ACC-350 Module 2 Topic 2 Assignment Please complete the following exercises and/or problems from the textbook E21-30 E21-31 E21-37 CP21-63
ACC 350 Week 2 Assignment Please complete the following exercises and/or problems from the textbook E21-30 E21-31 E21-37 CP21-63
Please complete the following exercises and/or problems from the textbook:
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Prepare your answers in an Excel workbook, using one worksheet per exercise or problem.
Save your workbook using the filename LastnameFirstinitial.ACC350.T# where the # represents the topic number. For example, John Doe would submit assignment #5 using the following name: DoeJ.ACC350.T5.
You are not required to submit this assignment to Turnitin.
E21-30 Determining mix cost- the high-low method
The manager of quick car inspection reviewed the monthly operating cost for the past year. The cost range from $4400 for 1400 inspections to $4200 for 1000 inspections.
- Calculate the variable cost per inspection.
- Calculate the total fixed cost.
- Write the equation and calculate operating cost for 1200 inspections.
- Draw a graph illustrating the total cost under this plan. Label the axis, and show the cost at 1000, 1200, and 1400 inspections
E21-31 Calculating contribution margin ratio, preparing contribution margin income statements
- Calculate the contribution margin ratio
- Prepare to contribution margin income statements: One at the $250,000 sales level and one at the $360,000 sales level. (Hint: the proportion of each sales dollar that goes toward variable cost is constant within the relevant range)
E21-37 Using Sensitivity Analysis
Intersection Driving School charges $500 per student to prepare and administer written and driving tests. Variable costs of $150 per student include trainers’ wages, study materials, and gasoline. Annual fixed costs of $140,000 include the training facility and fleet of cars.
- For each of the following independent situations, calculate the contribution margins per unit and the breakeven point in units by first referring to the original data provided:
a. Breakeven point with no change in information.
b. Decrease sales price to $250 per student.
c. Decrease variable costs to $100 per student.
d. Decrease fixed costs to $122,500
- Compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit and the breakeven point in units.
CP21-63 computing breakeven sales and sales needed to earn a target profit; performing Sensitivity Analysis
This problem continues the Daniels Consulting situation from problem P19-40 of chapter 19. Daniels Consulting provides consulting service at an average price of $120 per hour and incurs variable cost of $60 per hour. Assume average fixed cost are $3900 a month.
- What is the number of hours that must be built to reach the breakeven point?
- If Daniels desires to make a profit of $4500, how many consulting hours must be completed?
- Daniels thinks it can reduce fixed costs to $3190 per month, but variable costs will increase to $62 per hour. What is the new breakeven point in hours?
Managerial Accounting – Cost-Volume-Profit Relationships
Text: Horngren’s Accounting, The Managerial Chapters (10th Edition)
Course: ACC-350 Managerial Accounting
School: Grand Canyon University