ADMS 3510 Study Guide - Midterm Guide: Earnings Before Interest And Taxes, Variable Cost, Contribution Margin

• School: York University
• Department: Administrative Studies
• Course: ADMS 3510
• Professor: Gary Spraakman

Document Summary

Marking guide, adms 3510 mid-term examination, october 9, 2016. Enhanced equipment: 750,000/(49-35) = 53,571 (6 marks: many students calculated the following which is incorrect. This question is not solvable as the 35% is greater than the contribution margin (14/49 = 28. 6%). X = -238,095 many students neglected the negative sales. (7 marks: sales = 750,000 + 120,000/(1 0. 20) = 900,000/14. = 64286 units (7 marks: (46-36)x 330,000 = (49-35)x 750,000. Question 2 (25 marks: equivalent units of production. Units started and completed during period (500,000 units 50,000 units in ending inventory) 508,500 (5 marks: cost per equivalent unit. 0. 285 (7 marks: cost of ending work in process inventory and units transferred out. Cost to complete the units in beginning work in process inventory: Equivalent units of production required to complete the beginning inventory. Cost to complete the units in beginning inventory. Cost of units started and completed this period: Cost of units started and completed this period.