[jeff]

NINJA Study Notes, Flashcards, and Audio: https://www.another71.com/products-page/

Wiley Software: https://www.another71.com/wiley-cpa-software/

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[jtb328]

@Journey to Fate

I have the same problem!! I have been trying to find a way to force myself to remember it, making it stupid mnemonics or scenarios but nothing seems to work. Have you found a way to master Appreciation and Depreciation in the economics section since you posted? If so, do share!

BEC - 67, 68, 68
AUD - 44
FAR - 40, 50
REG - 68, 68

[jtb328]

@Journey to Fate

I have the same problem!! I have been trying to find a way to force myself to remember it, making it stupid mnemonics or scenarios but nothing seems to work. Have you found a way to master Appreciation and Depreciation in the economics section since you posted? If so, do share!

BEC - 67, 68, 68
AUD - 44
FAR - 40, 50
REG - 68, 68

[mgoloubenko]

Good luck today Dualmatrix! You've got this 🙂 May the light of Peter Olinto shine down on you hahaha

FAR 4/9/12- PASSED
BEC 7/13/12- PASSED
AUD 8/16/12- Ughhh 71, Rematch: 90!!!
REG-12/6/12 PASSED

USC MAcc- Fight on!

They say good things come to those who wait, but only those things that are left by those who hustle.

[mgoloubenko]

Good luck today Dualmatrix! You've got this 🙂 May the light of Peter Olinto shine down on you hahaha

FAR 4/9/12- PASSED
BEC 7/13/12- PASSED
AUD 8/16/12- Ughhh 71, Rematch: 90!!!
REG-12/6/12 PASSED

USC MAcc- Fight on!

They say good things come to those who wait, but only those things that are left by those who hustle.

[Anonymous]

anyone know how to figure out question # 29 on the AICPA 2012 released questions:.. doesnt seem complicated but not getting the right answer for some reason 🙁 dont know what im doing wrong

ceramics manufacturer sold cups last year for $7.50 each. Variable costs of manufacturing were $2.25

per unit. The company needed to sell 20,000 cups to break even. Net income was $5,040. This year,

the company expects the following changes: sales price per cup to be $9.00; variable manufacturing

costs to increase 33.3%; fixed costs to increase 10%; and the income tax rate to remain at 40%. Sales in

the coming year are expected to exceed last year's sales by 1,000 units. How many units does the

company expect to sell this year?

a. 21,000

b. 21,600

c. 21,960

d. 22,600

how is the answer d.. i got C

please explain!!

[Anonymous]

anyone know how to figure out question # 29 on the AICPA 2012 released questions:.. doesnt seem complicated but not getting the right answer for some reason 🙁 dont know what im doing wrong

ceramics manufacturer sold cups last year for $7.50 each. Variable costs of manufacturing were $2.25

per unit. The company needed to sell 20,000 cups to break even. Net income was $5,040. This year,

the company expects the following changes: sales price per cup to be $9.00; variable manufacturing

costs to increase 33.3%; fixed costs to increase 10%; and the income tax rate to remain at 40%. Sales in

the coming year are expected to exceed last year's sales by 1,000 units. How many units does the

company expect to sell this year?

a. 21,000

b. 21,600

c. 21,960

d. 22,600

how is the answer d.. i got C

please explain!!

[momof4]

CPAwanabe

Sales= FC + EBT / CM Ratio

20,000= FC/5.25

FC= 105,000

Sales=105,000 (5040 * 1.4)

---

.7

Sales = 162,0000/7.5

Sales last year were 21,600

Increase by 1000 and you have 22, 600 for this year

What do you think?

BEC 84
FAR 80
AUD 85
REG 78

[momof4]

CPAwanabe

Sales= FC + EBT / CM Ratio

20,000= FC/5.25

FC= 105,000

Sales=105,000 (5040 * 1.4)

---

.7

Sales = 162,0000/7.5

Sales last year were 21,600

Increase by 1000 and you have 22, 600 for this year

What do you think?

BEC 84
FAR 80
AUD 85
REG 78

[Anonymous]

I am a little confused by the equation above, doesnt it work this way instead?

Sales= FC + EBT / CM Ratio

20,000= FC/5.25

FC= 105,000

FC NI 1-T

Unit Sales= 105,000 + (5040/0.60)

---

.7 (the cont. margin ratio)

Sales = 162,0000 from above

---

7.5 (selling price)

Sales last year were 21,600

Increase by 1000 and you have 22, 600 for this year

[Anonymous]

I am a little confused by the equation above, doesnt it work this way instead?

Sales= FC + EBT / CM Ratio

20,000= FC/5.25

FC= 105,000

FC NI 1-T

Unit Sales= 105,000 + (5040/0.60)

---

.7 (the cont. margin ratio)

Sales = 162,0000 from above

---

7.5 (selling price)

Sales last year were 21,600

Increase by 1000 and you have 22, 600 for this year

[momof4]

AmyLynn

We did the same thing. Dividing by .60 is the same as multiplying by 1.4.

I think that means we are both on track. Happy studies.

BEC 84
FAR 80
AUD 85
REG 78

[momof4]

AmyLynn

We did the same thing. Dividing by .60 is the same as multiplying by 1.4.

I think that means we are both on track. Happy studies.

BEC 84
FAR 80
AUD 85
REG 78

[Anonymous]

If a question says “Net Income”.. are you suppose to assume its net income after tax… cant it be Net income before tax, if it doesnt say it outright in the question.

[Anonymous]

If a question says “Net Income”.. are you suppose to assume its net income after tax… cant it be Net income before tax, if it doesnt say it outright in the question.

[momof4]

Net income is net or minus taxes. Many accounting/financial type questions speak of net income but the tax affect does not effect your answer so you forget the significance of the “net”. However if the question gives you information about the tax rate you can be pretty sure it will affect your answer.

For example if we say we deduct operating expenses from revenues to arrive at net income that is true. However we did not mention that we do indeed need to deduct the taxes for it to truly be net income. This is where we should consider the term EBIT (Earnings Before Interest and Taxes).

Sometimes the examples are simplified to focus on the concept that is being studied but then you are left to piece together the other items like take you taxes out to call it net income.

I hope that helps.

BEC 84
FAR 80
AUD 85
REG 78

[Author]

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