1. If Wilkerson were to cut prices‚ based on contribution margin‚ to just cover short-term variable costs‚ what consequences could it experience? (5 marks) Several break-even-point assumptions are made in calculation: 1) Total fixed costs do not change with volume‚ and will exist regardless if the products are sold or not. 2) Sales mix will be constant. The contribution-margin percentage is 66.1%‚ which means 66.1 percent of each sales dollar is available for covering fixed costs and making
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of Identify your recommended costing system‚ including your rationale‚ to management Recommended costing system My recommendation would be for Super Bakery Inc. to use the ABC ( activity-based costing system). Rationale‚ to management My rationale is as follow: Super Bakery Inc. will benefit from implementing activity-based costing system because‚ “in activity-based costing system‚ activity is any event‚ action‚ transaction‚ or work sequence that incurs cost when producing a product or providing
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CHAPTER 2 BACKGROUND OF THE STUDY Existing System Overview The customer contact the agency through the telephone or by visiting the office The reservation officer log in to ABACUS/AMADEUS (GDS) The reservation officer starts using CRS Getting the tour preferences (departure & arrival dates‚ number of persons‚ etc.) and profile information of the customer Booking depends on the destination & departure dates Review/recap of the purchase Confirmation of the booking Receive
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Assessment 2 – Individual By – Andrew Chan WILKERSON COMPANY Overview Wilkerson Company is facing a decline in profits and has attributed this to a severe price cutting exercise in their Pumps line of products‚ dropping the company’s pre-tax margin to less than 3%‚ far below the historically healthy 10% margins. It appears that gross margins on pump sales in the latest month had fallen below 20%‚ well below the budgeted gross margin of 35%. Although a recent increase to Flow Controllers
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1. The Wilkerson Company is in the business of manufacturing valves‚ pumps and flow controllers. The company has been experiencing profit losses due to price reductions as a result of heavy competition in the pump category‚ which is considered a commodity product. In the valves category‚ Wilkerson seems to be a market leader with a loyal customer base. The valve business is less competitive‚ with no price reductions‚ and therefore the company has maintained its gross margin target while not compromising
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Section B The Problems Existing in the Philippine Educational System For many years‚ the Philippine educational system has been facing many problems. These problems are due to the population explosion and globalization. Another thing is gap existing between the private and the public school systems. In addition‚ the students in the Philippines cannot be considered competent due to different matters‚ such as‚ the errors in the textbooks given to the students in the public school system. Moreover‚ the
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BK5503 Islamic Banking January 2014 Semester INCEIF The Global University in Islamic finance MSc in Islamic Finance Are existing systems for Shari’ah governance adequate? How could they be improved? BK5503 Islamic Banking January 2014 Semester Name: Mohamad Zaky Bin Jailani Student ID: 1400025 Mohamad Zaky Bin Jailani 1400025 Page 1 BK5503 Islamic Banking January 2014 Semester Table of Contents Key Terms and Abbreviations 3 Abstract 3 1.0 Introduction
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COSTING SYSTEMS Changes from Tenth Edition Chapter 18 was modified to include discussions of customer-related and business-related cost drivers and recent evidence about the usage and success of activity-based cost systems. Approach Our treatment of job costing and process costing is as brief as we can make it and still get the general points across. Students do need to understand the general idea of these cost accumulation procedures; otherwise they are unable to visualize how costs are actually
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AIM 6202 – Wilkerson Company Everything you need is in the case and in the requirements provided below. I will not provide any interim feedback on this case so please do not send me any preliminary analysis to check whether you are “on track.” Address the issues/questions provided below in your case report. The format of the write up can be either in the form of detailed answers to each of the questions below or as a comprehensive‚ smooth-flowing case analysis. No page limits and you
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1. Describe in words how costs are assigned in the Wilkerson’s current costing system. Discuss the pros and cons of this system. Wilkerson uses a simple traditional cost accounting system in which each unit of product is charged for direct material‚ direct labor and overhead costs. Material cost is based on the prices paid for component under annual purchasing agreements. Labor cost is charged to products based on the standard run times for each product. Labor rates‚ including fringe benefits
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