Differential Analysis for Sales Promotion Proposal Parisian Cosmetics Company is planning a one-month campaign for September to promote sales of one of its two cosmetics products. A total of $123,000 has been budgeted for advertising, contests, redeemable coupons, and other promotional activities. The following data have been assembled for their possible usefulness in deciding which of the products to select for the campaign: Moisturizer Perfume Unit selling price $58 $64 Unit production costs: Direct materials $10 $14 Direct labor 4 5 Variable factory overhead 2 4 Fixed factory overhead 6 6 Total unit production costs $22 $29 Unit variable selling expenses 18 17 Unit fixed selling expenses 10 7 Total unit costs $50 $53 Operating income per unit $8 $11 No increase in facilities would be necessary to produce and sell the increased output. It is anticipated that 22,000 additional units of moisturizer or 18,000 additional units of perfume could be sold from the campaign without changing the unit selling price of either product. Required: 1a. Prepare a differential analysis as of August 21. If an amount is zero, enter "0". Differential Analysis Promote Moisturizer (Alt. 1) or Promote Perfume (Alt. 2) August 21 Promote Moisturizer (Alternative 1) Promote Perfume (Alternative 2) Differential Effect on Income (Alternative 2) Revenues $fill in the blank 15198805804cf8e_1 $fill in the blank 15198805804cf8e_2 $fill in the blank 15198805804cf8e_3 Costs: Direct materials fill in the blank 15198805804cf8e_4 fill in the blank 15198805804cf8e_5 fill in the blank 15198805804cf8e_6 Direct labor fill in the blank 15198805804cf8e_7 fill in the blank 15198805804cf8e_8 fill in the blank 15198805804cf8e_9 Variable factory overhead fill in the blank 15198805804cf8e_10 fill in the blank 15198805804cf8e_11 fill in the blank 15198805804cf8e_12 Variable selling expenses fill in the blank 15198805804cf8e_13 fill in the blank 15198805804cf8e_14 fill in the blank 15198805804cf8e_15 Sales promotion fill in the blank 15198805804cf8e_16 fill in the blank 15198805804cf8e_17 fill in the blank 15198805804cf8e_18 Income (Loss) $fill in the blank 15198805804cf8e_19 $fill in the blank 15198805804cf8e_20 $fill in the blank

Differential Analysis for Sales Promotion Proposal Parisian Cosmetics Company is planning a one-month campaign for September to promote sales of one of its two cosmetics products. A total of $123,000 has been budgeted for advertising, contests, redeemable coupons, and other promotional activities. The following data have been assembled for their possible usefulness in deciding which of the products to select for the campaign: Moisturizer Perfume Unit selling price $58 $64 Unit production costs: Direct materials $10 $14 Direct labor 4 5 Variable factory overhead 2 4 Fixed factory overhead 6 6 Total unit production costs $22 $29 Unit variable selling expenses 18 17 Unit fixed selling expenses 10 7 Total unit costs $50 $53 Operating income per unit $8 $11 No increase in facilities would be necessary to produce and sell the increased output. It is anticipated that 22,000 additional units of moisturizer or 18,000 additional units of perfume could be sold from the campaign without changing the unit selling price of either product. Required: 1a. Prepare a differential analysis as of August 21. If an amount is zero, enter "0". Differential Analysis Promote Moisturizer (Alt. 1) or Promote Perfume (Alt. 2) August 21 Promote Moisturizer (Alternative 1) Promote Perfume (Alternative 2) Differential Effect on Income (Alternative 2) Revenues $fill in the blank 15198805804cf8e_1 $fill in the blank 15198805804cf8e_2 $fill in the blank 15198805804cf8e_3 Costs: Direct materials fill in the blank 15198805804cf8e_4 fill in the blank 15198805804cf8e_5 fill in the blank 15198805804cf8e_6 Direct labor fill in the blank 15198805804cf8e_7 fill in the blank 15198805804cf8e_8 fill in the blank 15198805804cf8e_9 Variable factory overhead fill in the blank 15198805804cf8e_10 fill in the blank 15198805804cf8e_11 fill in the blank 15198805804cf8e_12 Variable selling expenses fill in the blank 15198805804cf8e_13 fill in the blank 15198805804cf8e_14 fill in the blank 15198805804cf8e_15 Sales promotion fill in the blank 15198805804cf8e_16 fill in the blank 15198805804cf8e_17 fill in the blank 15198805804cf8e_18 Income (Loss) $fill in the blank 15198805804cf8e_19 $fill in the blank 15198805804cf8e_20 $fill in the blank

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

Differential Analysis for Sales Promotion Proposal

Parisian Cosmetics Company is planning a one-month campaign for September to promote sales of one of its two cosmetics products. A total of $123,000 has been budgeted for advertising, contests, redeemable coupons, and other promotional activities. The following data have been assembled for their possible usefulness in deciding which of the products to select for the campaign:

	Moisturizer	Perfume
Unit selling price		$58			$64
Unit production costs:
	Direct materials	$10		$14
	Direct labor	4		5
	Variable factory overhead	2		4
	Fixed factory overhead	6		6
	Total unit production costs	$22		$29
Unit variable selling expenses	18		17
Unit fixed selling expenses	10		7
	Total unit costs	$50		$53
Operating income per unit	$8		$11

No increase in facilities would be necessary to produce and sell the increased output. It is anticipated that 22,000 additional units of moisturizer or 18,000 additional units of perfume could be sold from the campaign without changing the unit selling price of either product.

Required:

1a. Prepare a differential analysis as of August 21. If an amount is zero, enter "0".

Differential Analysis
Promote Moisturizer (Alt. 1) or Promote Perfume (Alt. 2)
August 21
	Promote Moisturizer (Alternative 1)	Promote Perfume (Alternative 2)	Differential Effect on Income (Alternative 2)
Revenues	$fill in the blank 15198805804cf8e_1	$fill in the blank 15198805804cf8e_2	$fill in the blank 15198805804cf8e_3
Costs:
Direct materials	fill in the blank 15198805804cf8e_4	fill in the blank 15198805804cf8e_5	fill in the blank 15198805804cf8e_6
Direct labor	fill in the blank 15198805804cf8e_7	fill in the blank 15198805804cf8e_8	fill in the blank 15198805804cf8e_9
Variable factory overhead	fill in the blank 15198805804cf8e_10	fill in the blank 15198805804cf8e_11	fill in the blank 15198805804cf8e_12
Variable selling expenses	fill in the blank 15198805804cf8e_13	fill in the blank 15198805804cf8e_14	fill in the blank 15198805804cf8e_15
Sales promotion	fill in the blank 15198805804cf8e_16	fill in the blank 15198805804cf8e_17	fill in the blank 15198805804cf8e_18
Income (Loss)	$fill in the blank 15198805804cf8e_19	$fill in the blank 15198805804cf8e_20	$fill in the blank 15198805804cf8e_21

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.