ACCTG 101 Assignment 01 Due 08 April 2013‚ 4 p.m. Assignment 01 will be marked out of 40 marks and is worth 4% of your final grade. Overall Presentation Communication: A high standard of written expression and presentation is expected of your assignment. Correct spelling and grammar are essential. Discussions should be concise‚ structured in a logical order‚ and relevant to the question. Refer to The Business of Writing: Written Communication Skills for Commerce Students by E. Manalo‚ G. Wong-Toi
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change in sales can be computed by multiplying the contribution margin by the dollar change in sales. F 12. In two companies making the same product and with the same total sales and total expenses‚ the contribution margin ratio will be higher in the company with a higher proportion of fixed expenses in its cost structure. T 13. All other things the same‚ an increase in variable expense per unit will reduce the break-even point. F 14. The margin of safety in dollars equals the excess of actual sales
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some of the pioneering work by gaining some freezer space in Boston supermarkets. It is possible that TPF may have to give up more than a 25% gross margin to get freezer space. Assuming that food brokers do get distribution into supermarkets‚ the following breakdown shows recommended selling prices (as well as‚ variable costs and contribution margins). Price to consumer: based on the notion that Show Circuit will be sold as a premium priced item
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Prestige Telephone Company I. Case Background Prestige Data Services (PDS)‚ a subsidiary of Prestige Telephone Company (PTC)‚ has been experiencing bottom line losses for the two years it has been operating since 1995. The subsidiary has been performing all the data processing for the telephone company and selling computer services to other companies and organizations. Susan Bradley‚ the subsidiary manager was preparing for a meeting with Daniel Rowe‚ president of Prestige Telephone
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variance had been generated to offset gross margin Explanation Required On the Income Statements under Full costing and Variable costing some line items indicate differences. LANDAU COMPANY Income Statements June and July in US Dollars June July Full Variable Full Variable Costing Costing Costing Costing Sales Revenue 865‚428 865‚428 931‚710 931‚710 Cost of sales at standard 484‚640 337‚517 521‚758 363‚367 Standard gross margin 380‚788 527‚911 409‚952 568‚343 Production
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included in the computation of contribution margin on page 33? 3. Perform two separate computation of Benetton’s break-even point in euros. For the first computation‚ use data from 2003.For the second computation‚ use data from 2004. Why do the numbers that you computed differ from one another? 4. What sales volume would have been necessary in 2004 for Benetton to attain a target income from operations of € 300 million? 5. Compute Benetton’s margin of safety using data from 2003
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Contents 1-Introduction 2 2-1 Cost Behavior‚ benefits and difficulties ahead 3 2-2 Using CVP as a mean for Prediction 4 3- Conclusion 6 4- Reference 6 1-Introduction A good understanding of the relationship between cost and activities in a company is necessary for managers in every type of organization and this clothing manufacturing company is concerned because they do not have this understanding and what benefits it has for guiding managers to understand the changes
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Cost-Volume-Profit Analysis Self-Test Questions 1. The difference between the sales price and the total variable costs is the contribution margin. (D) 2. The breakeven volume in units (perfume sticks) for 2005 is TR-VC-FC=PBT MR=900000/1800 = 500 TR-VC-FC=0 VC/Q = 495000/1800 = 275 Q*MR - Q(VC/Q) = FC Q = _____FC_____ MR-VC/Q Q = 247500/(500 275) Q=1100 Therefore (B) 3. If sales volume is expected to be 2100 units with prices/costs same‚ after-tax net income is expected
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Table of Contents I. INTRODUCTION 2 II. STATEMENT OF PROBLEM 2 III. OBJECTIVES 3 IV. SCENARIOS 3 Question 1 5 Question 2 7 Question 3 10 Question 4 12 Question 5 13 Question 6 14 Question 7 16 V. CONCLUSION 18 Bibliography 19 INTRODUCTION The case is about manufacturing company‚ Hospital Supply‚ Inc.‚ that produced hydraulic hoists for the local market. The hydraulic hoist is useful to the hospital for moving bedridden patients
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Wood Crafts‚ Inc. is a manufacturer of furniture for specialty shops throughout the Northeast and has an annual sales volume of $12 million. The company has four major product lines: bookcases‚ magazine racks‚ end tables‚ and bar stools. Each line is managed by a production manager. Since production is spread fairly evenly over the 12 months of operation‚ Sara McKinley‚ Wood Crafts’ controller‚ has prepared an annual budget divided into 12 periods for monthly reporting purposes. Wood Crafts uses
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