Shipping and warehousing costs are currently assigned using tons of paper produced‚ a unit-based measure. Many of these costs‚ however‚ are not driven by quantity produced. Many products have special handling and shipping requirements involving extra costs. These costs should not be assigned to those products that are shipped directly to customers. 2. Compute the shipping and warehousing cost per ton of LLHC sold by using the new method suggested by Jennifer and Kaylin. The new method proposed
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railways also there was a high demand in coal and iron to run and build new railways as well so more jobs became available in coal mines and factories. Railways made the cost of moving goods cheaper therefore could be sold for less more goods are sold for less more will need to be produced. The manufactures and farmers who make these products will employ more workers and the more people with jobs can afford the products being made. Days out The railways meant that even poor people not only rich could
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approximately $1.5 billion. The company produced a variety of pork sausage products‚ predominantly fresh sausage as opposed to smoked or semi-dried. The heart of the business consisted of branded products: bratwurst (70% of Saxonville’s revenues); breakfast sausage‚ both links and patties (20% of revenues); and an Italian sausage named Vivio (5% of revenues). Store- brand products accounted for the additional 5% of revenues. While the bratwurst and breakfast products were sold throughout the United States via
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15 Cost-Volume-Profit Analysis 1. 2. 3. 4. 5. 6. The Profit Equation Breakeven Point Margin of Safety Contribution Margin Contribution Margin Ratio What-if Analysis The Profit Equation Profit = SP(x) –VC(x) – TFC X = Quantity of units produced and sold SP = Selling price per unit VC = Variable cost per unit TFC = Total fixed cost Break-Even Point The break-even point is the level of sales at which revenue equals expenses and net income is zero. 18 Break-Even Point Break-Even Point
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Ch.23 1. In order to include many different goods and services in an aggregate measure‚ GDP is computed using‚ primarily‚ a. values of goods and services based on surveys of consumers. b. market prices. c. consumer and producer surpluses. d. costs of producing goods and services. ANS: B 2. James owns two houses. He rents one house to the Johnson family for $10‚000 per year. He lives in the other house. If he were to rent the house in which he lives‚ he could earn $12‚000 per year in rent by doing
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EXERCISE 2–1 Classifying 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
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than the product’s selling season make accurate forecasting of trends crucial to Sport Obermeyer’s business. This analysis will address the production cycle‚ current challenges‚ how much product should be ordered‚ when it should be produced‚ and where it should be produced for the ’93-’94 selling season as well as some suggested recommendations for improving operational performance. The Production Cycle: The cycle time between initial design of ski parkas and the final sale to retailers typically runs
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Red Bull is the most popular energy drink that sold by Austrian company Red Bull GmbH‚ created in 1987. Red Bull drink was originally developed in Thailand by Bangkok-based TC Pharmaceutical Industry Company Ltd. By Mr. Chaleo Voovidhya in 1962 and sold under the name of Krating Deang (Red Bull). After Krating Deang (Red Bull) was very successful in Thailand market‚ in 1982 Krating Deang was transformed into global brand by Mr. Dietrich Mateschitz‚ an Austrian businessman. The story was come from
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units to be sold‚ the cost of good sold_direct material‚ direct labor‚ overhead cost‚.. need in production‚ selling and administrative expenses‚…. The flexible budget is a performance evaluation tool which can not be prepared before the end of period being budgeted. It adjusts the static budget for actual level of output. Questions appeared in mind when you are going to construct a flexible budget are “If I had known at the beginning of the period what my units produce or units sold would be‚ what
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00‚ which was not a huge surprise given that I had not yet sold anything and was trying to get the business off the ground. I knew however‚ that in order for the business to be successful‚ I would need to be somewhat conservative in Quarter 2. I chose to target the Mercedes and Travelers market segments as these two had several top things they wanted in a computer in common. While the market sizes were smaller‚ I thought if I produced the right products‚ I could be a market leader for both target
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