# Managerial Accounting

Autor:   •  October 10, 2017  •  Case Study  •  811 Words (4 Pages)  •  105 Views

Page 1 of 4

Nanuka Ramishvili

Managerial Accouting

Homework Set #1

Exercise #1

Fill in the blanks for each of the following independent cases

 Case Selling price Variable costs per unit Total units sold Total contribution margin Total fixed costs Operating profit/loss a €30 €20 70 000 €700000(30-20)*70000 €715000700000-x=-15000 -€15 000 b 25 20 25-x=5 180 000 900 000 800 000 100000900K-800K c 12x-10=12 10 150 000 300 000 220 000 80000 d 20 14 20000 120 000 108000120K-x=12K 000

Exercise #6

A company sells hand-sewn shirts for \$25 per unit, and has fixed costs of \$7,500.   Their contribution margin ratio is 20%.

a) What is the break-even point in sales dollars?

Breakeven in \$= 7500\$/0.2 = 37500\$

b) How many units do they have to sell to break even?

Breakeven in units = 37500\$/25\$ = 1500 Units

c) How much is the variable cost per unit?

25\$*20%=5\$

25-5=20\$  variable cost per unit

e) If the company wishes to earn an operating income of \$2,000, how many units need to be sold?

Selling price 25\$ and variable cost 20\$. Fixed cost 7500;

7500+2000=9500.  9500/(25-20)=1900 units must be sold to reach operating income of 2000

Exercise #9

The summarized profit and loss statement for ABC plc for the last year is as follows;

 \$ 000 \$ 000 Sale (50 000 units) 1000 Direct materials 350 V Direct wages 200 V Fixed production overhead 200 F Variable production overhead 50 V Administration overhead 180 F Selling and distribution overhead 120 F Total expenses 1100 Profit /(loss) (100)

At a recent board meeting the directors discussed the year’s results, following which the chairman asked for suggestions to improve the situation.

...