Elmo Security Consultants (ESC) offer a standardized review of data security for small business owners. The following data apply to the provision of these reviews: Sales price per unit (1 unit = 1 review with recommendations) Fixed costs (per month): Selling and administration Production overhead (e.g., rent of facilities) Variable costs (per review): Labor for oversight and feedback Outsourced security analysis Materials used in reviews Review overhead Selling and administration (e.g., scheduling and billing) Number of reviews per month Required: d. Full absorption cost per unit e. Prime cost per unit t Conversion cost per unit 9. Contribution margin per unit h. Gross margin per uni! Calculate the amount for each of the following (one unit = one review) if the number of reviews is 2.500 per month. Also calculate if the number of reviews decreases to 2.000 per month. 2,500 Reviews $ 508 50,000 70,000 2,000 Reviews 250 48 18 28 38 2,508 reviews
Elmo Security Consultants (ESC) offer a standardized review of data security for small business owners. The following data apply to the provision of these reviews: Sales price per unit (1 unit = 1 review with recommendations) Fixed costs (per month): Selling and administration Production overhead (e.g., rent of facilities) Variable costs (per review): Labor for oversight and feedback Outsourced security analysis Materials used in reviews Review overhead Selling and administration (e.g., scheduling and billing) Number of reviews per month Required: d. Full absorption cost per unit e. Prime cost per unit t Conversion cost per unit 9. Contribution margin per unit h. Gross margin per uni! Calculate the amount for each of the following (one unit = one review) if the number of reviews is 2.500 per month. Also calculate if the number of reviews decreases to 2.000 per month. 2,500 Reviews $ 508 50,000 70,000 2,000 Reviews 250 48 18 28 38 2,508 reviews
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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