1) A firm sells a product for $30.50 each and the unit variable cost is $12.20. The fixed costs are $750,000. Required: 1) the break even in units and dollars. 2) Assume the firm sold 50,000 units last year- present a contribution format income statement for that level of activity. 3) If the owners wanted income of $2
Okay back to Mrs. McCarthy you advise her to invest in bulk purchasing. What you did not know is that is she was working off her savings. Also she was not a well person (common for elderly people). And she decides to die a week later (also common amongst elderly) what do you tell the heirs about their inheritance, which is now b
Can you help me get started with the following: Discuss the importance of cost tracing? Cost Allocation? How do they differ and how are them similar? Define a cost driver? Choose a day to day event that you might use these tools to properly budget yourself, and to see where you might be overspending or underspending. Discu
I need help with a question. Variance between budget projections and budget performance is inevitable. Is a proactive application of cost measurement and corrective actions a realistic approach to minimize variance?
During a coffee-room debate among several young MBAs who had recently graduated, one of the young executives flatly stated, "The most this company can lose on its Brazilian division is the amount it has invested (its fixed costs)." Not everyone agreed with this statement. In what sense is this statement correct? Under what circ
1. Define and discuss the direct methods used for demand estimation 2. Describe and discuss the relationships of the following: production functions, technical and economic efficiency, variable and fixed imputes of production, and fixed and variable proportions 3. Discuss the advantages and disadvantages of Short-Run and Long-
Calculating Cost Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period is $800,000 and 25,000 hours, respectively. Information about the company's products follows.
Can you help me out with the following questions: 1.Thomas Selling, an expert on nuclear strategy and arms control, observed in his book The Strategy of Conflict (Cambridge, MA: Harvard University Press, 1960), " The power to constrain an adversary depends upon the power to bind oneself." Explain this statement using the conc
1. What test determines the power of a resources competitive strength? 2. Instead of trying to match the resource strengths of rivals, what option(s) should a company consider to enhance its competitive power in the marketplace?
Instructional Case: Estimating Learning-Curve Functions for Managerial Planning, Control, and Decision-Making
Planning and control in the decision making process. Review this article: Stout, David E and Juras, Paul E., (2009). Instructional Case: Estimating Learning-Curve Functions for Managerial Planning, Control, and Decision-Making. Find another article on a similar topic and discuss how accounting information is used for pl
Slick Corporation is a small producer of synthetic motor oil. During May, the company produced 5,000 cases of lubricant. Each case contains twelve quarts of synthetic oil. To achieve this level of production, Slick purchased and used 16,500 gallons of direct materials at a cost of $20,514. It also incurred average direct labor c
1. Marcus Company uses an activity-based costing system with three activity cost pools: assembly, set up and other. The company has provided the following data concerning its costs and its activity based costing system. Wages and Salaries $260,000; Depreciation $220,000; Utilities $140,000. The costs were consumed as follows:
Titan Snow Shovel Company (TSSC) has a pricing policy of cost plus 40% to cover all costs. They base their costing on the expectation that they will sell 50,000 shovels at $98 each. Unit level costs are $40 per unit. Product and batch level costs together equal $500,000. Facility level costs are a $20.00 per unit b
Rosenblatt Enterprises used decision tree analysis and cost-benefit analysis in their decision to keep open their current plant. The quantitative costs of keeping the plant open were $5,000,000, while the quantitative benefits of keeping the plant open were only $3,000,000. Rosenblatt decides to keep the plant open. The decision
The suppliers account had a balance of $1,460 at the beginning of the month and $1,940 t the end of the month. The cost of supplies used during the month was $6,320. How would one calculate the cost of supplies purchased during the month?
Beddingfield Machine and Electronic Works (BMEW), spent $85,000 last year pouring a concrete pad adjacent to their central machine shop in order to park 18-wheel trailers that they had hoped to begin repairing last year for Peden Trucking under a new contract. In the fall Peden Trucking declared bankruptcy and closed it's doors
I need help with classifying weather are not these items are variable or fixed cost, direct or indirect cost, are controllable or uncontrollable cost. 1.Raw materials. 2.Staples used to secure packed boxes of the product. 3.Plant janitor's wages. 4.Order processing clerk's wages. 5.Advertising expenses. 6.Production work
14. Corresponds to CLO 4(b) Ferguson Molding Company produces custom bottle caps and jar covers for large cosmetic companies. Each customer owns the custom-made molds that are used for the caps and jar covers, so caps are produced only to customer order. Each order requires the setting of molds in molding machines. Two full time
Big Al Pizza Inc, a new subsidiary of Big Al's Pizza Emporium has been established to produce partially baked, flash frozen , 16 inch meat pizzas to be sold wholesale to grocery and convenience stores and school cafeterias. As a new entrant to the market, the company's goal is to produce and sell 319,500 pizzas in its first
An analyst has gathered the following data about a company: Average receivables collection period of 37 days. Average payables payment period of 30 days. Average inventory processing period of 46 days. What is their cash conversion cycle? A) 113 days. B) 53 days. C) 45 days.
Barnes Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled: Product # of Setups # of Components # of Direct Labor Hours Standard 22 8 375 Delu
Name the units of service on which cost-based payers may pay providers.
Kwikeze Company set the following standard costs for one unit of its product. Direct materials ((4.0 Ibs. @ $6.0 per Ib.) $ 24.00 Direct labor (1.8 hrs. @ $11.0 per hr.) 19.80 Overhead (1.8 hrs. @ $18.50 per hr.) 33.30 Total standard cost $ 77.10
Your company has developed a drug called Matrox that is an effective treatment for migraine headaches. You have just discovered that it can also be used for organ transplant patients to reduce the risk of organ rejection. The demand for migraine medications is considerably more elastic than the demand for drugs to reduce the ri
Compute ROI per Unit 1. Travis corporation produces high- performance rotors. It expects to produce $50,000 rotors in the coming year. It has invested $ 1,000,000 to produce rotors. The company has a required return on investment of 18% what is its ROI per unit? Compute markup percentage 2. Shandling corporation produces mi
Redstone Company spent $190,000 developing a new process, $40,000 in legal fees to obtain a patent, and $91,000 to market the process that was patented. How should these costs be accounted for in the year they are incurred?
1. The cost of an intangible asset includes all of the following except a. purchase price. b. legal fees. c. other incidental expenses. d. all of these are included. 2. When a patent is amortized, the credit is usually made to a. the Patent account. b. an Accumulated Amortization account. c. a Deferre
The following are production and cost data for two products, X and Y. Product X Product Y Contribution margin per unit $450 $280 Machine set-ups needed per unit? 25 14 The company can only perform 14,000 set-ups each period yet there is unlimited demand for each product. What is the maximum contribution margin for t
Several years ago, a taxpayer purchased 7 year recovery property as follows: May 15 - Black hoe - 475,000 Oct 9 - Tractor - 575,000 What was the cost recovery deduction for the Black Hoe in year 4?
Jersey Subs, Inc. wants to find an equation to estimate monthly utility costs. Jersey Subs has been in business for one year and has collected the following cost data for utilities: (see attached table) a. Which of the preceding costs is variable? Fixed? Mixed? Explain. b. Using the high-low method, determine the cost