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ACC 241 -Exam II Practice Q's Ch. 7, 8, 12 Study Guide with Valid Solutions $12.49   Add to cart

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ACC 241 -Exam II Practice Q's Ch. 7, 8, 12 Study Guide with Valid Solutions

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ACC 241 -Exam II Practice Q's Ch. 7, 8, 12 Study Guide with Valid Solutions At the breakeven point, contribution margin equals revenue. True False - ️️ Correct-False If there is little or no relationship between the cost and the volume, the data points on a scatter plot will appear almost...

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  • September 25, 2024
  • 26
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • ACC 241
  • ACC 241
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EmillyCharlotte
TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024

ACC 241 -Exam II Practice Q's Ch. 7, 8,
12 Study Guide with Valid Solutions


At the breakeven point, contribution margin equals revenue.

True

False - ✔️✔️Correct-False

If there is little or no relationship between the cost and the volume, the data points on a

scatter plot will appear almost as a straight line.

True

False - ✔️✔️Correct-False

Operating leverage is the use of fixed cost to extract higher percentage changes in

profits as sales activity changes.

True

False - ✔️✔️Correct-True

Future costs that differ across alternatives are relevant costs.

True

False - ✔️✔️Correct-True

In deciding the optimal mix of products that use a constrained resource, it is important to

determine the contribution margin per unit of scarce resource.


1/26

,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
True

False - ✔️✔️Correct-True

The two major categories of capital investment decision models are non-discounting

models and discounting models.

True

False - ✔️✔️Correct-True

In order to use the payback period model, the proposed investment must have even

cash inflows.

True

False - ✔️✔️Correct-False

Both the payback period and the accounting rate of return ignore the time value of

money.

True

False - ✔️✔️Correct-True

Both the payback period and the accounting rate of return do not consider the

profitability of a project over its life span.

True

False - ✔️✔️Correct-False

If the net present value of an investment is zero, the investment earns less than the

minimum required rate of return.

True

2/26

, TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
False - ✔️✔️Correct-False

Tyler Corporation is a wholesaler that sells a single product. Management has provided

the following cost data for two levels of monthly sales volume. The company sells the

product for $127.20 per unit.



Sales volume (units): 5,000 6,000

Cost of Sales: $419,000 $502,800

Selling and Administrative costs: $186,500 $202,200



The best estimate of the total contribution margin when 5,300 units are sold is:



- $146,810

- $230,020

- $51,410

- $32,330 - ✔️✔️Correct-$146,810



VC per unit:[705,000 (502,800 + 202,200) - 605,500(419,000 + 186,500)] / 6,000 -

5,000 = $99.50$127.20 (SP) -$99.50 (VC) = $27.70 (CM) x 5,300 (units) = $146,810

All else being equal, which of the following would not cause the contribution margin to

decrease?

1. An increase in total variable costs.


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