign; unit amount should include an indication of the unit.

3. Budget your time carefully. It is generally better to finish half of each problem than to complete all of half the problems. Students who continue to work on exams after instructed to stop will receive a zero on this exam.

4. It is the student's responsibility to verify that all the listed problems and pages are contained is this booklet. Unanswered questions receive zero points regardless of reason.

Problem | Page(s) | Approximate Points | Approximate Time |

I | 2 | 28 | 15 – 20 minutes |

II | 3 | 20 | 10 – 14 minutes |

III | 4 | 27 | 15 – 19 minutes |

IV | 5-11 | 60 | 30 – 42 minutes |

| | | |

Total | | 135 | 70 – 95 minutes |

Problem I (28 points) Page

Multi-unit Breakeven not on Spring 2004 Exam!

Parts A and B. The Jackson Company produces and sells three products and had the following predictions for the month of August:

Part A. The breakeven dollar sales volume with the predicted sales mix is $______________.

Part B. Assume the sales mix is as stated below and the firm desires a net operating profit of $5,502, fill in missing four amounts relating to dollar sales necessary to earn the desired profit:

Part C. The Johnson Company manufactures a single product that sells for $80 each. Currently variable costs are $65 per unit and fixed costs are $150,000. A new plan would reduce variable costs to $55 per unit while increasing fixed costs to $300,000. Sales price is...