A company manufactures video surveillance systems for single-family homes. Three systems are offered: the entry-level model "Look-who's-coming" (Gwk) is priced at €7,500, the intermediate system "No-one-here" (Kd) is priced at €12,000, and the professional model "No-one-here-except-Rex" (KdR) is sold for €20,000. The following data is available for the accounting period: System Gwk Kd KdR Production Quantity: 80 units 120 units 50 units Sales Quantity: 150 units 90 units 75 units Cost of Production/Unit: €6,500 €6,000 €8,000 Administrative and Sales Costs/Unit: €1,500 €3,000 €4 000 Just look at the table is better Gwk 80 unit 150 unit Production cost per 6.500€ unit Sy stem Production amount: Sales volumes Administration cost 1.500€ per unit Kd 120 unit 90 unit 6.000€ 3.000€ KdR 50 units 75 unit 8.000€ 4.000€ The cost of production per unit is assumed to remain constant in the long term. a) Determine the total costs of the period b) Determine the operating result according to the total cost method c) Determine the operating result according to the revenue-cost method,
A company manufactures video surveillance systems for single-family homes. Three systems are offered: the entry-level model "Look-who's-coming" (Gwk) is priced at €7,500, the intermediate system "No-one-here" (Kd) is priced at €12,000, and the professional model "No-one-here-except-Rex" (KdR) is sold for €20,000. The following data is available for the accounting period: System Gwk Kd KdR Production Quantity: 80 units 120 units 50 units Sales Quantity: 150 units 90 units 75 units Cost of Production/Unit: €6,500 €6,000 €8,000 Administrative and Sales Costs/Unit: €1,500 €3,000 €4 000 Just look at the table is better Gwk 80 unit 150 unit Production cost per 6.500€ unit Sy stem Production amount: Sales volumes Administration cost 1.500€ per unit Kd 120 unit 90 unit 6.000€ 3.000€ KdR 50 units 75 unit 8.000€ 4.000€ The cost of production per unit is assumed to remain constant in the long term. a) Determine the total costs of the period b) Determine the operating result according to the total cost method c) Determine the operating result according to the revenue-cost method,
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A company manufactures video surveillance systems for single-family homes. Three
systems are offered: the entry-level model "Look-who's-coming" (Gwk) is priced at €7,500,
the intermediate system "No-one-here" (Kd) is priced at €12,000, and the professional
model "No-one-here-except-Rex" (KdR) is sold for €20,000. The following data is available
for the accounting period:
System Gwk Kd KdR Production Quantity: 80 units 120 units 50 units Sales Quantity: 150
units 90 units 75 units Cost of Production/Unit: €6,500 €6,000 €8,000 Administrative and
Sales Costs/Unit: €1,500 €3,000 €4,000
Just look at the table is better
System
Gwk
Production amount:
80 unit
Sales volumes
150 unit
Production cost per 6.500€
unit
Administration cost 1.500€
per unit
Kd
120 unit
90 unit
6.000€
3.000€
KdR
50 units
75 unit
8.000€
4.000€
The cost of production per unit is assumed to remain constant in the long term.
a) Determine the total costs of the period
b) Determine the operating result according to the total cost method
c) Determine the operating result according to the revenue-cost method,
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VIEWStep 4: Part 2 Determine the Operating Result According to the Total Cost Method:
VIEWStep 5: Part 3 Determine the Operating Result According to the Revenue-Cost Method:
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