Do you agree with the notion of value costing for the 21st Century organizations. Why or Why Not? Why types of situations may be more appropriate for application of the some of the "tried and true" costing methods of the 20th Century? Are these industry or firm specific? Is Cost-Volume-Profit Analysis still relevant in t
P18-5A Poole Corporation has collected the following information after its first year of sales. Net sales were $1,600,000 on 100,000 units; selling expense $240,000 (40% variable and 60% fixed); direct materials $511,000; direct labor $285,000; administrative expense $280,000 (20% variable and 80% fixed); manufacturing overhead
12.18 CVP analysis-what-if questions; sales mix issue. Camden Metal Co. makes a single product that sells for $84,000 per unit. Variable costs are $54.00 per unit, and fixed costs total $120,000 per month. Required: A. Calculate the number of units that must be sold each month for the firm to break even. B. Calculate oper
12.2 Cost classifications. For each of the following costs, check the column(s) that most likely to apply: Cost Variable Fixed Raw materials Staples used to secure packed boxes of product Plants janitor's wages Order processing clerks' wages Advertising expenses Production workers' wages Production supervisiors'
Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following data relates to the period just ended when the company produced and sold 42,000 speaker sets: Sales $3,360,000 Variable Costs 840,000 Fixed Costs 2,280,000 Management is considering relocati
Ignore income taxes and fill in the missing data for each line. Sales Variable Total Fixed Net Break-Even Revenue Exp. Cont. Margin Exp Income Sales Rev. 1. ______ $40,000 _________ $30,000 ________ $40,000 2. $80,000 _______ $15,000 _______ ___
15.12.A You are a hard-working analyst in the office of financial operations for a manufacturing firm that produces a single product. You have developed the following cost structure information for this company. All of it pertains to an output level of 10 million units. Return on operating assets = 25% Operating asset turn
Using both the Plantwide and the Activity-based costing approach, calculate the unit cost for each product. Direct Labour Hours should be used as the basis for applying overheads.
These 2 questions are proving to be too much for me and I am running short of time!! I really need to see how one would work through these calculations, step by step and then understand why. Question 1: The Yandina Manufacturing Company Ltd produced 40,000 lamps in 2008. The following cost data were obtain
Molly Dymond and Kathleen Taylor are considering the possibility of teaching swimming to kids during the summer. A local swim club opens its pool at noon each day, so its available to rent during the morning. The cost of renting the pool during the 10-week period for which Molly and Kathleen would need it is $1,700. The pool wou
Phonetronix is a small manufacturer of telephone and communications devices. Recently, company management decided to investigate the profitability of cellular phone production. They have three different proposals to evaluate. Under all the proposals, the fixed costs for the new phone would be $110,000. Under proposal A, the sell
Missing data- Basic CVP Concepts
Memofax, Inc., produces memory enhancement kits for fax machines. Sales have been very erratic, with some months showing a profit and some months showing a loss. The company's contributions format income statement for the most recent month is given below. Sales (13,500 units at $20 per unit) . . . . . . . . . . . . . . . . . .
Shirts Unlimited operates a chain of shirt stores around the country. The stores carry many styles of shirts that are all sold at the same price. To encourage sales personnel to be aggressive in their sales efforts, the company pays a substantial sales commission on each shirt sold. Sales personnel also receive a small basic
You have been given a proxy income statement for Bruce Wayne Corporation for the fiscal year 2003. It is summarized below: Bruce Wayne Corporation Income statement For the Year Ended November 31st, 2003 Revenue 650000 Cost o
Sun Inc. sells a single product and has no inventory. The company's 2006 income statement is given below. Sales (4,000 units) $800,000 Less flexible (variable) expenses $200,000 Less capacity-related (fixed) expenses $300,000 In an attempt to improve performance, Jo, the manager is considering a number of alternativ
Chapter 15: Discussion Questions 9-11, 16, and 18 9. How do variable costs and fixed costs differ? Give an example of each. 10. Analyze your personal expenses on a variable and fixed basis. What are some of your personal fixed costs and variable costs? What would cause them to change? 11. What is C-V-P analysis used for
Part 10: Electra Corporation Electra Corporation manufactures and sells two products: A and B. The operating results of the company are as follows: Product A Product B Sales in units 2,000 3,000 Sales price per unit $10 $5 Variable costs per unit 7 3 In addition, the company incurred total fixed costs in the amo
Problems: Given the following cost and activity observations for Sanchez Company's utilities, use the high-low method to calculate Sanchez's variable utilities costs per machine hour. Cost Machine Hours May $8,300 15,000 June 10,400 20,000 July
2-61 CVP in a Modern Manufacturing Company on pg. 87 A division of Hewelett-Packard Company changed its production operations from one where a large labor force assembled electronic components to an automated production facility dominated by computer-controlled robots. The change was necessary because of fierce competiti
Company is Starbucks. Review the following site for a summary of the computation of contribution margin. Calculating the Break-Even Point and the Contribution Margin, Retrieved October 28, 2008 from: http://members.tripod.com/devryproject/BreakEven.htm This site is a detailed slide presentation of cost-volume-profit analysi
The Shoe Company operates a chain of shoe stores. The stores sell ten different styles of inexpensive men 's shoes with identical unit costs and selling prices. A unit is defined as a pair of shoes. Each store has a store manager who is paid a fixed salary. Individual salespeople receive a fixed salary and a sales commission
Introduction: The Walkrite Shoe Company operates a chain of stores that sell 10 different styles of shoes with identical unit costs and selling prices. A unit is defined as a pair of shoes. Each store has a store manager who is paid a fixed salary. Individual salespersons receive fixed salaries and sales commissions. Walkrite
Profit Analysis. A consumer electronics firm produces a line of battery rechargers for cell phones. The following distributions apply: Unit price - triangular with a minimum of $18.95, most likely value of $24.95, and maximum of $26.95 Unit cost - uniform with a minimum of $12.00 and a maximum of $15.00 Quantity sold -
How does a graph of a flexible budget compare to a CVP graph? A) Fixed costs appear differently. B) Variable costs appear differently. C) Sales revenues are not shown on a flexible budget graph. D) The two are graphed identically.
The Bruggs & Strutton Company manufactures an engine for carpet cleaners called the "Snooper." Budgeted cost and revenue data for the "Snooper" are given below, based on sales of 40,000 units.
I need help with these 2 sample problems. Thanks. The Bruggs & Strutton Company manufactures an engine for carpet cleaners called the "Snooper." Budgeted cost and revenue data for the "Snooper" are given below, based on sales of 40,000 units. Cost of goods sold consists of $800,000 of variable costs and $320,000 o
Cost, Volume, and Profit Questions 1. How should mixed costs be classified in CVP analysis? What approach is used to effect the appropriate classification? 2. "Cost-volume-profit (CVP) analysis is based entirely on unit costs.?Do you agree? Explain. 3. Linda Fearn asks your help in constructing a CVP graph. Explain to
Each problem is unrelated to the others. 1. Given: Selling price per unit, $20; total fixed expenses, $5,000; variable expenses per unit, $15. Find break-even sales in units. 2. Given: Sales, $40,000; variable expenses, $30,000; fixed expenses, $7,500; net income, $2,500. Find break-even sales in dollars. 3. Given: Se
1. How should mixed costs be classified in CVP analysis? What approach is used to effect the appropriate classification? 2. "Cost-volume-profit (CVP) analysis is based entirely on unit costs." Do you agree? Explain. 3. Linda Fearn asks your help in constructing a CVP graph. Explain to Linda (a) how the break-even point is
CollegePak Company produced and sold 60,000 units during the year just ended at an average price of $20 per unit. Variable manufacturing costs were $8 per unit, and variable marketing costs were $4 per unit sold. Fixed costs amounted to $180,000 for manufacturing and $72,000 for marketing. There was no year-end work-in-proces
1. Exercise in Cost-Volume-Profit Relationships Barkins Moving Company specializes in hauling heavy goods over long distances. The company's revenues and expenses depend on revenue miles, a measure that combines both weights and mileage. Summarized budget data for next year are based on predicted total revenue miles of 800,000.