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Pretest 2 MAS Review

This document contains an exam for a managerial accounting course. It includes two multiple choice questions involving cost-volume-profit (CVP) analysis and break-even points for companies with multiple products. Question 8 involves analyzing the profitability and break-even points for three pen and paper sets sold by Finland Corp. Question 9 involves computing the sales volumes needed for products A and B sold in a 3:5 ratio by Spain Inc. to meet different income and profitability targets.

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Christine Mae Ydel
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68 views

Pretest 2 MAS Review

This document contains an exam for a managerial accounting course. It includes two multiple choice questions involving cost-volume-profit (CVP) analysis and break-even points for companies with multiple products. Question 8 involves analyzing the profitability and break-even points for three pen and paper sets sold by Finland Corp. Question 9 involves computing the sales volumes needed for products A and B sold in a 3:5 ratio by Spain Inc. to meet different income and profitability targets.

Uploaded by

Christine Mae Ydel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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INTERNATIONAL SCHOOL OF ASIA AND THE PACIFIC

Alimannao Hills, Peñablanca, Cagayan 3502 Philippines


Telefax No: (+63) (078) 304-1010
Website: www.isap.edu.ph E-Mail Address: [email protected]

C OLLEGE OF B USINESS E DUCATION AND M ANAGEMENT


ACCOUNTANCY DEPARTMENT
Subject Area : INTEGRATED MANAGERIAL ACCOUNTING
Term : Pretest 1 - PRELIM
Semester : FIRST Fiscal Year: 2022 – 2023
Platform Used : FACE TO FACE EXAMINATION

Name: ______________________________________Year and section: _______________


Proctor: _____________________________________ Score: ________________________

DIRECTIONS: Write the correct answer in a separate sheet of paper.

CVP RELATIONSHIPS & PROFIT PLANNING; MULTIPLE PRODUCTS


8. FINLAND CORP. produces three models of pen and paper sets, regular, silver and gold. Price and cost data are as follows.
Regular Silver Gold
Selling price P10 P20 P30
Variable costs 6 8 15
Monthly fixed costs are P200,000.

REQUIREMENTS:
(1) Which model is most profitable per unit sold?
(2) Which model is most profitable per peso sales?
(3) Suppose that the sales mix in units is 40% Regular, 20% Silver, and 40% Gold.
(a) What is the weighted-average unit contribution margin?
(b) What is the break-even point in total units?
(c) How many total units must FINLAND sell to earn P30,000 per month?
(4) Suppose the sales mix in pesos is 30% Regular, 30% Silver, and 40% Gold.
(a) What is the break-even point in total pesos sales?
(b) What amount of sales is necessary to earn P30,000 per month?

9. SPAIN INC. produces and sells two products: A and B in the ratio of 3A to 5B. Selling prices for A and B are, respectively,
P1,200 and P240; respective variable costs are P480 and P160. The company's fixed costs are P1,800,000 per year.
REQUIREMENT: Compute the volume of sales in units of each product needed to:
(a) break even.
(b) earn P800,000 of income before income taxes.
(c) earn P800,000 of income after income taxes, assuming a 30 percent tax rate.
(d) earn 12 percent on sales revenue in before-tax income.
(e) earn 12 percent on sales revenue in after-tax income, assuming a 30 percent tax rate.

------------------------------END OF EXAMINATION------------------------------

Prepared by:

JAYNARD M. LABRADOR, CPA


Instructor

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