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A.
- In a sales mix break-even problem. Total fixed costs divided by the package contribution margin is to arrive at the
- Total units to break-even
- Units to break-even for a particular product in the mix
- Total break-even sales pesos
- Composite break-even point in units
- Margin of safety ratio is computed by dividing excess of actual or budgeted sales from break-even sales or it can be determined by
- Dividing contribution margin ratio by variable cost ratio
- Dividing profit ratio by contribution margin ratio
- Dividing contribution margin ratio by profit ratio
- What is the product contribution margin?
- Sales minus all variable costs
- Sales minus variable cost of goods sold
- Sales minus all fixed costs.
- Sales minus fixed manufacturing overhead.
B.
Alpha Company Selected Financial Data
| Year Ended December 31 |
| Accounts | | 2017 | 2018 |
| Cash | $ | 10,000 | 80,000 |
| Marketable securities | | 30,000 | 10,000 |
| Accounts receivable, net | | 50,000 | 150,000 |
| Inventories | | 90,000 | 150,000 |
| Land and Building, net | | 340,000 | 360,000 |
| Notes payable, Trade | | 70,000 | 110,000 |
| Accounts payable, Trade | | 20,000 | 40,000 |
| Year Ended December 31 |
| | | 2017 | 2018 |
| Net sales | P | 500,000 P | 800,000 |
| Cost of sales | | 1,000,000 | 1,400,000 |
Note: use 360 days for computation of receivable and inventory turnover days.
- Alpha acid-test (quick) ratio as of December 31, 2017 is:
a. 0.50 to 1 b. 0.70 to 1 c. 1.0 to 1 d. 2.0 to 1
- Alps current ratio at December 31, 2017 is
a. 0.50 to 1 b. 0.70 to 1 c. 1.0 to 1 d. 2.0 to 1
- Alps receivable turnover for 2017 is
- 5 times b. 10 times c. 23 times d. 46 times
- Alps average collection period of receivable is;
- 72 days b. 36 days c. 15.65 days d. 7.83 days
- Alps inventory turnover for 2017 is:
- 8.3 times b. 10 times c. 11.1 times d. 13.3 times
- Alps inventory days turnover for 2017 is:
- 43.37 days b. 36 days c. 32.43 days d. 27.07 days
Answer & Explanation
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