1. Compute the normal and abnormal spoilage in units. 2. Assume that the equivalent-unit cost of a spoiled unit is $8. Compute the amount of potential savings if all spoilage were eliminated, assuming that all other costs would be unaffected. Comment on your answer.

Q: Which of the following statements about margin of safety is false? O a. If only the fixed costs…

A: This option is False A. If only the fixed cost decreases but the number of units sold and unit…

Q: Is it possible to quantify a recipe without costing it? Why?

A: The menu of a restaurant or recipe business is considered as the main factor of sales…

Q: 6.) Statement 1. The high-low method needs three observations of costs to calculate the cost…

A: Hi studentSince there are multiple questions, we will answer only first question.Cost estimation is…

Q: When the contribution margin per unit increases assuming all other factors remain constant. The…

A: Contribution margin per unit : The contribution margin is defined as the amount of which the sales…

Q: *check the attached photo for the problem REQUIRED: What is the total cost per unit?

A: Gigi decided to make chicken and rice to sell, it is necessary to decide the cost per unit.

Q: My question is asking the amount of the total variable expense. Please help.

A: Variable expenses are those which do not remain constant. These expense keeps on varying with the…

Q: What are the best methods for dealing with difficult-to-measure costs and benefits, such as the…

A: When we make decisions, we often need to consider both the costs and benefits of different options.…

Q: Pick ONE of the two options... Option 1: Diminishing marginal utility holds that the additional…

A: One would experience diminishing marginal utility for a good or service over time as they became…

Q: 1.) What is sensitivity analysis? 2.) Perform a sensitivity analysis on the cost per unit, unit…

A: It is a statement showing various outcomes with different projections of input variables. With the…

Q: 7. Which of the following charts best represent total variable costs? For each chart, the line…

A: Total variable cost which increases when number of production units increases I.e changing of…

Q: Assume that the equivalent-unit cost of a spoiled unit is $8. Compute the amount of potential…

A: Compute the abnormal spoilage in units.

Q: Which of the following is a correct definition of the margin of safety? The excess of contribution…

A: Margin of safety: Margin of safety is the point at which company makes profit. In other words Margin…

Q: Problem #7 Humble Oil Company has developed a new well for onshore crude oil production at a total…

A: Calculation of depletion rate = Depletion base/Total expected recoverable units = ($ 9.6 Mn -0.325…

Q: Gad Company's quality cost report is to be based on the following data: Re-entering data because of…

A: Total prevention cost = Quality training + System development = 19,000 + 79,000 = 98,000

Q: The potential benefit of one alternative that is lost by choosing another is known as a. An…

A:

Q: The concept of present worth allows engineers to convert costs and benefits to an equivalent value…

A: The present worth means present value of all the benefits and costs at given point point of time. It…

Q: xplain whether the following statements is true or false   In the Solow model, it is poss

A: If the savings rate would increase but the output per-worker is increased by more than the increase…

Q: In using least-squares to estimate the variable and the fixed components in a mixed cost, these two…

A: Least Square method (Linear regression) is a very accurate method for dividing cost into variable…

Q: Sales..... Variable expenses.. Contribution margin ..... Fixed expenses.. Operating income.. Total $…

A: The contribution margin of a company is the amount of money that is left over from sales after…

Q: Variable cost = Total cost - Fixed cost - Net profit) you have not consider the net profit in the…

A: Variable costs are those which remain same in per unit but change in total.Fixed costs are those…

Q: “The unit cost of normal spoilage is the same as the unit cost of abnormal spoilage.”Do you agree?…

A:

Q: a) What is the gross margin now? Gross margin b) What is the net operating income now? Net operating…

A: Solution

Q: Which of the following statements is true when making decisions using cost-volume-profit (CVP)…

A: The contribution margin is calculated as difference between sales and variable costs. The net income…

Q: All equipment costs will continue to be depreciated on a straight-line basis. For simplicity, ignore…

A: