Question-1) shown that there are times when unscrupulous
top managers can exploit their powers. What act in 2002 was
implented to protect the interest of those who invest in
publicly traded companies by improving the reliability and accuracy
of corporate financial reports and disclosures. What are the
key areas of this legislation?
Question-2) What effect does an increase in volume have
a. Unit fixed cost?
b. Unit variable cost?
c. Total fixed cost?
d. Total variable cost?
Question-3 ) Maxon Products distributes a single
product, a woven basket whose selling price is $8 and whose
variable cost is $6 per unit. The company’s monthly
fixed expense is $5,500.
1. Solve for the company’s break-even point in unit
sales using the equation method.
2. Solvd for the company’s break-even point in sales
dollars using the equation method and the Contribution Margin (CM)
3. Solve for the company’s break-even point in unit
sales using the formula method.
4. Solve for the company’s break-even point in sales
dollars using formula method and the CM ratio.
Question-4) The following activities occur at Greenwich
Corporation, a company that manufactures a variety of
a. Varous individuals manage the parts
b. A clerk in the factory issues purchase orders for a
c. The personnel department trains new production
d. The factory’s general manager meets with other
department heads such as marketing to coordinate
e. Direct labor workers assemble products.
f. Engineers design new products.
g. The maintenance department performs periodic
preventive maintenance on general-use equipment.
Classify each of the activities above as either a
unit-level, batch-level, product-level, or organization sustaining
Question-5)The budgeted unit sales of Haerve Company for
the upcoming fiscal year are provided below:
Budgeted Unit Sales
Quarter 1 =
Quarter 2 =
Quarter 3 =
Quarter 4 =
The company’s variable selling and administrative
expenses per unit are $2.75. Fixed selling and administrative
expenses include advertising expenses of $12,000 per quarter,
executive salaries of $40,000 per quarter, and depreciation of
$16,000 per quarter. In addition, the company will make
insurance payments of $6,000 in the 4th quarter. Finally,
property taxes of $6,000 will be paid in the 3rd
Prepare the company’s selling and administrative expense
budget for the upcoming fiscal year.
Question-6) Tundra Services Company, a division of a
major oil company, provides various services to the operatiors of
the North Slope oil field inAlaska. Data concerning the most
recent year appears below.
Net operating income
Average operating assets: $36,000,000
1. Compute the margin forTundra Services
2. Compute the turnover for Tundra Services
3. Compute the return on investment (ROI) for Tundra