Wrong answer on Becker BEC chapter 5 HW question??

  • Creator
    Topic
  • #159050
    JPino23
    Participant

    Ok so I am studying for BEC and I am not sure if my brain is fried to the point that I am seeing things that really don’t exist. Anybody out there, feel free to work the following question and please share your answer with me.

    A ceramics manufacturer sold cups last year for 7.50 each. Variable costs of manufacturing were 2.25/unit. The company needed to sell 20,000 units to break even. Net income was 5,040. This year the company expects the price per cup to be 9.00; variable manufacturing costs to increase by 33.3%; and fixed costs to increase by 10%. How many cups does the company need to sell to break even?

    A) 17,111

    B) 17,500

    C) 19,250

    D) 25,667

    Upon working and re-working this question, I get 38,500 every time. Becker gets 19,250 and their explanation makes no sense because they claim that $115,500/3 = 19,250 . . . anybody with a calculator knows differently.

    I’m just looking for confirmation that I am not going certifiably insane over this stupid test. Thanks!

    REG 94, AUD 87, FAR (10/8), BEC (11/24)

    "Do today what others won't, so tomorrow you can do what others can't."

Viewing 12 replies - 1 through 12 (of 12 total)
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  • #553729

    I took this exam earlier this quarter but apparently my study method might have worked because I remembered how to calculate it!

    So you should have for the current year

    9 Selling Price

    3 Variable Costs

    6 Contribution Margin

    Fixed costs from p/y was 105,000. For current year you add 10%.

    105,000*1.10 = 115,500.

    115,500 / 6 = 19,250.

    They typo-ed the 6 to a 3. There have been a few other errors in some of their problems as well.

    FAR - 87
    AUD - 88
    BEC - 88
    REG - waiting

    #553730

    I took this exam earlier this quarter but apparently my study method might have worked because I remembered how to calculate it!

    So you should have for the current year

    9 Selling Price

    3 Variable Costs

    6 Contribution Margin

    Fixed costs from p/y was 105,000. For current year you add 10%.

    105,000*1.10 = 115,500.

    115,500 / 6 = 19,250.

    They typo-ed the 6 to a 3. There have been a few other errors in some of their problems as well.

    FAR - 87
    AUD - 88
    BEC - 88
    REG - waiting

    #553731
    mike01
    Participant

    Variable cost are also increasing by 33.3%. 2.25*133.3%=2.99925

    Fix cost increase 5.25*1.10%=5.775*20000=115500 FC

    9 sales price-VC 2.99925=6.0075=6.00

    115500 FC/6.00=19250 6.00 dollars is what is left to cover fix cost. Thats what I come up with,

    #553732
    mike01
    Participant

    Variable cost are also increasing by 33.3%. 2.25*133.3%=2.99925

    Fix cost increase 5.25*1.10%=5.775*20000=115500 FC

    9 sales price-VC 2.99925=6.0075=6.00

    115500 FC/6.00=19250 6.00 dollars is what is left to cover fix cost. Thats what I come up with,

    #553733
    Anonymous
    Inactive

    Hey Jpino.. sometimes Becker makes mistakes.. However, I do think that when we notice the mistake we never forget the question.. in some weird way I wonder if they do it on purpose. I noticed lots of mistakes. I've seen other people notify them of BIG mistakes and Becker responds in email with the correct answer and issue an apology (to the one student who emailed them). But they do not correct the issue on their “becker updates”… I wonder ?? Why would you want your students to be miss-informed?

    #553734
    Anonymous
    Inactive

    Hey Jpino.. sometimes Becker makes mistakes.. However, I do think that when we notice the mistake we never forget the question.. in some weird way I wonder if they do it on purpose. I noticed lots of mistakes. I've seen other people notify them of BIG mistakes and Becker responds in email with the correct answer and issue an apology (to the one student who emailed them). But they do not correct the issue on their “becker updates”… I wonder ?? Why would you want your students to be miss-informed?

    #553735
    joohj1187
    Participant

    Yep, the answer is 19250. Since contribution margin per unit is now $6 ($9 – $3) – i guess they made the typo, but 19250 is the correct answer.

    FAR: 8/5/2010 - 89
    AUD: 8/24/2010 - 92
    REG: 10/11/2010 - 94!!
    BEC: 11/30/2010

    #553736
    joohj1187
    Participant

    Yep, the answer is 19250. Since contribution margin per unit is now $6 ($9 – $3) – i guess they made the typo, but 19250 is the correct answer.

    FAR: 8/5/2010 - 89
    AUD: 8/24/2010 - 92
    REG: 10/11/2010 - 94!!
    BEC: 11/30/2010

    #553737
    JPino23
    Participant

    Thanks for the input and all of your help guys! I appreciate it!

    REG 94, AUD 87, FAR (10/8), BEC (11/24)

    "Do today what others won't, so tomorrow you can do what others can't."

    #553738
    JPino23
    Participant

    Thanks for the input and all of your help guys! I appreciate it!

    REG 94, AUD 87, FAR (10/8), BEC (11/24)

    "Do today what others won't, so tomorrow you can do what others can't."

    #553739
    Anonymous
    Inactive

    I just completed the BEC section of Becker (exam is tomorrow) and I noticed about a total of 3-4 mistakes in the homework questions along the way. This makes me doubt myself sometimes, so it is nice to hear that others have ran into mistakes as well!

    #553740
    Anonymous
    Inactive

    I just completed the BEC section of Becker (exam is tomorrow) and I noticed about a total of 3-4 mistakes in the homework questions along the way. This makes me doubt myself sometimes, so it is nice to hear that others have ran into mistakes as well!

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