ACTIVITIES:

General Instructions: Provide the requirements needed. Write Legibly. NO

erasures.

A. For the multiple choice, write the correct letter on the space provided BEFORE
the number.
B. For the T/F Part, write the full word TRUE if the statement is correct and
FALSE if otherwise on the space provided AFTER each statement.
C. For the essay, write your answers on the BOX provided. However, if the box is
not enough, you can use the back part of the bond paper or any blank space
that may seem appropriate.
D. For the problem solving, write your answers on the BOX provided.

MIDTERM QUIZ
1. King Company has three Stores: Hello , Love, and Goodbye. during August, the variable
expenses in Store Hello were P90,000 and the contribution margin ratio was 25%. Store
Love had a contribution margin of P27,000 and a contribution margin ratio of 20%.
Store Goodbye had variable expenses of P120,000 and a variable expense ratio of 60%
of sales. For August, Kings Company's sales were:
A) P318,000
B) P455,000
C) P485,000
D) P555,000

2. Kings Company has two divisions, Jack and Bill. During March, the contribution margin
in Jack was P30,000. The contribution margin ratio in Bill was 40%, its sales were
P125,000, and its segment margin was P32,000. The common fixed expenses in the
company were P40,000, and the company's net operating income was P18,000. The
segment margin for Division Jack was:
A) P26,000
B) P32,000
C) P8,000
D) P58,000

3. Kings Inc. consists of two districts, A and B. The company as a whole had sales of
P400,000, a contribution margin ratio of 25% and a combined segment margin totaling
P35,000. District A had sales of P90,000 during September, a contribution margin ratio
of 45%, and a segment margin of P16,000. If the net operating income of Kings Inc. for
September is P12,000, the traceable fixed expenses in District B must have been:
A) P23,000
B) P24,500
C) P49,000
 D) P40,500

4. Kings Company has two product lines, C and J. Line C has sales of P100,000 during
March, a segment margin ratio of 19%, and traceable fixed expenses of P20,000. The
company as a whole had a contribution margin ratio of 25% and P105,000 in total
contribution margin. Based on this information, total variable expenses for product J
must have been:
A) P61,000
B) P176,000
C) P315,000
D) P254,000

5. Kings Corporation has two divisions: the BAD Division and the GOOD Division. The
corporation's net operating income is P10,700. The BAD Division's divisional segment
margin is P76,100 and the GOOD Division's divisional segment margin is P42,300. What
is the amount of the common fixed expense not traceable to the individual divisions?
A) P86,800
B) P107,700
C) P53,000
D) P118,400

6. Last year a company had sales of P400,000, a turnover of 2.4, and a return on
investment of 36%. The company's net operating income for the year was:
A) P144,000
B) P120,000
C) P80,000
D) P60,000

7. Kings Company had the following results during June: net operating income, P2,500;
turnover, 4; and ROI, 20%. Kings Company's average operating assets were:
A) P50,000
B) P200,000
C) P12,500
D) P10,000

8. The following information relates to last year's operations at the Bread Division of
Kings Bakery, Inc.:
Residual income ............................P12,000
Net operating income .................. P60,000
Sales ............................................P300,000
Average operating assets .............P400,000
What was the Bread Division's minimum required rate of return last year?
 A) 12%
B) 4%
C) 15%
D) 20%

9. Kings Corporation has two divisions: the East Division and the West Division. The
Corporation’s net operating income is P93,200. The East Division's divisional segment
margin is P223,200 and the West Division's divisional segment margin is P15,900.
What is the amount of the common fixed expense not traceable to the individual
divisions?
A) P316,400
B) P145,900
C) P109,100
D) P239,100