CompTIA
Checkpoint
ISC
HP
Dell
EC-Council
EXIN
Fortinet
ITIL®
Juniper
PMI
Microsoft
VMware
Avaya
Google
Salesforce
Amazon
Palo Alto Networks
Certiport
ISC2
All Vendors
  2. Home
  3. Exams
  4. Financial
  5. CMA

Free CMA Exam Braindumps (page: 104)

Page 104 of 336
PDF with 1336 Questions
View Related Case Study

When an organization is operating above the breakeven point, the degree or amount that sales may decline before losses are incurred is called the?

  1. Residual income rate.
  2. Marginal rate of return,
  3. Margin of safety.
  4. Target (hurdle) rate of return.

Answer(s): C

Explanation:

The margin of safety is me excess of budgeted revenues over breakeven revenues. It is considered in sensitivity analysis



View Related Case Study

Donnelly Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year. the shirts sold for $7.50 each, and the variable cost to manufacture them was $2.25 per unit. The company needed to sell 20.000 shirts to break even. The net income last year was $5,040 Donnelly expectations for me coming year include the following:
· The sales price of the T-shirts will be $9
· Variable cost to manufacture Will increase by one-third · Fixed costs will increase by 10%
· The income tax rate of 40% will be unchanged
The selling price that would maintain the same contribution margin rate as last year is?

  1. $9.00
  2. $8.25
  3. $10.00
  4. $9.75

Answer(s): C

Explanation:

Last year, unit variable cost was $225, so the unit contribution margin (UCM) was $5.25 ($7.50 price --$2.25). and the contribution margin rate (CMR) was 70% ($5.25. $7.50). If variable costs increase by one-third, the new variable cost will be $3 [$2.25 x (4 3)]. If a 70% CMR is desired, the $3 variable cost will be 30% of sales, and the unit sales price will be $10 ($3 30%)



View Related Case Study

Donnelly Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year. the shirts sold for $750 each, and the variable cost to manufacture them was $2.25 per unit. The company needed to sell 20.000 shirts to break even. The net income last year was $5,040. Donnelly's expectations for the coming year include the following:
· The sales price of the T-shirts will be $9
· Variable cost to manufacture will increase by one-third · Fixed costs Will increase by 10%
· The income tax rate of 40% will be unchanged
The number of T-shirts Donnelly Corporation must sell to break even in the coming year is?

  1. 17.500
  2. 19.250
  3. 20,000
  4. 22.000

Answer(s): B

Explanation:

The breakeven point (BEP) in units equals fixed cost divided by UCM. Fixed cost for the previous year was $105,000 (20,000 units at breakeven x $5.25 UCM). Fixed cost for the current year is $1 15.500 ($105,000 x 110%) The new UCM is $6 ($9 selling price $3 variable cost). Accordingly, the BEP is 19,250 units ($115.500. $6).



View Related Case Study

Donnelly Corporation manufactures and sells T-shirts imprinted with collage names and slogans. Last year, the shirts sold for $7.50 each, and the variable cost to manufacture them was $2.25 per unit, The company needed to sell 20.000 shirts to break even. The net income last year was $5,040. Donnelly's expectations for the coming year include the following:
· The sales price of the T-shirts will be $9
· Variable cost to manufacture will increase by one-third · Fixed costs will increase by 10%
· The income tax rate of 40% will be unchanged
Sales for the coming year are expected to exceed last year's by 1000 units. If this occurs. Donnelly's sales volume in the coming year will be?

  1. 22,600 units.
  2. 21,960units.
  3. 23.400 units.
  4. 21,000 units.

Answer(s): A

Explanation:

Because last year's after-tax profit was $5,040, pretax net income must have been $8.400 [$5,040 ÷ (1 --40% tax rate)] Because fixed costs have been fully recovered at the BEP, all of the UCM beyond that sales level is included in pretax net income. The UCM was $5.25, so the units sold in excess of the 20,000-unit BEP equaled 1,600 ($8,400 ÷ $5.25). If 21.600 total units were sold last year, an increase of 1.000 units results in sales of 22,600 units



Page 104 of 336



Post your Comments and Discuss Financial CMA exam with other Community members:

nancy commented on March 16, 2024
Good to learn from here
INDIA
upvote

Tacy commented on October 18, 2023
Awesome content
Anonymous
upvote

Georgodino commented on April 29, 2021
The study package is helpful in passing your exam since the practice questions are copied from real exam. But in order to learn the modules in details you need books.
ARGENTINA
upvote

Joe commented on May 16, 2019
Just Bought it, will share result with you.
Anonymous
upvote

emad hamdy commented on May 03, 2019
great for passing not so good for learning. Just use it as cheat sheet.
UNITED STATES
upvote

Amer Alnajjar commented on March 11, 2019
Still the test is under process
Anonymous
upvote

Exam Passer commented on December 06, 2018
I wrote the exam yesterday and it was a great success. Good job guys.
UNITED ARAB EMIRATES
upvote

Muhannad commented on October 09, 2018
Easy way to download
Anonymous
upvote

Harshavardhan Yedla commented on October 02, 2017
good
UNITED STATES
upvote

James commented on February 23, 2017
Ok just downloaded this exam....looks pretty damn good to me..I think this will help me pass easily.
UNITED STATES
upvote

RYAN commented on December 24, 2016
I JUST BOUGHT THIS AND I WILL BE SURE IT IS HELPFUL!! I'LL LET YOU KNOW AFTER TAKING EXAM.
UNITED STATES
upvote

KT commented on December 17, 2016
I just bought the test bank. I will provide a feedback once I start going through it and studying.
UNITED STATES
upvote

Sachin commented on May 16, 2016
Seems to be a great Stuff. Needs to prepare for the exam and hope it will be very useful.
UNITED ARAB EMIRATES
upvote

Sairam Beeman commented on January 05, 2016
very bad. pdf e-book not downloading. Latest updated questions not available. Waste of money. Don't buy this product.
UNITED STATES
upvote

Mik commented on October 08, 2015
I have difficulties downloading the CMA material! I hope that the product is right. Could anyone help me in downloading this please?
JORDAN
upvote