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    Analysis of income effects from eliminating departments

    See pdf file. Exercise 10-7: Analysis of income effects from eliminating departments L.O. C1, A1 Dept. M Dept. N Dept. O Dept. P Dept. T Sales $63,000 $ 35,000 $56,000 $42,000 $ 28,000 Expenses Avoidable 9,800 36,400 22,400 14,000 37,800 Unavoidable 51,800 12,600 4,200 29,400 9,800 Total expenses 61,600 49,000 26,600 43

    Colt Company Contribution

    See pdf file. Exercise 10-9: Sales mix determination and analysis L.O. C1, A1 Colt Company owns a machine that can produce two specialized products. Production time for Product TLX is two units per hour and for Product MTV is five units per hour. The machine's capacity is 2,750 hours per year. Both products are sold to a s

    Fixed, Total Variable and Total Costs

    1. A firm has fixed costs of $60 and variable costs as indicated in the table. a. Graph total fixed cost, total variable cost, and total cost. Explain how the law of diminishing returns influences the shapes of the variable-cost and total-cost curves. b. Graph AFC, AVC, ATC, and MC. Explain the derivation and shape of each

    GDP, CPI and Elasticity of Goods

    1. The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP. Indicate in each calculation whether you are inflating or deflating the nominal GDP data. Year Nominal GDP Billions, Price Index (1996 = 100) Real GDP, Billions 1960 $ 527.4 22.19 $____ 1968 911.5 26.2

    After Tax Cash Flow from the Sale of the Equipment

    Salvage Value. Quick Computing installed its previous generation of computer chip manufacturing equipment 3 years ago. Some of the older equipment will become unnecessary when the company goes into production of it's new product. The obsolete equipment, which originally cost $40 million, has been depreciated straight-line over a

    Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-hour week and

    Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-hour week and a 50-week year, regardless of the number of haircuts. Rent and other fixed expenses are $1,750 per month. Hair shampoo used on all

    Taxable income for an individual is defined as

    Please some help with the attached questions. Would be greatly appreciated. Multiple Choice 1. Taxable income for an individual is defined as: a. AGI reduced by itemized deductions. b. AGI reduced by personal and dependency exemptions. c. total income reduced by deductions for AGI. d. AGI reduced b

    Contribution margin

    Why would the vice president of a company who receives an annual bonus based on profitability of the company want you to create a income statement that classified startup costs, research costs and development costs as a product costs? What are the ethical considerations of reporting startup costs as product costs? As a cor

    LBG Co: Gain and Loss on Equipment

    LBG Co. had a sheet metal cutter that cost $72,000 on January 5, 1999. This old cutter had an estimated life of ten years and a salvage value of $12,000. On April 3, 2004, the old cutter is exchanged for a similar cutter (a similar asset) with a market value of $36,000. LBG Co. also received $9,000 cash. Assume that the last fis

    Depreciation Amount

    Jantz Corporation purchased a machine on July 1, 2001, for $250,000. The machine was estimated to have a useful life of 10 years with an estimated salvage value of $14,000. During 2004, it became apparent that the machine would become uneconomical after December 31, 2008, and that the machine would have no scrap value. Accumulat

    Predetermined Overhead Rate and Under Applied Overhead

    Case 1 ("Predetermined Rate") Hoy Heating and Air Conditioning Company repairs heating and cooling equipment. Each time a service technician completes a job, a time sheet is turned in and the job cost is computed. The company calculates the cost of each job by adding the cost of any materials used on the job, the labor cost o

    Manufacturing Overhead

    Is it true or false statement? Including manufacturing overhead costs in product costs ensures that each product will earn a profit.

    High-Low method Cost Formula

    Johnson Company has observed that at an activity level of 5,000 units the cost for maintenance is $6,500 and at 10,000 units the cost for maintenance is $9,000. Using the high-low method, the cost formula for maintenance is $4,000 plus $.50 per unit $3,000 plus $.60 per unit $.90 per unit $1.30 per unit

    Contribution Margin

    Sales for a retail store were $250,000. Net Operating Income totaled $30,000 and cost of goods sold was $110,000. If the contribution margin was $100,000. What would the total variable selling and administrative costs have been?

    Contribution Margin

    Stuart Company is a merchandising company. During the next month, the company expects to sell 450 units. The company has the following revenue and cost structure: Selling price per unit.......... $230 Cost per unit...................... $120 Sales commission............... 12% of sales Advertising expense.......

    Contribution Margin

    Cranbrook Company has the following data for the month of March: Sales.......................................................... $30,000 Fixed manufacturing overhead................. $5,500 Direct labor................................................ $7,250 Fixed selling expense......................

    Predetermined Overhead Rate

    If a company in computing its predetermined overhead rate included its factory insurance cost twice. Then does this result in the ending balance: of Finished Goods to be understated or the credits to the Manufacturing Overhead account to be understated or the Cost of Goods Manufactured to be overstated or the Net Operating

    Manufacturing Overhead

    Which of the following would most likely be included as part of manufacturing overhead in the production of a wooden table? The amount paid to the individual who stains the table. The commission paid to the salesperson who sold the table. The cost of glue used in the table. The cost of the wood used in the table. I

    Individual Form 1040 for 2005

    I:4-60 Alice Johnson, Social Security number 222-23-3334, is a single taxpayer and is employed as a secretary by State University of Florida. She has the following items pertaining to her income tax return for 2005: 1) Received a $20,000 salary from her employer, who withheld $3,000 federal income tax. 2) Received a gift

    Profit/Loss in selling finished or semi finished product

    Vannorman Corporation processes sugar beets in batches. A batch of sugar beets costs $75 to buy from farmers and $11 to crush in the company's plant. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. The beet fiber can be sold as is for $11 or processed further for $20 to make the end produc

    Company's net operating income if special order is accepted

    Gallerani Corporation has received a request for a special order of 5,200 units of product A90 for $20.8 each. Product A90's unit product cost is $14.6, determined as follows: Direct materials $ 5.6 Direct labor 4.2 Variable manufacturing overhead 1.8 Fixed manufacturing overhead 3 Unit product cost $14.6 Direct

    Profit for reworking material rather than selling it as scrap

    Hodge Inc. has some material that originally cost $73,300. The material has a scrap value of $57,100 as is, but if reworked at a cost of $1,600, it could be sold for $54,400. What would be the incremental effect on the company's overall profit of reworking and selling the material rather than selling it as is as scrap? -$4