Post-Test Pricing and Profitability Concept
1
Suktang, Inc., produces and sells magic market. Suktang’s performance report for
October follows:
Actual
Budgeted
Units sold
50,000
40,000
Sales
$350,000
$290,000
Variable costs
225,000
190,000
Contribution margin
$125,000
$100,000
Market size (in units)
1,000,000
1,000,000
The contributin margin volume variance:
a. $ 25.000 Unfavorable
b. $ 25.000 Favorable
c. $ 20.000 Unfavorable
d. $ 20.000 Favorable
Following data is for question number 2-5
Revenue
Cost of Goods Sold
Direct Material
$ 120.000
Direct Labor
42.000
Overhead
34.000
Gross Profit
Selling and admin expense
Operating Income
$ 352.800
196.000
156.800
17.000
139.800
2.
The firm wants to earn the same amount of profit as last year, calculate the mark up
on COGS:
a. 89%
b. 44 %
c. 80 %
d. 194 %
3.
The firm wants to earn the same amount of profit as last year, calculate the mark up
on DM:
a. 89%
b. 145 %
c. 80 %
d. 194 %
4.
This year the COGS of the job is $ 250.000 what should be the revenue if the
company want to earn the same profit as previous year?
a. $ 370.440
b. $ 282.240
c. $ 450.000
d. $ 735.000
5.
This year the Direct Material of the job is $ 100.000 what should be the revenue if
the company want to earn the same profit as previous year?
a. $ 189.000
b. $ 245.000
c. $ 180.000
d. $ 294.000
Following data is for question number 6-8.
SUVONSY Corporation, Inc., has just completed its first year of operations. The unit
costs on a normal costing basis are as follows:
Variable costs per unit:
Direct materials
$7.00
Direct labor
$12.00
Variable overhead
$4.00
Variable selling expense
$2.50
Fixed costs per year:
Fixed overhead
$240.000
Fixed selling and administrative expenses
$236.000
Unit produced : 120.000 unit
Unit sold : 100.000 unit
Unit selling price : $30
6.
The unit cost based on absorption costing is:
a. $ 25
b. $ 23
c. $ 25,4
d. $ 23,4
7.
The unit cost based on variable costing is:
a. $ 25
b. $ 23
c. $ 25,4
d. $ 23,4
8.
Based on the data above, what is the correct condition below:
a. absorption-costing income > variable-costing income
b. absorption-costing income < variable-costing income
c. absorption-costing income = variable-costing income
d. no correct answer
9.
There are some limitation of profitability analysis, which of the following answer is
not correct
a. Focus on past performance
b. Emphasis on quantifiable measures
c. Impact on behavior
d. Emphasis on qualitative measures
10.
The difference between actual price and expected price multiplied by the actual
quantity or volume sold is
a. price volume variance
b. sales price variance
c. contribution margin variance
d. contribution margin volume variance