QUESTION 1: (9 Marks)
Kissimmee Paint Co. reported the following data for the month of July. There were no beginning inventories
and all units were completed (no work in process).
Total Cost Number of Units Unit Cost
Manufacturing costs:
Variable DH 465,000 30,000 DH 15.50
Fixed 210,000 30,000 7.00
Total DH 675,000 DH 22.50
Selling and administrative expenses:
Variable DH 2 per unit sold
Fixed DH 39,000
In the month of July, 28,000 of the 30,000 units manufactured were sold at a price of DH 80 per unit.
(a) Prepare a variable costing income statement.
(b) Prepare an absorption costing income statement.
(c) Briefly explain why there is a difference in income from operations
between the two methods.
Dr. Sawsan Halbouni
QUESTION 2: (10 Marks)
A- (4 Marks)
Based on the following production and sales data of Shingle Co. for March of the current year, prepare (a)
a sales budget and (b) a production budget.
Product T Product X
Estimated inventory, March 1 28,000 units 20,000 units
Desired inventory, March 31 32,000 units 15,000 units
Expected sales volume:
Area I 320,000 units 260,000 units
Area II 190,000 units 130,000 units
Unit sales price DH 6 DH 14
Dr. Sawsan Halbouni
B- (6 Marks)
The treasurer of Systems Company has accumulated the following budget information for the first two
months of the coming year:
March April
Sales. DH 450,000 DH 520,000
Manufacturing costs 290,000 350,000
Selling and administrative expenses 41,400 46,400
Capital additions 250,000 —
The company expects to sell about 35% of its merchandise for cash. Of sales on account, 80% are expected
to be collected in full in the month of the sale and the remainder in the month following the sale. One-fourth
of the manufacturing costs are expected to be paid in the month in which they are incurred and the other
three-fourths in the following month. Depreciation, insurance, and property taxes represent DH 6,400 of the
probable monthly selling and administrative expenses. Insurance is paid in February and a DH 40,000
installment on income taxes is expected to be paid in April. Of the remainder of the selling and administrative
expenses, one-half are expected to be paid in the month in which they are incurred and the balance in the
following month. Capital additions of DH 250,000 are expected to be paid in March.
Current assets as of March 1 are composed of cash of DH 45,000 and accounts receivable of DH 51,000.
Current liabilities as of March 1 are composed of accounts payable of DH 121,500 (DH 102,000 for materials
purchases and $19,500 for operating expenses). Management desires to maintain a minimum cash balance of
DH 20,000.
Prepare a monthly cash budget for March and April.
Dr. Sawsan Halbouni
QUESTION 3 (6 Marks)
A: (3 Marks)
Brancati Inc. produces and sells two products. Data concerning those products for the most recent
month appear below:
Product W07C Product B29Z
Sales……………………………….. DH 25,000 DH 27,000
Variable expenses…………….. DH 7,000 DH 8,600
Fixed expenses for the entire company were DH 32,860.
a. Determine the overall break-even point for the company. Show your work!
b. If the sales mix shifts toward Product W07C with no change in total sales, what will
happen to the break-even point for the company? Explain.
B: (3 Marks)
Lubke Corporation’s contribution format income statement for the most recent month follows:
Sales ………………………………..
Variable expenses……………… 236,500
Contribution margin ………….. 269,500
Fixed expenses…………………. 241,700
Net operating income ………… DH 27,800

a. Compute the degree of operating leverage to two decimal places.
b. Using the degree of operating leverage, estimate the percentage change in net operating
income that should result from a 3% increase in sales.

Sample solution

Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell. 

In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.

God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.

Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.

To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.



Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.

Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies4(8), 487.

Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.