Exercise 3: The accounting department of an industrial company shows the following data: The turnover is 833.600 €, the total costs are 838.000 € of which 35.8% are variable. Required: Calculate the financial result with the contribution margin method! A customer would purchase 8.500 units but he is only prepared to pay 21.50 €. The company calculates 26.90 € costs for one unit of which 15.40 € is variable. The company has sufficient production capacity to produce the additional 8.500 units. Required: Should the company accept this inquiry and prove your answer with figures. Calculate the new financial result if the company accepts this inquiry.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Please don't give image format
Exercise 3:
The accounting department of an industrial company shows the following data:
The turnover is 833.600 €, the total costs are 838.000 € of which 35.8% are variable.
Required: Calculate the financial result with the contribution margin method!
A customer would purchase 8.500 units but he is only prepared to pay 21.50 €.
The company calculates 26.90 € costs for one unit of which 15.40 € is variable.
The company has sufficient production capacity to produce the additional 8.500 units.
Required: Should the company accept this inquiry and prove your answer with
figures. Calculate the new financial result if the company accepts this inquiry.
Transcribed Image Text:Exercise 3: The accounting department of an industrial company shows the following data: The turnover is 833.600 €, the total costs are 838.000 € of which 35.8% are variable. Required: Calculate the financial result with the contribution margin method! A customer would purchase 8.500 units but he is only prepared to pay 21.50 €. The company calculates 26.90 € costs for one unit of which 15.40 € is variable. The company has sufficient production capacity to produce the additional 8.500 units. Required: Should the company accept this inquiry and prove your answer with figures. Calculate the new financial result if the company accepts this inquiry.
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education