NCR FRONTLINERS 2019

MAS ANSWER KEY

1 A 21 C 41 B.
2 A 22 A 42 C.
3 B 23 D 43 B.
4 D 24 A 44 A.
5 C 25 B 45 A.
6 D 26 D 46 C.
7 C 27 B 47 A.
8 C 28 C 48 C.
9 A 29 D 49 C.
10 D 30 A 50 B.
11 A 31 D 51 C.
12 C 32 D 52 A.
13 A 33 D 53 D.
14 A 34 B 54 B.
15 C 35 D 55 B.
16 C 36 C 56 C.
17 A 37 D 57 B.
18 A 38 D 58 B.
19 B 39 D 59 B.
20 D 40 C 60 C.

44. At break-even point, revenues are equal to expenses. For each unit sale, the net income will increase by the unit
contribution margin for each additional item sold.

45. At break-even point, revenues are equal to expenses. For each unit sale, the net income will increase
by the unit contribution margin for each additional item sold.

46. Choice c is the formula for the volume variance

47. Total peso sales required 120,000 ÷ (0.25 – 0.1) 800,000*

Less prior sales 400,000
Required increase in sales 400,000

*Peso sales required to earn profit stated as percentage of sales (ROS):

S = [FC + (ROSS)]  CMR
(CMR S) = [FC + (ROSS)]
(CMR S) - (ROSS) = FC
(CMR – ROS) S = FC
S = FC  (CMR – ROS)

48. Efficiency variance = (AH – SH) x SVOHR (14,000 – 13,500) 6 = 3,000 UNF

1
Standard hours: 4,500 x 3 13,500

49. Interest Expense: P1M x 0.1 P100,000

Income before interest expense: P350,000 + P100,000 P450,000
Times interest earned: (P450,000 ÷ P100,000) 4.5 times

50. Controllable segment profit margin = Revenue - (Segment's variable operating costs + Controllable fixed costs).
(P400,000 – P180,000 – P40,000) P180,000

51. ROI = Operating Profit ÷ Average investment

Average Operating assets: (P1,000,000 ÷ 2) = P500,000
ROI: (P100,000 ÷ P500,000) = 20%
52. The Fabrication division has excess capacity, therefore the division can transfer the units at a minimum transfer
price of P50