Reference no: EM132186625
Questions -
Question 1 - Our Company manufactures bird feeders. The budgeted sales price is $20 per unit, and the variable costs are $12 per unit. Budgeted fixed costs for the company are $25,000.
What is the budgeted amount for operating income for 5,000 bird feeders?
$8.00 per unit
$45,000
$25,000
$15,000
Question 2 - Our Company manufactures bird feeders. The budgeted sales price is $30 per unit, and the variable costs are $12 per unit. Budgeted fixed costs for the company are $15,000.
What is the budgeted amount for contribution margin for 5,000 bird feeders?
$18.00 per unit
$90,000
$75,000
$60,000
Question 3 - The actual operating income for our company for the current year was $97,000. The flexible budgeted operating income for actual sales volume was $95,000, and the static budget for operating income was $96,000.
What is the flexible budget variance for operating income on the Flexible Budget Performance Report?
$2,000 favorable
$2,000 unfavorable
$1,000 favorable
$1,000 unfavorable
Question 4 - The static budget for our company shows a sales volume of 2,000 units and a sales price of $60 per unit. Actual sales for the year totaled 2,100 units, and the actual sales price was $58 per unit.
What is the flexible budget variance for sales revenue on the Flexible Budget Performance Report?
$4,200 favorable
$4,200 unfavorable
$6,000 favorable
$6,000 unfavorable
Question 5 - Which of the following would most likely be evaluated using residual income?
cost center
revenue center
profit center
investment center
Question 6 - A manager who is responsible for generating revenue and controlling costs is most likely the manager of:
a cost center
a revenue center
a profit center
an investment center
Question 7 - The following information is available for our company for the current year:
- operating income, $75,000;
- average total assets, $500,000;
- net sales, $750,000; and
- required rate of return, 12%.
Calculate the return on investment (ROI) rounded to two decimal places.
6.67%
10.00%
15.00%
16.67%
Question 8 - The following information is available for our company for the current year:
- operating income, $45,000;
- average total assets, $400,000;
- net sales, $900,000; and
- required rate of return, 12%.
Calculate the profit margin to two decimal places.
4.44%
5.00%
8.89%
11.25%
Question 9 - The following information is available for our company for the current year:
- operating income, $75,000;
- average total assets, $500,000;
- net sales, $750,000; and
- required rate of return, 12%.
Calculate the asset turnover to two decimal places.
1.25 times
1.50 times
6.67 times
8.75 times
Question 10 - The following information is available for our company for the current year:
- operating income, $75,000;
- average total assets, $500,000;
- net sales, $750,000; and
- required rate of return, 12%.
Calculate residual income.
($15,000)
$15,000
($60,000)
$60,000