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by: Tori Block

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7

Exam 2 Acc 212 Ch 5, 6, 7 ACC 212

Marketplace > University of Miami > ACC 212 > Exam 2 Acc 212 Ch 5 6 7
Tori Block
UM
GPA 3.8
Managerial Accounting
Mario Perez

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notes, formulas, tips on what will be on test
COURSE
Managerial Accounting
PROF.
Mario Perez
TYPE
Study Guide
PAGES
7
WORDS
KARMA
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This 7 page Study Guide was uploaded by Tori Block on Friday March 20, 2015. The Study Guide belongs to ACC 212 at University of Miami taught by Mario Perez in Spring2015. Since its upload, it has received 205 views.

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Date Created: 03/20/15
32015 1239 PM Ch 5 CostVolumeProfit Analysis CVP How do changes in sales volume impact our costs and profits Breakeven point Total Sales Revenue Total costs profit0 Quantity 1 Breakeven in units How many units do we need to sell in order to make a profit of 0 Revenue 2 Breakeven in Sales Dollars What does our sales revenue need to be in order to make a profit of 0 Contirubiton Income Statement Sales Revenue 3000 units X12 36000 Less Variable expeses 000 unites X 9 27000 Contribution Margin9000 Less Fixed expenses 12000 Net Loss 3000 Step 1 What is contribution margin per unit Selling price Variable Cost per unit 129 3 for ever unit margin goes up by 3 or 9000 total 3000 units For each unit that we sell we have 3 to cover our m expenses and profits Step 2 Contribution margin ratio Contribution margin per unit selling price 312 25 or 9000 36000 for every 1 in sales revenue we have 25 cents to cover our fixed expenses and rest to profits Variable expenses are 75 of sales revenue 1 Break even in Units Contribution approach Fixed Expenses 0 contribution margin per unit of units 1200003 4000 units to check Sales revnue 000 X 12 48000 Variable expenses 4000 X 9 36000 Contirbution Margin 12000 Fixed 12000 Profit 0 If you sell 4001 units 48012 Vairbale 36009 Contribution margin 12003 Fixed 12000 Profit 3 Second way to find of units Equation Method Sales Revenue Variable expenses fixed expenses profit selling price X of unitscost per unit X of unitsfixed expenses0 12X9x 120000 3x12000 x4000 2 Sales Revenue Break even in sales Dollars 1 Contribution Approach Fixed Expenses 0 contribution margin ratio 00 Sales Revenue 12000025 48000 or 2 Equation Approach Sales revenue variable expenses fixed expenses profit X 75x 120000 25X 12000 X 48000 Cybertext sheet 5 and 6 use info from sheet 4 Due Friday 218 Problem 1 Cost volume profit What is current sales mix Glasses 11800017700066666 23 Plates 590001770003333 13 Operating Leverage A measure of how sensitive net income is to a change in sales revenue Increase in operating leverage the more sensitive net income will be Operating leverage contribution marginprofit Operating leverage X change in sales change in profite Exam 2 6 questions on breakeven Target profit desired profit then add the profit Know if they tell yu sales go up by 10 or vairbale costs go up know what happens to operating income or the profit Ch 5 calculate operating leverage and margin of safety Ch 6 Absorption costing and variable costing 2 methods of calculating our product cost Segment reporting Breakeven analysis Absorption Costinq method that is required by GAAP Tradition income statement Product cost inventory includes Direct materials is variable Direct labor is variable Manufacturing overhead is variable and fixed Step 1 Calculate the product cost per unit Direct materials direct labor variable overhead and fixed overhead per unit total fixed costtotal produced Step 2 Income statement Sales revenue sold time price Less COGS sold time product cost per unit Gross Profit of 1860 Operating expenses Selling Admin Variable costinq Not allowed by GAAP Contribution income statement Product costs include only variable costs Direct materials Direct labor Variable Manufacturing overhead Fixed manufacturing overhead cost if not part of our product costs Fixed manufacturing overhead is reported on the income statement If we sell everything that we produced same results under both methods If we don t sell everything if there is an ending inventory different results Exam 2 Calculate cost per unit and net incomeoperating income under both methods Only asking for year 1 No reconcile the difference Segment reporting broke up the business by departmentproduct Break even by segment only fixed costs that mater are the traceable costs common doesn t matter for the segment Difference in net income is difference in ending inventory Activity Based Costing ABC A more precise method of allocating overhead Job order costing direct materials Direct labor Manu overhead Traditional approach Estimated overhead estimated activity allocation rate application 1 rate here Allocate rate X actual activity ABC multiple rates Overhead gt Activity Depreciationgt machine hours Indirect laborgt labor hours Product testinggt of tests We have multiple rates because you split it Final 26 multiple choice 26 require a calculation margin per unit the ratio ect Allocate overhead calculate different rates Go over the ones in the book Allocating overhead and then know from ch 7 how to calculate the customer margincustomer profit 32015 1239 PM 32015 1239 PM

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