# Mba515 Midterm

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MBA515 Midterm Exam Grading Summary These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below. | Date Taken: | 11/26/2012 | Time Spent: | 1 h , 53 min , 23 secs | Points Received: | 187.50 / 270 (69.4%) | | Question Type: | # Of Questions: | # Correct: | Essay | 6 | N/A | | | Grade Details - All Questions | 1. | Question : | Schlag Inc. expects its sales in January to be \$111,000. The company's contribution margin ratio is 65% and its fixed monthly expenses are \$64,000. Required: Estimate the company's net operating income for January, assuming that the fixed monthly expenses do not change. Show your…show more content…
Required: a. Assume the company's monthly target profit is \$16,060. Determine the unit sales to attain that target profit. Show your work! b. Assume the company's monthly target profit is \$40,150. Determine the dollar sales to attain that target profit. Show your work! | | | Student Answer: | | a. target profit + fixed expenses / contribution margin per unit 16060 + 345290 / 80.3 = 4500 contr margin = selling price - variable expenses 110-29.70= 80.3 contr margin b. target profit + fixed expenses / contribution margin per unit 40150 + 345290 / 80.3 = 4800 contr margin = selling price - variable expenses 110-29.70= 80.3 contr margin | | | | Points Received: | 30 of 45 | | Comments: | b. Dollar sales to attain target profit = (Target profit + Fixed expenses) CM ratio = (\$345,290 + \$40,150) 0.73 = \$528,000 | | | 5. | Question : | Kawalek Corporation's balance sheet appears below: Comparative Balance Sheet Ending Beginning Balance Balance Assets: Cash and cash equivalents-------------------------- \$ 35 \$ 36 Accounts receivable--------------------------------- 62 53 Inventory------------------------------------------ 64 65 Property, plant, and equipment-------------------- 722 600 Less accumulated