Grading Summary These are the automatically computed results of your exam. Grades for essay questions‚ and comments from your instructor‚ are in the "Details" section below. Date Taken: 11/25/2012 Time Spent: 2 h ‚ 18 min ‚ 12 secs Points Received: 143 / 150 (95.3%) Question Type: # Of Questions: # Correct: Multiple Choice 10 9 Short 1 N/A Essay 3 N/A Grade Details - All Questions Page: 1 2 1. Question : (TCO A) Wages paid to an assembly line worker in a factory are
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do not sell plastic rings only in France and continue to sell steel rings in other markets. In order to make good pricing decisions‚ Hans needs to identify what are the relevant costs in both steel and plastic ring and compare their contributing margin (CM). As the note in Table A‚ “OH was allocated on the basic of direct labor cost‚ and
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($400/hour IntCo.) $82‚000 Commercial Sales ($800/hour Comm.) $110‚400 Total Sales Revenue $192‚400 Variable Costs: Power ($4.70/hour) $(1‚612.10) Hourly Personnel Wages ($24/hour) $(8‚232.00) Total Varible Cost $(9‚844.10) Contribution Margin $182‚555.90 Fixed Costs: Rent $(8‚000)
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25‚000 hours of machine time each month to manufacture its two products. Product X has a contribution margin of $50 per unit‚ and Product Y has a contribution margin of $64 per unit. Product X requires 5 hours of machine time‚ and Product Y requires 8 hours of machine time. If Gamble Company wants to dedicate 80 percent of its available machine time to the product that provides the highest contribution margin per unit of the
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and volume changes. As the owner of a Snap Fitness franchise‚ decisions about selling prices‚ product mix‚ and maximizing the use of the fitness center depends on CVP. A CVP analysis classifies cost as variable and fixed‚ and calculates a contribution margin. Relevant information identified in the analysis is the total monthly fixed costs of Snap Fitness‚ which are $6‚000. Monthly fixed operating costs are $4‚000 and monthly lease equipment costs are $2‚000. The fitness center charges $26 as
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not only the budgeted profit‚ but also: * the output and sales level at which there would neither profit nor loss (break-even point) * the amount by which actual sales can fall below the budgeted sales level‚ without a loss being incurred (the margin of safety) In marginal costing‚ marginal cost varies directly with the volume of production or output. On the other hand‚ fixed cost remains unaltered regardless of the volume of output within the scale of production already fixed by management. In
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Table of Contents Introduction The objective of this report is to provide Mr. Paul Harvey‚ president with the detailed reasoning for the decisions recommended and also to figure out which products are losing money. As the company is operating in an oligopoly and has somewhat medium market share‚ setting our own prices is not an option. The giant Samra announces the prices for the products annually‚ and the other eight companies in the industry follow the price. Problem The organization
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of dollars) = Fixed cost/contribution margin ratio $7‚287.03 $7‚620.20 $11‚655.34 Break-even point in units (sale ticket) = Break-even point in dollar/Sales per tickets 4535 5000 7506 Margin of Safety = (Budgeted sales - Break-even point sales)/Budgeted sales 15.10% 5.95% -8.82% (Table 1. All the related data can be found in exhibit a.) Both the break-even point in dollars and the break-even point in units increase a lot‚ and the margin of safety drops down to negative
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CHapter 16 THE BEHAVIOR OF COSTS Changes from the Twelfth Edition All changes to Chapter 16 were minor. Approach We have retained our approach of putting all C-V-P topics in a single chapter because many schools’ marketing and management accounting core courses start simultaneously‚ and marketing likes to have break-even analysis covered early in the management accounting course. Also‚ if there are students in the course with work experience or‚ in the case of MBA courses‚ with some
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The relationship between cost volume and profit is shown by cost-volume-profit analysis. it is an analytical tool for analyzing the relationship among cost‚ price‚ profit‚ sales and production volume. Mainly there are three element in cost-volume-profit analysis. It is highly essential for the management to have the complete knowledge about the inter relationship among the cost‚ volume and profit. for this purpose cost-volume-profit analysis can be regarded as a sophisticated method or analytical
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