Managerial Accounting Mid-Term 1.) a.) Snack-Foods division president may want to play the end-of-year games because there may be a bonus for the division president if they get certain earnings for the year. Not only a bonus for the division president; but there may be a bonus for the division itself. With that being said he could use that for the other employees to help participate in the year-end games. If corporate has seen them fallen behind‚ then these year-end games maybe able to apply
Premium Variable cost Costs Management accounting
Dateesha Blakely PROC 5830 22 April 2011 Wk 7 Case 2 Case of the Pricing Predicament Case Assignment Calibrated manufacturing makes an electronic component that is in great demand. The component sells for $20 each. Calibrated’s current capacity is 10‚000 units per week. For the last few months‚ however‚ the company has been receiving new orders at a rate of 14‚000 units per week‚ and now has a substantial backlog. The company expects this order rate to continue‚ if it maintains price
Premium Variable cost Contribution margin Cost
the sales manager is right‚ what will be the effect on the company’s monthly net operating income or loss? (Use the incremental approach in preparing your answer.) Requirement 2 (continued) Incremental method Variable expense ($14 per unit) Contribution Margin $340‚000 Sales increased 238‚000 VE increased 102‚000 CM increased Fixed Expenses 98‚000 Net Operating Income $4‚000 Sales (17000 units x 20) $70‚000/20 = 3500 units $189‚000/13500 = $14 per unit $90‚000 + 8‚000= $98‚000 $70‚000
Premium Variable cost Contribution margin Income statement
Variable Cost = 148+2321+40+(1372+94)*1.05 +32 = 4080.3 k Old Contribution = 9.41*750-4007 = 3050.5 k New Contribution = 8.64*1000-4080.3 = 4559.7 k Since the contribution margin is higher at 8.64$ therefore the company should decrease price. * 4. Answer 3 Profit is dependent on Total Contribution‚ because a product with higher contribution margin but lower sales won’t be able to give profits to the company. Hence‚ Actual total contribution decides profitability of the product. Thus‚ Product 101 is
Premium Variable cost Costs Contribution margin
range is the range of activity for which estimates of costs are likely to be accurate. 8. The contribution margin is equal to the selling price minus variable cost. The contribution margin ratio is the contribution margin per dollar of sales‚ i.e.‚ the contribution margin per unit divided by the sales price per unit. 9. It would not be appropriate to focus on weighted average contribution margin per unit if the units were dissimilar (e.g.‚ pencils and computers at an office supply warehouse)
Premium Variable cost Costs Contribution margin
costs and the contribution margin. Question 1 : Should Lille Tissages change the price from FF20 to FF15? In order to answer to this question‚ the marketing director and the finance director need to consider the variable costs and the contribution margin for the two solution for the price of item 345 : FF20 and FF15 and analyze the advantage and disadvantage of each one. The question is what effect will have the change of price? Changing the price will affect the contribution margin (sale
Premium Variable cost Costs Cost
capacity for the planning period. _F___6. This cost is the combined amount of all the other costs. II. Contribution margin and breakeven Apollo Company manufactures a single product that sells for $168 per unit and whose total variable costs are $126 per unit. The company’s annual fixed costs are $630‚000. Use this information to compute the company’s (a). Contribution margin‚ (b). Contribution margin ratio‚(c). Break-even point in units‚(d). Break-even point in dollars of sales. (a). CM/unit =
Premium Variable cost Contribution margin Costs
Cost-Volume-Profit Analysis From Wikipedia‚ the free encyclopedia Jump to: navigation‚ search Cost-Volume-Profit Analysis (CVP)‚ in managerial economics is a form of cost accounting. It is a simplified model‚ useful for elementary instruction and for short-run decisions. Cost-volume-profit (CVP) analysis expands the use of information provided by breakeven analysis. A critical part of CVP analysis is the point where total revenues equal total costs (both fixed and variable costs). At this breakeven
Premium Management accounting Costs Variable cost
maintain the same contribution margin ratio? WwW.DiorBoy.Com All Rights for Abdulmohsen WwW.DiorBoy.Com All Rights for Abdulmohsen fixed costs unit contribution margin $702‚000 135‚000 units $25.00 $19.80 1. Break - even point (in units) 2. Break - even point (in sales dollars) 3. Number of sales units required to earn target net profit 4. Margin of safety = budgeted sales revenue – break-even sales revenue fixed cost contribution - margin ratio
Premium Bus Variable cost Costs
Management Accounting Sem 1 2011 Tutorial Class Participation / Learning Journal Name of Student / ID no.: Name of Tutor: Day / Time of Tutorial Class: Week Attended Tute: Yes/No Describe participation and/or contributions made (if any) Reflect on and describe 1 important learning point from this week’s reading /case ( length guide: 50-75 words a week); Do not just list what topics were discussed; describe a valuable learning point for you and explain why so.
Premium Understanding Contribution margin Question