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 a. Variable review (production) cost per unit b. Variable total cost per unit c. Full cost per unit d. Full absorption cost per unit e. Prime cost per unit f. Conversion cost per unit g. Contribution margin per unit h. Gross margin per unit Review overhead Selling and administration (e.g., scheduling and billing) Number of reviews per month Required: 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 $ 500 50,000 70,000 2,000 Reviews 250 40 10 20 30 2,500 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 a. Variable review (production) cost per unit b. Variable total cost per unit c. Full cost per unit d. Full absorption cost per unit e. Prime cost per unit f. Conversion cost per unit g. Contribution margin per unit h. Gross margin per unit Review overhead Selling and administration (e.g., scheduling and billing) Number of reviews per month Required: 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 $ 500 50,000 70,000 2,000 Reviews 250 40 10 20 30 2,500 reviews
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter13: Lean Manufacturing And Activity Analysis
Section: Chapter Questions
Problem 1TIF: Ethics in Action In August, Lannister Company introduced a new performance measurement system in...
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Transcribed Image Text: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
a. Variable review (production) cost per unit
b. Variable total cost per unit
c. Full cost per unit
d. Full absorption cost per unit
e. Prime cost per unit
f. Conversion cost per unit
g. Contribution margin per unit
h. Gross margin per unit
2,500
Reviews
$ 500
Review overhead
Selling and administration (e.g., scheduling and billing)
Number of reviews per month
Required:
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.
2,000
Reviews
50,000
70,000
250
40
10
20
30
2,500 reviews
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