Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781337517386
Author: WARREN
Publisher: Cengage
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Chapter 12, Problem 12.4.3MBA
Contribution margin per constraint
Using the data and your answers from MBA 12-2, determine the following:
Assuming the selling price and variable costs for Laminated glass cannot be changed, how much will the furnace hours required for Laminated glass need to Ix- reduced to make it as profitable as Regular glass.
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REQUIREDStudy the information given below and answer each of the following questions INDEPENDENTLY:3.1 Calculate the margin of safety (in units). 3.2 Calculate the total Contribution Margin and Operating Profit/Loss, if the direct materialsare expected to cost R30 per unit more and fixed manufacturing overhead costs are 10%greater than projected. 3.3 Calculate the variable cost per unit to break even, if the fixed costs and selling price perunit remain the same but the break-even quantity changes to 6 000 units. 3.4 Use the contribution margin ratio to determine the level of sales in Rands required toobtain an operating profit of R1 950 000. 3.5 Alpha Limited wants to eliminate the variable selling expenses by employing a salariedsales force. If the company sells 14 250 units, how much could it pay in salaries to thesales staff and still have a profit of R16 800 000? INFORMATIONAlpha Limited manufactures and sells its own brand of guitars. Each guitar sells for R3 000 and the…
Do not give solution in image format thanku
How do you calcuate the Lower-of-Cost-or-Market ?
Problem : If cost is $13
Replacement cost is $16
Ceiling of $20
Floor is $15.
What is the LCM?
Chapter 12 Solutions
Survey of Accounting (Accounting I)
Ch. 12 - Mario Company is considering discontinuing a...Ch. 12 - Victor Company is considering disposing of...Ch. 12 - Prob. 3SEQCh. 12 - For which cost concept used in applying (he...Ch. 12 - Prob. 5SEQCh. 12 - Prob. 1CDQCh. 12 - Prob. 2CDQCh. 12 - A company could sell a building for $650,000 or...Ch. 12 - Prob. 4CDQCh. 12 - Prob. 5CDQ
Ch. 12 - A company fabricates a component at a cost of...Ch. 12 - Prob. 7CDQCh. 12 - Prob. 8CDQCh. 12 - Prob. 9CDQCh. 12 - Prob. 10CDQCh. 12 - Prob. 11CDQCh. 12 - Prob. 12CDQCh. 12 - Lease or sell decision Orwell Industries is...Ch. 12 - Prob. 12.2ECh. 12 - Prob. 12.3ECh. 12 - Prob. 12.4ECh. 12 - Prob. 12.5ECh. 12 - Make-or-buy decision Watts Technologies Company...Ch. 12 - Make-or-buy decision Wisconsin Arts of Milwaukee...Ch. 12 - Machine replacement decision Creekside Products...Ch. 12 - Differential analysis report for machine...Ch. 12 - Sell or process further St. Paul Lumber Company...Ch. 12 - Prob. 12.11ECh. 12 - Decision on accepting additional business Madison...Ch. 12 - Accepting business at a special price Palomar...Ch. 12 - Prob. 12.14ECh. 12 - Total cost concept of product costing Willis...Ch. 12 - Product cost concept of product pricing Based on...Ch. 12 - Variable cost concept of product pricing Based on...Ch. 12 - Target costing Toyota Motor Corporation (TM) uses...Ch. 12 - Differential analysis report involving opportunity...Ch. 12 - Prob. 12.1.2PCh. 12 - Prob. 12.1.3PCh. 12 - Differential analysis report for machine...Ch. 12 - Differential analysis report for machine...Ch. 12 - Differential analysis report for sales promotion...Ch. 12 - Differential analysis report for sales promotion...Ch. 12 - Differential analysis report for further...Ch. 12 - Prob. 12.4.2PCh. 12 - Product pricing using the cost-plus approach...Ch. 12 - Prob. 12.5.2PCh. 12 - Prob. 12.5.3PCh. 12 - Product pricing using the cost-plus approach...Ch. 12 - Prob. 12.5.5PCh. 12 - Product pricing using the cost-plus approach...Ch. 12 - Prob. 12.1MBACh. 12 - Prob. 12.2MBACh. 12 - Prob. 12.3.1MBACh. 12 - Contribution margin per constraint Using the data...Ch. 12 - Prob. 12.3.3MBACh. 12 - Contribution margin per constraint Using the data...Ch. 12 - Prob. 12.4.2MBACh. 12 - Contribution margin per constraint Using the data...Ch. 12 - Prob. 12.5.1MBACh. 12 - Prob. 12.5.2MBACh. 12 - Prob. 12.5.3MBACh. 12 - Product pricing Bev Frazier is a cost accountant...Ch. 12 - Prob. 12.2CCh. 12 - Prob. 12.3CCh. 12 - Cost-plus and target costing concepts The...Ch. 12 - Cost-plus and target costing concepts The...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Contribution margin per constraint Using the data and your answers from MBA 12-2, determine the following: The selling price necessary for Laminated glass to be as profitahle as Regular glass.arrow_forwardThe Shine Company, which manufactures projection equipment, is ready to introduce a new line of portable projectors. The following data are available for a proposed model: Variable manufacturing costs Applied fixed manufacturing overhead Variable selling and administrative costs Applied fixed selling and administrative costs What price will the company charge if the firm uses cost-plus pricing based on total variable cost and a markup percentage of 235%? Multiple Choice $1,565.25. $1,700.25. $1,835.25. $2,060.25. None of these answer choices is correct. $ 440 220 175 190arrow_forwardAn automated turning machine is the current constraint at Jordison Corporation. Three products use this constrained resource. Data concerning those products appear below: Selling price per unit Variable cost per unit Minutes on the constraint Multiple Choice O Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized. (Round your intermediate calculations to 2 decimal places.) O JQ, RQ, LN RQ, LN, JQ RQ, JQ, LN LN $160.46 $ 106.40 3.40 LN, JQ, RQ JQ $ 346.18 $ 281.70 5.20 RQ $ 409.29 $ 311.25 8.60arrow_forward
- Need help solving this, please.arrow_forwardRequired: A. For each model, compute the contribution margin per unit. B. For each model, compute the contribution margin per Direct Labor hour. C. If there is excess capacity, which model is the most profitable to produce? Why? D. If there is labor crisis, which model is the most profitable to produce? Why?arrow_forwardUse the following information for the next 2 questions (8 & 9). Division X produces and sells a product to external and internal customers. Per-unit information about its operations include: Selling price per unit to external customers $250 Variable manufacturing costs per unit 115 Fixed manufacturing overhead costs per unit 70 8. If X is operating at capacity and has unlimited external customer demand, what should be the minimum transfer price? 9. If X has sufficient excess capacity to meet internal demand, what should be the minimum transfer price?arrow_forward
- Please answer with explanation. I will really upvotearrow_forwardYour boss would like you to estimate the fixed and variable components of a particular cost Actual data for this cost over four recent periods appear below. Activity Cost Period 1 22 235 Period 2 23 243 Period 3 25 255 Period 4 20 227 Using the least-squares regression method, what is the cost formula for this cost? Y = P107.45 + P5.89X O Y = P0.00 + P10.67X O Y = P111.92 + P5.69X O Y = P120.81 + P3.56Xarrow_forwardYour manager would like you to conduct sensitivity analysis to see how changing both the price and unit cost of a product affect profits. The following data is provided to you. Which of the following actions needs to be completed before building a data table? 26 27 Price 28 Demand 29 Unit cost 30 Fixed cost 31 Revenue 32 Variable cost 33 Profit B с 50.00 28,000.0 12.00 D E Copied Cells 50.0 62,000.0 1,400,000.0=C28 C27 336,000.0=C28 C29 1,798,000.0 SUM(C31,C32.C30) Select one: The incorrect cells have been 'copied' and this will result in a 12.0arrow_forward
- Use this information for Carmen Co. to answer the question that follow. Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $23.05 per pound and costs $14.35 per pound to produce. Product D would sell for $40.95 per pound and would require an additional cost of $10.35 per pound to produce. What is the differential cost of producing Product D? a.$6.21 per pound b.$10.35 per pound c.$12.42 per pound d.$8.28 per poundarrow_forwardWhich of the following would decrease unit contribution margin the most? (Hint: assume amounts, then simulate each condition/option independently. 15% decrease in selling price 15% increase in selling price 15% decrease in variable costs and expenses 15% increase in variable costs and expenses Group of answer choices 1 2 3 4arrow_forward4. Assuming direct labor is a fixed cost: a. Determine the number of WVD drums (if any) that should be purchased and the number of WVD drums and/or bike frames (if any) that should be manufactured. b. What is the increase (decrease) in net operating income that would result from this plan over current operations? 5. Compute the contribution margin per unit. [assume direct labor is a variable cost] 6. Compute the contribution margin per welding hour. [assume direct labor is a variable cost]arrow_forward
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