Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
03 and the COGS per unit is $6.89. For Product B, the price per unit is $20.46 and the COGS per unit is $16.37. For Product C. The price per unit is $51.37 and the COGS per unit is $41.10. For Product D. The price per unit is $90 and the COGS per unit is $50.63.
The next step is to produce an income statement for each customer type.
Problem 12-34
Product a
B
C
D
Price
$11.03
$20.47
$51.38
$90.00
COGS
$6.90
$16.37
$41.10
$50.63
Customer a
Customer B
Customer C
Revenue
$42,822
$141,384
$359,793
COGS
$25,322
$91,759
$278,319
Gross Profit
$17,501
$49,625
$81,474
Gross Margin
40.87%
35.10%
22.64%
The most profitable customer is Customer a.
The cost to serve % of sales is based on the $140,000 cost to serve expense, which is allocated on the basis of sales. This is calculated as follows:
Customer a
Customer B
Customer C
% of sales
7.87%
25.99%
66.14%
Cost to Serve
$11,020
$36,386
$92,594
These are the cost to serve percentage of sales. The most expensive customer to serve is customer C. This is also the customer with the lowest margins, but the highest dollar value of sales. However, all have the same cost-to-serve as a percentage of sales, because cost-to-serve is allocated as a percentage of sales. The figure is 25.74%.
I'm afraid I do not really understand that chart, and can't make Excel draw it. The...
The best way to increase the profit for every customer is to increase the percentage of Product D. that is sold. This is the highest margin product, so the more of that product that is sold the better the margin for each customer will be. For Customer C, the gross margin is very low.
Problem 12-35
1. Using the physical units method, Solvent a would have 9000/15000 = 60% and Solvent B. would have 40%. This gives the following cost allocations:
Solvent a = 60% * $300,000 = $180,000
Solvent B = 40% * $300,000 = $120,000
2. Using the relative sales value method, we need to calculate the sales value of each product. Solvent a = $30 * 9000 = $270,000 and Solvent B = $45 * 6000 = $270,000 so 50% each.
Solvent a = 50% * $300,000 = $150,000
Solvent B = 50% * $300,000 = $150,000
Problem 13-38.
This question involves working backwards to find the missing data. The first question is about the total budgeted machine hours. The total budgeted overhead is calculated by adding the different overhead types in the budget. This is $70 + $19 + $84 + $139 = $312,000. The budgeted overhead allocation rate is $6 per machine hour. This implies:
$312,000 / $6 = 52,000 machine hours were budgeted.
The second question is about total applied overhead cost. To calculate this, we take the actual hours worked and the budgeted overhead allocation rate:
68,000 * 6 = $408,000
This means that the overhead should have been $408,000. The actual was $439,000, which means that the overhead ran over by $31,000.
Any difference between actual overhead and applied overhead would not appear on the income statement. None of the figures from the budget will appear on the income statement. For December, Hatch's income statement will only…
33% 400000 53.33% 480000 53.33% FM 125,000 125,000 125,000 FSA 25,000 25,000 25,000 Net Income 170,000 28.33% 250,000 33.33% 330,000 36.67% 2. The manager's tabulation is incorrect because the manager has set $2 as the fixed cost per unit. This is only true at the 200,000 unit level. At the other levels, the fixed cost per unit will be lower, as fixed costs do not increase with production volume. 6-47. 1. In order to make this assessment, Dana needs to calculate which method is cheaper. The accounting for producing the parts
Under the first scenario, the ideal price point is only the maximum profit point for children, but it not for adults. Chapter 11, p. 449, Q2. An adverse selection problem is defined in the textbook as "a situation resulting from asymmetric information in which parties may not come to an agreement on a transaction because of distrust on the part of the party with incomplete market information…" in the scenario presented,
So for the 70,000 units completed in July: (70,000)(15 + 10.65) = $1,795,500 2. The ending works in progress is 20,000. The total cost should be (20,000)(25.65) = 513,000 Note: These figures represent the total cost of the goods, not the total cost in July of the goods. The question is worded a little bit funny so I wasn't sure which one it was intended to be. Problem 14-21. Problem 14-21 1 2 3 4 DM Inv, 2010 8 8 5 2 Purchased 5 9 10 8 Used 7 11 7 3 DM Inv,
Management Strategy to Utilize Meta-Analysis Technique for Nuclear Energy and Waste Disposal and Create Social Sustainability This research proposal explores the link between public perceptions of nuclear power, how those perceptions are formed, and what influence those opinions have on energy policy. These issues are important in light of two realities. First, nuclear energy is declining in its share of global energy. Second, nuclear energy offers what might well be
, 2005). In addition, the workload on clinicians is often increased past the point of reasonable because it is too intrusive and time consuming to document patient encounters during clinic time (Grabenbauer, Skinner, and Windle, 2011). The amount of information that can accumulate in a patient's record from multiple sources can be daunting and lead to information overload. CDS alerts can be so common that clinicians begin to ignore them.
The article concedes, however, that declining business confidence is an absolute danger that must be dealt with and the government not being an active partner with businesses and in favor of the recovery will just make things worse (Pollin, 2010). A similar point is made in a different article that states that the role of fiscal policy in pushing an economy towards recovery cannot be over-estimated or over-analyzed because of