Managerial accounting - Trend Analysis
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Analysis shows that Zodiac Corporation incurred the following five-year gross margin and cost histories in serving customer number 128.
Year 1 Year 2 ` Year 3 Year 4 Year 5
Gross Margin $602,000 $638,000 $636,000 $652,000 $670,000
Cost of engineering changes 6,600 12,120 7,000 7,200 80,250
Special packaging 66,200 73,360 82,600 78,100 80,400
1. Prepare a trend analysis (in terms of percentage of gross margin) for these two customer relate costs.
2. What different conclusions might management draw about the behavior of these two costs?
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Analysis shows that Zodiac Corporation incurred the following five-year gross margin and cost histories in serving customer number 128.
Year 1 Year 2 ` Year 3 Year 4 Year 5
Gross ...
Purchase this Solution
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