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Why do changes in busines

Why do changes in busines

FINANCIAL ACCOUNTING
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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agement buys enough of the company's shares of stock to take control of the poration. Why do changes in business process management affect management ?accounting Management accountants specialize in designing manufacturing cells to streamline production processes. They all affect the number of workers employed and management accountants are involved in human resources. Management accountants are experts in designing plant layout changes. O They all affect product costs and management accountants measure product costs. Changes in business process management has no effect on management accounting. O per unit. If the sales price of a unit is $12.00 and we produce and sell 8,000 units, the company's average cost per unit will be 4 A company has monthly fixed costs of $36.000. The variable costs are $2.50 $ 7.00 per unit. O S 2.50 per unit. O HEWLETT-PACKARD
Transcribed Image Text:agement buys enough of the company's shares of stock to take control of the poration. Why do changes in business process management affect management ?accounting Management accountants specialize in designing manufacturing cells to streamline production processes. They all affect the number of workers employed and management accountants are involved in human resources. Management accountants are experts in designing plant layout changes. O They all affect product costs and management accountants measure product costs. Changes in business process management has no effect on management accounting. O per unit. If the sales price of a unit is $12.00 and we produce and sell 8,000 units, the company's average cost per unit will be 4 A company has monthly fixed costs of $36.000. The variable costs are $2.50 $ 7.00 per unit. O S 2.50 per unit. O HEWLETT-PACKARD
MERSİN ÜNİVERSIT.. Eagle Sales has developed the following budgeted income statement. The company is experimenting with new engineering techniques and believes it can reduce variable cost to $4 per unit and significantly improve the product. The innovations would increase fixed cost to $10,000 but the company expects to be able to increase sales to 3,000 units with an mproved product. Assuming Eagle decides to pursue this strategy, by what ?amount would the budgeted profit change Sales Revenue (2,500 units x $10 sales price) Total Variable Expenses (2,500 x $6 per unit). 15,000) Contribution Margin Fixed Expenses $25,000 10,000 w6,000) $4.000 Net Income increase by $14,000 decrease by $10,000 increase by $4,000 O decrease by $4,000 decrease by $14,000 O Sunbucks Coffee sells three small coffees for every one large ones. A small coffee sells for $4 per cup, with a variable cost of $2.00 per cup. A large hp
Transcribed Image Text:MERSİN ÜNİVERSIT.. Eagle Sales has developed the following budgeted income statement. The company is experimenting with new engineering techniques and believes it can reduce variable cost to $4 per unit and significantly improve the product. The innovations would increase fixed cost to $10,000 but the company expects to be able to increase sales to 3,000 units with an mproved product. Assuming Eagle decides to pursue this strategy, by what ?amount would the budgeted profit change Sales Revenue (2,500 units x $10 sales price) Total Variable Expenses (2,500 x $6 per unit). 15,000) Contribution Margin Fixed Expenses $25,000 10,000 w6,000) $4.000 Net Income increase by $14,000 decrease by $10,000 increase by $4,000 O decrease by $4,000 decrease by $14,000 O Sunbucks Coffee sells three small coffees for every one large ones. A small coffee sells for $4 per cup, with a variable cost of $2.00 per cup. A large hp
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