1. Contribution margin is:

      A.    the excess of sales revenue over variable cost

      B.    another term for volume in the "cost-volume-profit" analysis

      C.    profit

      D.    the same as sales revenue

2. Salim’s fixed costs are RM41, 500, the variable cost is RM12 per unit. If Salim sells the product for RM22 per unit, the breakeven point is:

      A.    4,150 units

      B.    8,300 units

      C.    2,075 units

      D.    6,225 units

3. The fixed costs of Juara Co. are RM500, 000 and the unit contribution margin is RM40. If the fixed costs are increased by RM80,000, what is the break-even point?

      A.    14,500                                   

      B.    12,500

      C.    8,333                                     

      D.    9,667

4. The followings are underlying assumptions of CVP analysis EXCEPT:

A.          the changes in the activity are the only factors that affect costs

B.    the costs classifications are reasonably accurate

C.    the beginning inventory is larger than ending inventory

D.     sales mix is constant

5. Fatt Choo Sdn Bhd’s sales are RM820, 000, variable costs are 62% of sales, and operating income is RM260, 000, what is the contribution margin ratio?

A.    53.1%                                    

B.    38%

      C.    62%                                       

D.    32%

6. If fixed costs are RM500, 000 and the unit contribution margin is RM12, what amount of units must be sold in order to realize an operating income of RM100, 000?

A.    5,000                                     

B.    41,667

C.    50,000                                   

D.    58,333

7. If sales, variable costs and operating income are RM400, 000, RM200, 000 and RM100,000 respectively, what is the contribution margin ratio?

1. 75%
2. 50%
3. 25%
4. 0%

8. Titian Bhd had a contribution margin of RM300, 000 and a contribution margin ratio of 20%, what is the total variable cost?

1. RM1,500,000
2. RM1,200,000
3. RM240,000
4. RM60,000

9. Zaza West Sdn Bhd reported the following data in its Statement of Profit or Loss and Other Comprehensive Income:

Unit sold                                          8,000     

Sales revenue                                     RM9,600,000

            Variable costs                                  RM6,000,000

Fixed cost                                RM2,600,000

If the company desired to earn a target net profit of RM1,270,000, it would have to sell:

1. 5,778 units
2.   8,600 units
3.   10,160 units
4.   11,908 units

Draw the graph for a monopoly with demand, marginal revenue, and marginal cost curves. Identify the profit-maximizing output level (Qm) and price (Pm). Suppose the monopolist sells Qm units of output at the regular price and then puts the product on sale at a lower price, Ps. Show the new price and quantity. Identify the consumer surplus of the additional sales. What happens to the firm’s profits and Does price discrimination lead to a more efficient or less efficient outcome? Why or why not?

1.) As each extra unit is sold, what happens to a monopolist’s marginal revenue? ...... (A) A monopolist's marginal revenue decreases. (B) A monopolist's marginal revenue increases. (C) A monopolist's marginal revenue increases then increases again as even more units are sold. (D) A monopolist's marginal revenue remains static.

2.) When government price regulations paves a way for competitors to band together to reduce output, keep away competition and keep prices high it is known as ________....... (A) regulatory capture. (B) deregulatory limits. (C) deregulation policy.

3.) An example of a natural monopoly is a(n) ________ because the infrastructure has already been built so the marginal cost is relatively low....... (A) cereal producer (B) tire distributor (C) electric company

4.) Monopolists will earn the most profit by producing....... (A) where total revenue is farthest above total cost. (B) where total cost in the lowest. (C) where total revenue is highest.

5.) If two companies are seeking regulatory approval to merge their respective businesses, which of the following will most likely be the focus of the arguments that they will present in favor of the merger?........(A) The newly created firm is able to take advantage of additional trade barriers. (B) The newly created firm will benefit consumers by operating in the same manner as before. (C) Consumers can purchase better-quality goods or services at a lower price.

(c) Does it seem that Wal-Mart’s revenue is closely related to the general state of the economy?

Identify and remove the six cases corresponding to December revenue.

(f) Does it seem that Wal-Mart’s revenue is closely related to the general state of the economy? Use all plots and statistical criteria on the Excel Regression output to explain it. (g) Compare the results of parts (a) and (d), which of these two models is better? Use R-square values, adjusted R-square values, Significance F values, p-values, scatter plots, residual plots and normal probability plots to explain your answer.

In the current tax year, IRS, the internal revenue service of the United States, estimates that five persons of the many high network individual tax returns would be fraudulent. That is, they will contain errors that are purposely made to cheat the government. Although these errors are often well concealed, let us suppose that a thorough IRS audit will uncover them.

Given this information, if a random sample of 100 such tax returns are audited, what is the probability that exactly five fraudulent returns will be uncovered? Here, the number of trials is n=100. And p=0.05 is the probability of a tax return will be fraudulent. Answer the following questions.

1. What is the probability that five fraudulent returns will be uncovered based on 100 IRS audits ? (n=100, p=0.05)
2. If a random sample of 250 high net worth tax returns are audited, what is the probability that the IRS will uncover at least 15 fraudulent errors? (n=250 and P= 0.05)
3. If a random sample of 250 high net worth tax returns are audited, what is the probability that the IRS would uncover at least 15 fraudulent returns but at most 20 fraudulent returns? (n=250 and P= 0.05)
4. What is the probability that out of the 250 randomly selected high net worth tax returns no fraudulent return is uncovered? (n=250 and P= 0.05)
5. Aside from the ethics of tax fraud and based solely on your answers to questions 1-4, do you think it would be advisable to cheat on your tax return? Do you need more information to decide? What type of information?

Describe the purpose and the financial reporting requirements for the General and Special Revenue Funds. Include the way the modified basis of accounting is used to account for revenues and expenditures along with the use of budgetary accounts in your discussion.

Using a single diagram with the same cost and revenue functions, compare and contrast the price, output and profitability of a single-price monopolist with that of a perfectly competitive firm.

Locate and read Section 385 of the Internal Revenue Code and develop a comprehensive list of factors that indicate legitimate debt. What is the status of the regulations that are to expand on this Code section?

In service companies, revenue is recognized either at a point in time, or over time. Compare and contrast the rules for recognizing revenue under these two circumstances. please answer in your own words.

Please show the work

1. During a year of operation, a firm collects $175,000 in revenue and spends $80,000 on labor expense, raw materials, rent, and utilities. The firm’s owner has provided $500,000 of her own money instead of investing the money and earning a 14 percent annual rate of return.
   1. The explicit costs of the firm are $_______. The implicit costs are

$ _______________. Total economic cost is $_____________.

2. The firm earns economic profit of $___________________________.

3. The firm’s accounting profit is $_____________________________.

4. If the firm’s costs stay the same but its revenue falls to $____________, only a normal profit is earned.

5. If the owner could earn 20 percent annually on the money she has invested on the firm, the economic profit of the firm would be __________ (when revenue is $175,000).