财务管理课后习题5-2.doc

Chapter 5 Exercises
5-1. Shock Electronics sells portable heaters for $25 per unit and the variable cost to produce them is $17. Mr. Amps estimates that the fixed costs are $96,000.

a. Compute the break-even point in units.
b. Fill in the table below (in dollars) to illustrate that the break-even point has been achieved.

Sales _______________
–Fixed costs _______________
–total variable costs _______________
Net profit (loss) _______________
Solution:
Shock Electronics

b. Sales $300,000 (12,000 units * $25)
–Fixed costs 96,000
–Total variable costs 204,000 (12,000 units * $17)
Net profit (loss) $ 0
5-3.
Therapeutic Systems sells its products for $8 per unit. It has the following costs:

Rent $120,000
Factory labor $1.50 per unit
Executive salaries $112,000
Raw material $ .70 per unit

Separate the expenses between fixed and variable cost per unit. Using this information and the sales price per unit of $6, compute the break-even point.

Solution:
Therapeutic Systems

Fixed Costs
Variable Costs (per unit)
Rent
$120,000

Factory labor

$1.50
Executive salaries
$112,000

Raw materials
_______
.70

$232,000
$2.20

5-4.
Draw two break-even graphs—one for a conservative firm using labor-intensive production and another for a capital-intensive firm. Assuming these companies compete within the same industry and have identical sales, explain the impact of changes in sales volume on both firms' profits.
Solution:
Labor-Intensive and capital-intensive break-even graphs

The company having the high fixed costs will have lower variable costs than its competitor since it has substituted capital for labor. With a lower variable cost, the high fixed cost company will have a larger contribution margin. Therefore, when sales rise, its profits will increase faster than the low fixed cost firm and when the sales decline, the reverse will be true.
5-8.
The Harding Company manufactures skates. The company's income statement for 2001 is as follows:

Harding Company
Income Statement
For the Year Ended December 31, 2001

Sales (10,000 skates @ $50 each)
$500,000

Less: Variable costs (10,000 skates at $20)
200,000

Fixed costs
150,000

Earnings before interest and taxes (EBIT)
150,000

Interest expense
60,000

Earnings before taxes (EBT)
90,000

Income tax expense (40%)
36,000

Earnings after taxes (EAT)

$ 54,000

Given this income statement, compute the following:

a. Degree of operating leverage.
b. Degree of financial leverage.
c. Degree of combined leverage.
d. Break-even point in units (number of skates).
Solution:
Harding Company
Q = 10,000, P = $50, VC = $20, FC = $150,000, I = $60,000

5-12.
Sterling Optical and Royal Optical both make glass frames and each is able to generate earnings before interest and taxes of $120,000.
The separate capital structures for Sterling and Royal are shown below:

Sterling
Royal

Debt @ 12% $ 600,000
Debt @ 12% $ 200,000

Common stock, $5 par 400,000
Common stock, $5 par 800,000

Total $1,000,000
Total $1,000,000

Common shares 80,000
Common shares 160,000

a. Compute earnings per share for both firms. Assume a 25 percent tax rate.
b. In part a, you should have gotten the same answer for both companies' earnings per share. Assume a P/E ratio of 20 for each company, what would its stock price be?
c. Now as part of your analysis, assume the P/E ratio would be 16 for the riskier company in terms of heavy debt utilization in the capital structure and 25 for the less risky company. What would the stock prices for the two firms be under these assumptions? (Note: Although interest rates also would likely be different based on risk, we hold them constant for ease of analysis).
d. Based on the evidence in part c, should management only be concerned about the impact of financing plans on earnings per share or should stockholders' wealth maximization (stock price) be considered as well?
Solution:
Sterling Optical and Royal Optical
a.

Sterling
Royal
EBIT
$120,000
$120,000
Less: Interest
72,000
24,000
EBT
48,000
96,000
Less: Taxes @ 25%
12,000
24,000
EAT
36,000
72,000
Shares
80,000
160,000
EPS
$.45
$.45
b. Stock price = P/E * EPS
20 * $.45 = $9.00
c. Sterling Royal
16 * $.45 = $7.20 25 * $.45 = $11.25
d. Clearly, the ultimate objective should be to maximize the stock price. While management would be indifferent between the two plans based on earnings per share, Royal Optical, with the less risky plan, has a higher stock price.
5-13.
Firms in Japan often employ both high operating and financial leverage because of the use of modern technology and close borrower-lender relationships. Assume the Mitaka Company has a sales volume of 125,000 units at a price of $25 per unit; variable costs are $5 per unit and fixed costs are $1,800,000. Interest expense is $400,000. What is the degree of combined leverage for this Japanese firm?

Solution:
Mitaka Company

3、通过活动，使学生养成博览群书的好习惯。
B比率分析法和比较分析法不能测算出各因素的影响程度。√
C采用约当产量比例法，分配原材料费用与分配加工费用所用的完工率都是一致的。Ｘ
C采用直接分配法分配辅助生产费用时，应考虑各辅助生产车间之间相互提供产品或劳务的情况。错
C产品的实际生产成本包括废品损失和停工损失。√
C成本报表是对外报告的会计报表。×
C成本分析的首要程序是发现问题、分析原因。×
C成本会计的对象是指成本核算。×
C成本计算的辅助方法一般应与基本方法结合使用而不单独使用。√
C成本计算方法中的最基本的方法是分步法。X
D当车间生产多种产品时，“废品损失”、“停工损失”的借方余额，月末均直接记入该产品的产品成本
中。×
D定额法是为了简化成本计算而采用的一种成本计算方法。×
F“废品损失”账户月末没有余额。√
F废品损失是指在生产过程中发现和入库后发现的不可修复废品的生产成本和可修复废品的修复费用。Ｘ
F分步法的一个重要特点是各步骤之间要进行成本结转。(√)
G各月末在产品数量变化不大的产品，可不计算月末在产品成本。错
G工资费用就是成本项目。(×)
G归集在基本生产车间的制造费用最后均应分配计入产品成本中。对
J计算计时工资费用，应以考勤记录中的工作时间记录为依据。(√)
J简化的分批法就是不计算在产品成本的分批法。(×)
J简化分批法是不分批计算在产品成本的方法。对
J加班加点工资既可能是直接计人费用，又可能是间接计人费用。√
J接生产工艺过程的特点，工业企业的生产可分为大量生产、成批生产和单件生产三种，X
K可修复废品是指技术上可以修复使用的废品。错
K可修复废品是指经过修理可以使用，而不管修复费用在经济上是否合算的废品。Ｘ
P品种法只适用于大量大批的单步骤生产的企业。×
Q企业的制造费用一定要通过“制造费用”科目核算。Ｘ
Q企业职工的医药费、医务部门、职工浴室等部门职工的工资，均应通过“应付工资”科目核算。Ｘ
S生产车间耗用的材料，全部计入“直接材料”成本项目。Ｘ
S适应生产特点和管理要求，采用适当的成本计算方法，是成本核算的基础工作。(×)
W完工产品费用等于月初在产品费用加本月生产费用减月末在产品费用。对
Y“预提费用”可能出现借方余额，其性质属于资产，实际上是待摊费用。对
Y引起资产和负债同时减少的支出是费用性支出。X
Y以应付票据去偿付购买材料的费用，是成本性支出。X
Y原材料分工序一次投入与原材料在每道工序陆续投入，其完工率的计算方法是完全一致的。Ｘ
Y运用连环替代法进行分析，即使随意改变各构成因素的替换顺序，各因素的影响结果加总后仍等于指标的总差异，因此更换各因索替换顺序，不会影响分析的结果。(×)
Z在产品品种规格繁多的情况下，应该采用分类法计算产品成本。对
Z直接生产费用就是直接计人费用。X
Z逐步结转分步法也称为计列半成品分步法。√

A按年度计划分配率分配制造费用，“制造费用”账户月末(可能有月末余额/可能有借方余额/可能有贷方余额/可能无月末余额)。
A按年度计划分配率分配制造费用的方法适用于(季节性生产企业)

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