29. Assuming allocation of joint cost by the Sales at Split-Off Method, how much

Question

29. Assuming allocation of joint cost by the Sales at Split-Off Method, how much cost would be allocated for Product B above in Item 2 Assume Selling Price is Sale Price at Split Off a. $ 6,667 b. S 26,667 c. $40,000 d. $50,000 30. Johnson Manufacturing Company had the following information for current year Selling price per unit Variable cost per unit Total fixed cost $50 30 $200,000 The breakeven point in units is: a. 1,500 units b. S 4,000 units c. 6,667 units d. $10,000 units Accounting 211 Final Examination (continued) page 8 31, Using the data in itetn 30 above, when the sales line is plotted on a graph, the dollar amount at which the line crosses the breakeven point is a 20,000 b. $500,000 c. $333,350 d. 75,000 32 Using the data in Item #30 above, what is the profit when two (2) units more than the breakeven point is sold: 40 b. 100 c. $500,100 c. $ 200,040 a. S

Explanation / Answer

30 Selling Price 50.00 Less: Variable Cost 30.00 Contribution Margin 20.00 Total Fixed Cost 200000 Break Even Point: Fixed Cost/Contribution Margin Break Even Point: 200000/20 Break Even Point: 10000 Units Answer is D 31 Break Even Units 10000 Units Selling Price 50.00 Break Even Sales 500000 Answer is B 32 Break Even Units 10000 Units Units above Break Even Units 2 Units Contribution Margin 20.00 Total Contribution Margin 40.00 Answer is A Proof for Q32: Units Unit Price Amount Sales Value 10002 50.00 500100 Less: Variable Cost 10002 30.00 300060 Contribution Margin 10002 20 200040 Less: Fixed Cost 200000 Net Profit 40

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