ACCT 346

ACCT 346 WEEK 6 QUIZ

ACCT 346 Week 6 Quiz

Question 1.1. (TCO 7) Elliot’s Escargots sells commercial and home snail extraction tools and serving pieces. Currently, the Serving Pieces Section takes up approximately 50% of the company’s retail floor space. The CEO of Elliot’s wants to decide if the company should continue offering Serving Pieces or focus only on Snail Extraction Tools. If the Serving Pieces are dropped, salaries and other direct fixed costs can be avoided and Snail Extraction sales would increase by 13%. Allocated fixed costs are assigned based on relative sales.

Question 2.2. (TCO 4) Paschal’s Parasailing Enterprises has estimated that fixed costs per month are $110,500 and variable cost per dollar of sales is $0.45 (6 points).

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What is the break-even point per month in sales?
What level of sales is needed for a monthly profit of $80,000?
For the month of August, Paschal’s anticipates sales of $450,000. What is the expected level of profit? (Points : 6)

Question 3.3. (TCO 6) Princess Cruise Lines has the following service departments: concierge, valet, and maintenance. Expenses for these departments are allocated to Mediterranean and transatlantic cruises. Expenses for the departments are totaled (both variable and fixed components are combined) and as follows.
……………………… ALL Included !!!!

ACCT 346 WEEK 6 QUIZ