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Tying as a Bundling Strategy
1.
What is the contribution margin at each price for each product?
a) Hydration High Price contribution margin is $6
b) Hydration Low Price contribution margin is $5
c) Smoothie High Price contribution margin is $6
d) Smoothie Low Price contribution margin is $1
2.
Refer to Problem Set 3 for the data needed to answer the questions below:
Hydration Power
Drink
Satisfying
Smoothie
Bundle Price
Net Profit
Early
7.00
5.00
5.00
7.00
Late
6.00
10.00
5.00
11.00
3. a) TR = $190,000
b) TR = $150,000
c) TR = $95,000
d) TR = $35,000
e) TR Group Home = $70,000
Surname 2
f) TR Group Home = $90,000
g) TR Group Home = $160,000
h) TR Group Home = $195,000
4.
4a) TR Bundle = $760,000
4b) TR Bundle = $600,000
4c) TR Bundle = $380,000
4d) TR Bundle = $140,000
5.
At what individual price would revenue be maximized for the Certification in Online
Counseling?
The revenue would be maximized at $190 individual price. The total revenue for 1000 customer
would be $190,000.
6. At what individual price would revenue be maximized for the Certification as a Group
Home Counselor?
The revenue for group home counselor would be maximized at $35 individual price. The total
revenue for 1000 customers would be $195,000.
7. What is the maximum revenue for individual pricing?
Maximum revenue = $190,000
8. If you applied pure bundling, what would be the maximum revenue?
Surname 3
If pure bundling is applied, the maximum total revenue would be $760,000 at $190 individual
price.
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Exercises
+ Suppose that we made an AHP analysis based on the
following comparison tables
Value
R1
R2
R3
R1
1
9.
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1
R3
1
Cost
R1
R2
R3
R1
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1/7
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1) Draw the value cost diagram from these tables
2) From the diagram, rank the requirements according to their
priorities starting from the highest priority
Dr. Quta Shambour
PArt Requirciments Analy
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Please do not give solution in image format thanku
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Please answer completely and correctly with explanation computation formula steps answer in text no copy paste show explanation and computation clearly for numbers provide full working for all steps with explanation Please answer the question under “Your answer is incorrect.”
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Cleveland Foods Data Note: You can download
the Excel file containing Cleveland Foods' data
by clicking the above link and perform the
necessary calculations for answering the
upcoming questions. Question 12 (1 point) □
What is the unit contribution of BlueLiq,
considering the given information? $0.70 $2.50 $
1.00 $1.70
$
$
J
0
20% Retail Margin
2.50 Price to consumers (Retail Price)
15% Wholesale Margin
2.00 Price to retailers (Wholesale Price)
$
1.70 Price to Wholesalers
Variable Costs
$ 0.70 per unit
Fixed Costs
Variable Manufacturing Costs
$300,000 annual
$200,000 Corporate Overhead
$250,000 Marketing and Advertising
$750,000 Total Fixed Costs
Cleveland Foods Data
Fixed Manufacturing Costs
Note: You can download the Excel file containing Cleveland Foods' data by clicking
the above link and perform the necessary calculations for answering the upcoming
questions.
Question 11 (1 point).
Listen
4
What is the price at which Cleveland Foods sells BlueLiq to wholesalers?
$1.70
$2.50
$1.00
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Introduction te X
Math Fundam x
O The Finance St X
Foundations o x C Seafood - Eat X G
Wakefield, Rhc X
Login
A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false
CengageNOW
Chapter 17 Homework
eВook
Show Me How
Costs per Equivalent Unit
The following information concerns production in the Baking Department for December. All direct materials are placed in process at the beginning of production.
ACCOUNT Work In Process-Baking Department
ACCOUNT NO.
Date
Item
Balance
Debit
Credit
Debit
Credit
Dec.
1 Bal., 8,700 units, 2/5 completed
19,140
31 Direct materials, 156,600 units
297,540
316,680
31 Direct labor
82,180
398,860
31 Factory overhead
46,220
445,080
31 Goods finished, 158,700 units
428,316
16,764
31 Bal., ? units, 4/5 completed
* 16,764
a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit answers to the nearest cent.
1. Direct materials cost per equivalent unit
2. Conversion cost…
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ok I have attached both parts of the question hopfully you can see them
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Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the
split-off point total $320,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on
the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows:
Quarterly
Output
11,800 pounds
18,500 pounds
3,000 gallons
Product
Selling Price
$14.00 per pound
$ 8.00 per pound
$20.00 per gallon
A
Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional
processing costs (per quarter) and unit selling prices after further processing are given below:
Additional
Processing
Costs
$56,850
$80,875
$31,300
Selling
Price
$18.50 per pound
$13.50 per pound
$27.50 per gallon
Product
В
C
Required:
1. What is the financial advantage (disadvantage) of further processing each of the…
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Chapter 1: Applying Excel: Excel Worksheet (Part 1 of 2)
Download the Applying Excel form and enter formulas in all cells that contain question marks.
For example, in cell C18 enter the formula "= B6".
After entering formulas in all of the cells that contained question marks, verify that the dollar amounts in both the traditional and contribution format income statements match the numbers in Exhibit 1-7.
Check your worksheet by changing the variable selling cost in the Data area to $900, keeping all of the other data the same as in Exhibit 1-7. If your worksheet is operating properly, the net operating income under the traditional format income statement and under the contribution format income statement should now be $700 and the contribution margin should now be $4,700. If you do not get these answers, find the errors in your worksheet and correct them.
Save your completed Applying Excel form to your computer and then upload it here by clicking “Browse.” Next, click…
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Mastery Problem: Cost-Volume-Profit Analysis
Question Content Area
Cost Behavior
Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow.
UnitsProduced
TotalLumberCost
TotalUtilitiesCost
Total MachineDepreciationCost
7,000 shelves
$84,000
$9,550
$140,000
14,000 shelves
168,000
17,600
140,000
28,000 shelves
336,000
33,700
140,000
35,000 shelves
420,000
41,750
140,000
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A. Avoid extra payroll expenses.
B. Get the best rates on advertising.
C. Change the product you provide.
D. Use resources wisely.
E. Beat the competition.
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G. Eliminate some free services.
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Rationale:
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Rationale:
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Rationale:
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(Click the icon to view the outsourcing decision.)
Requirement 1. Identify the expected net costs that Opti Systems will incur to acquire 85,000 switches unde
Outsource switches
Facilities
Idle
Switch costs
Make
Variable costs:
Direct materials
Direct labor
Variable manufacturing overhead
Purchase cost
Expected profit contribution from the other
product
Total expected net cost of the optical switches
Make new
product
LO
Opti Systems needs 85,000 optical switches. By outsourcing them, Opti Systems can use its idle
facilities to manufacture another product that will contribute $217,000 to operating income.
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Data table
4
Make
Outsource
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optical switch optical switch (Make-Outsource)
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9.00
$
9.00
5.00
4.00
18.00 $
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1. Use vertical analysis to compare profitability.
区 日
Perform Vertical Analysis - Excel
FILE
НОМE
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PAGE LAYOUT
FORMULAS
DATA
REVIEW
VIEW
Sign In
Calibri
11
A A
%
Paste
BIU-
Alignment Number
Conditional Format as Cell
Cells
Formatting -
Table Styles -
Clipboard E
Font
Styles
A1
fx
Lake Athletics sells two distinct product lines: Apparel and Equipment.
В
C
D
E
F
1 Lake Athletics sells two distinct product lines: Apparel and Equipment.
2 The income statement for each product line appears below.
3
4
LAKE ATHLETICS
Income Statement
For the Year Ended December 31, 20X1
7
Apparel
Equipment
8
Amount
Percent
Amount
Percent
9 Net sales
$3,150,000
1,400,000
$5,550,000
2,720,000
2,830,000
10 Cost of goods sold
11 Gross profit
12 Operating expenses
13 Operating income
1,750,000
800,000
950,000
875,000
1,955,000
14 Other income
20,000
10,000
15 Income before tax
1,965,000
491,000
970,000
16 Income tax expense
241,250
$728,750
17 Net income
$1,474,750
18
19 Required:
20 1. Use appropriate…
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Requirements
Dialog content starts
1.
Allocate revenue from the sale of each unit of Dynamic Duo to Smarty and Sublime using the following:
a.
The stand-alone revenue-allocation method based on selling price of each product
b.
The incremental revenue-allocation method, with Smarty ranked as the primary product
c.
The incremental revenue-allocation method, with Sublime ranked as the primary product
d.
The Shapley value method
2.
Of the four methods in requirement 1, which one would you recommend for allocating Paris's revenues to Smarty and Sublime? Explain.
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Sell or Process Further
Zing Coffee Company produces Columbian coffee in batches of 5,600 pounds. The standard quantity of materials required in the process is 5,600
pounds, which cost $5.00 per pound. Columbian coffee can be sold without further processing for $8.40 per pound. Columbian coffee can also be
processed further to yield Decaf Columbian, which can be sold for $12.00 per pound. The processing into Decaf Columbian requires additional
processing costs of $12,650 per batch. The additional processing will also cause a 4% loss of product due to evaporation.
a. Prepare a differential analysis report for the decision to sell or process further.
Zing Coffee Company
Proposal to Process Columbian Coffee Further
Differential Analysis Report
Differential revenue from further processing per batch:
Revenue from sale of Decaf Columbian
<
Revenue from sale of Columbian coffee
Differential revenue
Differential cost per batch:
Additional cost of producing Decaf Columbian
Differential income…
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please answers part d only
here answers of a b c
Step 1
Markup
Markup is amount added to cost to recover overhead and gain profits.
Markup is also generally known as profit.
Markup = Selling Price - Cost Price
Markup % on Cost = Markup/Cost * 100
Step 2 Part (a)
Selling Price of signature jeans = OMR 2300
Cost Price of signature jeans = OMR 1800
Markup = Selling Price - Cost Price
Markup = OMR 2300 - OMR 1800 = OMR 500
Markup amount in OMR = OMR 500
Markup as a % of cost = Markup amount/Cost Price * 100
Markup as a % of cost = OMR 500/OMR 1800 *100
Markup as a % of cost = 27.7777777%
Hence,
Markup as a percentage of cost = 27.777777%
Step 3 Part (b)
Lamp Cost = OMR 200
The markup on Selling Price = 40%
Markup = Selling Price - Cost Price
Hence,
Selling Price = Cost Price + Markup
We know, 40% markup is on selling price
Hence,
Let's consider selling price as 'x'
Markup = 40% on selling price
Markup = 40% * x
Markup = .40x
Putting these values in equation we get,
Selling Price = Cost…
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aj.3
answer must be in table format or i will give down vote
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- Please answer completely and correctly with explanation computation formula steps answer in text no copy paste show explanation and computation clearly for numbers provide full working for all steps with explanation Please answer the question under “Your answer is incorrect.”arrow_forwardCleveland Foods Data Note: You can download the Excel file containing Cleveland Foods' data by clicking the above link and perform the necessary calculations for answering the upcoming questions. Question 12 (1 point) □ What is the unit contribution of BlueLiq, considering the given information? $0.70 $2.50 $ 1.00 $1.70 $ $ J 0 20% Retail Margin 2.50 Price to consumers (Retail Price) 15% Wholesale Margin 2.00 Price to retailers (Wholesale Price) $ 1.70 Price to Wholesalers Variable Costs $ 0.70 per unit Fixed Costs Variable Manufacturing Costs $300,000 annual $200,000 Corporate Overhead $250,000 Marketing and Advertising $750,000 Total Fixed Costs Cleveland Foods Data Fixed Manufacturing Costs Note: You can download the Excel file containing Cleveland Foods' data by clicking the above link and perform the necessary calculations for answering the upcoming questions. Question 11 (1 point). Listen 4 What is the price at which Cleveland Foods sells BlueLiq to wholesalers? $1.70 $2.50 $1.00arrow_forwardIntroduction te X Math Fundam x O The Finance St X Foundations o x C Seafood - Eat X G Wakefield, Rhc X Login A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false CengageNOW Chapter 17 Homework eВook Show Me How Costs per Equivalent Unit The following information concerns production in the Baking Department for December. All direct materials are placed in process at the beginning of production. ACCOUNT Work In Process-Baking Department ACCOUNT NO. Date Item Balance Debit Credit Debit Credit Dec. 1 Bal., 8,700 units, 2/5 completed 19,140 31 Direct materials, 156,600 units 297,540 316,680 31 Direct labor 82,180 398,860 31 Factory overhead 46,220 445,080 31 Goods finished, 158,700 units 428,316 16,764 31 Bal., ? units, 4/5 completed * 16,764 a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit answers to the nearest cent. 1. Direct materials cost per equivalent unit 2. Conversion cost…arrow_forward
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