Exercise 4-32 The owner of Jessica's Baby Store must decide on the number of babies' dresses to order for the coming season. One order must be placed for the entire season. The normal sales price is P120 per dress; however, unsold dresses at season's end must be sold at half the price. The following data are available: Unit Sales CM at Regular Unit Loss at Half Price Order Quantity Price Unit Cost Sales Price 100 P120 P100 P20 P40 200 120 95 25 35 300 120 90 30 30 400 120 85 35 25 Over the past 20 seasons, Jessica has experienced the following sales: Quantity Sold 100 Frequency 200 300 8 400 The historical sales have occurred at random (i.e., they have exhibited no cvcles or trends and the future is expected to be similar to the past. REQUIRED: 1. Prepare a pay-off table representing the expected CM of each of the four possible strategies, assuming that only the four quantities listed are ever sold. 2. Compute the cost of the perfect information.

Exercise 4-32 The owner of Jessica's Baby Store must decide on the number of babies' dresses to order for the coming season. One order must be placed for the entire season. The normal sales price is P120 per dress; however, unsold dresses at season's end must be sold at half the price. The following data are available: Unit Sales CM at Regular Unit Loss at Half Price Order Quantity Price Unit Cost Sales Price 100 P120 P100 P20 P40 200 120 95 25 35 300 120 90 30 30 400 120 85 35 25 Over the past 20 seasons, Jessica has experienced the following sales: Quantity Sold 100 Frequency 200 300 8 400 The historical sales have occurred at random (i.e., they have exhibited no cvcles or trends and the future is expected to be similar to the past. REQUIRED: 1. Prepare a pay-off table representing the expected CM of each of the four possible strategies, assuming that only the four quantities listed are ever sold. 2. Compute the cost of the perfect information.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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tudent question Time to preview question: 00 : 09 : 34 What should we price Fragrance at if we want to have a 45.6% margin. Account for unit cost, period expenses and overhead. The production cost is in the report. Ignore inventory carrying costs and assume period expenses and overhead is 50% of production cost. What should the price point be? Info given for Fragrance: Category Sales $28,413 Variable Costs Direct Material $11,755 Direct Labor $7,763 Inventory Carry $76 Total Variable Costs (Labor, Material, Carry) $19,594 Category Contribution Margin $8,819 Period Costs Depreciation $1,193 SG&A $0 R&D $970 Promotions $1,245 Sales $1,795 Administration $225 Total Period Costs $5,428 Net Margin $3,391 Current Price $38 Current Contribution Margin 31% Total units produced this year 748 Material cost per unit: $16.12 Labor cost per unit: 10.38 PRICING OPTIONS: 26.50 46.38 72.80 39.75 52.21 Please include all calculations
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The Beach Umbrella is a take-out food store at a popular beach resort. Susan Miller, owner of the Beach Umbrella, is deciding how much refrigerator space to devote to four different drinks. Pertinent data on these four drinks are as follows: (Click to view the data.) Miller has a maximum front shelf space of 12 feet to devote to the four drinks. She wants a minimum of 1 foot and a maximum of 6 feet of front shelf space for each drink. Read the requirements. Requirement 1. Calculate the contribution margin per case of each type of drink. Selling price per case Variable cost per case Contribution margin per case Requirements $ Cola Lemonade 18.25 $ 14.40 20.75 $ 15.60 Punch 27.70 $ 20.10 Natural Orange Juice 39.25 30.40 1. Calculate the contribution margin per case of each type of drink. 2. A coworker of Miller's recommends that she maximize the shelf space devoted to those drinks with the highest contribution margin per case. Do you agree with this recommendation? Explain briefly. 3.…
Question 1 1-pts You own Souvenir Gallore, a souvenir shop on Lane Avenue. You would like to do an ABC analysis based on annual dollar usage. You sell the following list of retail items in your store. Annual demand Items Unit cost (units) Greeting cards 10,000 $1.50 Key chains 975 $15.50 Candleholders 700 $35.00 Caps 775 $19.50 Calendars 350 $32.00 Watches 380 $25.00 The annual dollar usage of watches is $ and the ABC class that watches belong to is G Search or type URL 23 2$ & 3 7 8. E R T Y U < CO
Question 2 Joan Zorba orders calculators for her office supply stores. Each calculator cost $35, currently she is ordering 230. Daily demand for these calculators is 5. The cost to re-order this item is estimated at $44, while the annual inventory holding cost is 22%. Orders are received two working days after an order is placed. The office operates 52 weeks per year, 5 days per week Determine the reorder point using EOQ. Greater than or equal to 43 and less than or equal to 49 Greater than or equal to 431 and less than or equal to 443 Greater than or equal to 2053 and less than or equal to 2064 Greater than or equal to 6 and less than or equal to 25 4 pts < Previous Next VIV
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REQUIREMENT NUMBER 4&5
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CARNING SYSTEM (ACADEMI entory Management - Spring21 Time left 1:39:43 XYZ Company is specialized in mangoes distribution in the city of Muscat. Sales are 400 boxes (unit) per month. It costs. OR 10 to make and receive an order and holding cost is OR 3.5 per box per year. The prices depend on quantities ion purchased such that the order quantities from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. If the discount option is considered, then the best decision that minimizes the total annual inventory cost is ut of O a 200 units. Total cost=27,240 O b. 500 units. Total cost = 20.171 O c. 450 units. Total cost = 23,500 O d. Noneis correct O e. 185 units, Total cost= 30,649 NEXT PAGE EVIOUS PAGE
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The Walton Toy Company manufactures four dolls and a sewing kit. It provided the following data for next year: Demand Next Selling Price year (units) per Unit 61,000 $ 20.00 53,000 46,000 Direct Materials $ 5.40 $2.20 $ 8.09 $ 3.10 $ 6.50 $33.50 44,400 $14.00 336,000 $ 9.10 $ 4.30 Product Debbie Trish Sarah Mike Sewing kit The following additional information is available: a. The company's plant has a capacity of 113,140 direct labor-hours per year on a single-shift basis. Each employee and piece of equipment are capable of making all five products. b. Next year's direct labor pa rate will be $9 per hour. c. Fixed manufacturing costs total $630,000 per year. Variable overhead costs are $2 per direct labor-hour. d. All of the company's nonmanufacturing costs are fixed. e. The company's finished goods inventory is negligible and can be ignored. Required: 1. How many direct labor-hours are used to manufacture one unit of each of the company's five products? 2. How much variable overhead…
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