Manufacturing Costs [LO1] Your Boat‚ Inc.‚ assembles custom sailboats from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a Gig Harbor‚ Washington‚ boathouse. Below are listed some of the costs that are incurred at the company. Required: For each cost‚ indicate whether it would most likely be classified as direct labor‚ direct materials‚ manufacturing overhead‚ selling‚ or an administrative cost. 1.
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skeptical about the cost and large contractors. Large Contractors are the primary market‚ they are interested in reducing costs‚ and can afford the more expensive pads‚ and additionally they are more likely to see the potential value in the product. There are approximately 13‚000 active machines in this group. This initial market is likely to understand the value and be accepting of the $900 price. Cost Using the equipment CMI currently has in place pads can be produced at a variable cost of $44.44 for
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Analysis 1 September 29‚ 2010 Melissa Ng Variable costs are made up of cost of goods sold plus sales commissions. Fixed costs are made up of salaries‚ advertising‚ administrative expenses‚ rent‚ depreciation‚ and miscellaneous expenses. Assuming all questions are answered independently: 1. Income statement using the contribution approach: | 2004 | 2005 | 2007 | Sales | $8‚583‚000 | $8‚102‚000 | $10‚711‚000 | Less: Variable Costs | $4‚669‚000 | $4‚456‚000 | $5‚998‚000 |
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Static Budget (A) 10‚000 units Actual Results (B) 16‚000 units Static Budget Variance (A) – (B) Revenue Variable costs: Materials Labor Overhead Total Contribution margin Fixed costs: Manufacturing Overhead Marketing costs Total fixed costs Operating income $40 15 10 5 30 $10 $400‚000 150‚000 100‚000 50‚000 300‚000 100‚000
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Unit 1 Business- Revision * Enterprise- The ability to handle uncertainty and deal efficiently with change. * Entrepreneur- someone who has a flair for business ideas and has the confidence to take the risks involved in setting up a business. * Successful entrepreneurs: * Passion * Motivate people around them * Determined to succeed * Self-belief * Common characteristics of successful entrepreneurs: * Self-confidence- believe in your ideas;
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JIT benefits‚ as framed by Garrison and Noreen (2000)‚ include the bolster of working capital by reducing capital in inventories; the optimization of space for more productive works; the increase of productivity; and the reduction of defect rates. Similarly‚ Younies‚ Barhem‚ and Hsu (2007) found that: The implementation of JIT can provide many advantages to a company. The usage of JIT techniques can improve a company’s problem solving capabilities by exposing problems in the production process
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Week 1 Assesment Questions Tamara Powell March 8‚ 2010 QRB 501 Prof. David Ferguson Complete the following order of operations questions: Chapter 7 12. Key Question 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 527.4/22.19 = 23.767 911.5/26.29 = 34.67 2295.9/48.22 = 47.61 4742.5/80.22 = 59.12 8790.2/103.22 = 85
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Case 9-4 Cost-Volume-Profit Analysis and Strategy: The ALLTEL Pavilion Andrea Mullens 1) The competitive strategy of the ALLTEL Pavilion is largely focused on differentiation. With no substantial competitors in the geographic region‚ they are looking to create an “experience” for the audience and thus maintain the sustainability of the venue. They do this primarily through solid Marketing efforts. They are focused on the making the venue and each event as profitable as possible‚ by making
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True/False Questions 1. The three cost elements ordinarily included in the inventoriable cost of a manufactured product are direct materials‚ direct labor‚ and marketing costs. 2. Depreciation on manufacturing equipment is a period cost. 3. Salaries and wages incurred in the factory would be product costs 4. Commissions paid to salespersons are a variable selling expense. 5. Variable costs are costs that vary‚ in total‚ in direct proportion to changes
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CheckPoint Cost‚ Volume‚ and Profit Questions 7. How should mixed costs be classified in CVP analysis? What approach is used to effect the appropriate classification? The mixed costs must be broken down into fixed and variable elements. After that is done then one needs to gather the information of the activity of the variable element in order to show the high end use and the low end use. It is important to separate these costs because the fixed cost will never change but the variable cost will always
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