Explain the activity based management and describe the relationship with the constant improvement.

Question

Scarce resource; discontinued product lines; negative contribution marginThe officers of Bardwell Company are reviewing the profitability of the company’s four products and the potential effects of several proposals for varying the product mix. The following is an excerpt from the income statement and other data. Total Product P Product Q Product R Product S Sales $62,600 $10,000 $18,000 $12,600 $22,000 Cost of goods sold (44,274) (4,750) (7,056) (13,968) (18,500) Gross profit $18,326 $5,250 $10,944 $(1,368) $3,500 Operating expenses (12,004) (1,990) (2,968) (2,826) (4,220) Income before taxes 6,322 $3,260 $7,976 $(4,194) $(720) Units sold 1,000 1,200 1,800 2,000 Sales price per unit $10.00 $15.00 $7.00 $11.00 Variable cost of goods sold 2.50 3.00 6.50 6.00 Variable operating expenses 1.17 1.25 1.00 1.20 Each of the following proposals is to be considered independently of the other proposals. Consider only the product changes stated in each…

Answer 1

Question

Chapter 12, Problem 26P

1.

To determine

Explain the activity based management and describe the relationship with the constant improvement.

2.

To determine

Classify the non-value added cost and calculate the cost savings per unit that will be realized, if non-value added is eliminated. Comment regarding the assessment of preliminary cost reduction done by person C and explain the steps to the company to reduce or eliminate the non-value added activities.

3.

To determine

Calculate the target cost required maintaining the current market share and target cost required to expand the sales by 50 percent, if earning a profit of $6 per unit and calculate the cost reduction to achieve the target.

4.

To determine

Determine the activity management under given situation.

5.

To determine

Calculate the income for the company based on current sales price and using the selling price of $21 and $18. Choose any one selling price.

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Scarce resource; discontinued product lines; negative contribution marginThe officers of Bardwell Company are reviewing the profitability of the company’s four products and the potential effects of several proposals for varying the product mix. The following is an excerpt from the income statement and other data. Total Product P Product Q Product R Product S Sales $62,600 $10,000 $18,000 $12,600 $22,000 Cost of goods sold (44,274) (4,750) (7,056) (13,968) (18,500) Gross profit $18,326 $5,250 $10,944 $(1,368) $3,500 Operating expenses (12,004) (1,990) (2,968) (2,826) (4,220) Income before taxes 6,322 $3,260 $7,976 $(4,194) $(720) Units sold 1,000 1,200 1,800 2,000 Sales price per unit $10.00 $15.00 $7.00 $11.00 Variable cost of goods sold 2.50 3.00 6.50 6.00 Variable operating expenses 1.17 1.25 1.00 1.20 Each of the following proposals is to be considered independently of the other proposals. Consider only the product changes stated in each…

Analyzing one company's make or buy and special order proposals OneCo is a retail organization in the Northeast that sells upscale clothing. Each year, store managers (in consultation with their supervisors) establish financial goals; a monthly reporting system captures actual performance. OneCo Inc. produces a single product. Cost per unit, based on the manufacture and sale of 10,000 units per month at full capacity, is shown below. Product costs Direct materials $4.00 Direct labor 1.30 Variable overhead 2.50 Fixed overhead 3.40 Sales commission 0.90 $12.10 The $0.90 sales commission is paid for every unit sold through regular channels. Market demand is such that OneCo is operating at full capacity, and the firm has found it can sell all it can produce at the market price of $16.50. Currently, OneCo is considering two separate proposals: · Gatsby, Inc. has offered to buy 1,000 units at $14.35 each. Sales commission would be $0.35 on this special order. ·…

MYS App Ch 1 M Ques M X Chat Use ta gaut Soluta acco a webs a wear a acco calcuTelesa Requ /ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fconnect.mheducation.com%252Fconnect ework i ces Saved [The following information applies to the questions displayed below.] The first production department in a process manufacturing system reports the following unit data. Beginning work in process inventory Units started and completed 35,200 units 52,800 units Units completed and transferred out Ending work in process inventory 88,000 units 17,900 units Help Save & Exercise 16-4 (Algo) Weighted average: Computing equivalent units LO P1 Prepare the production department's equivalent units of production for direct materials under each of the following three separate assumptions using the weighted average method for process costing. Equivalent Units of Production (EUP)-Weighted Average Method 1. All direct materials are added to products when…

Answer 2

Question

Chapter 12, Problem 26P

1.

To determine

Explain the activity based management and describe the relationship with the constant improvement.

2.

To determine

Classify the non-value added cost and calculate the cost savings per unit that will be realized, if non-value added is eliminated. Comment regarding the assessment of preliminary cost reduction done by person C and explain the steps to the company to reduce or eliminate the non-value added activities.

3.

To determine

Calculate the target cost required maintaining the current market share and target cost required to expand the sales by 50 percent, if earning a profit of $6 per unit and calculate the cost reduction to achieve the target.

4.

To determine

Determine the activity management under given situation.

5.

To determine

Calculate the income for the company based on current sales price and using the selling price of $21 and $18. Choose any one selling price.

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Answer 3

Question

Chapter 12, Problem 26P

1.

To determine

Explain the activity based management and describe the relationship with the constant improvement.

2.

To determine

Classify the non-value added cost and calculate the cost savings per unit that will be realized, if non-value added is eliminated. Comment regarding the assessment of preliminary cost reduction done by person C and explain the steps to the company to reduce or eliminate the non-value added activities.

3.

To determine

Calculate the target cost required maintaining the current market share and target cost required to expand the sales by 50 percent, if earning a profit of $6 per unit and calculate the cost reduction to achieve the target.

4.

To determine

Determine the activity management under given situation.

5.

To determine

Calculate the income for the company based on current sales price and using the selling price of $21 and $18. Choose any one selling price.

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Answer 4

Question

Chapter 12, Problem 26P

1.

To determine

Explain the activity based management and describe the relationship with the constant improvement.

2.

To determine

Classify the non-value added cost and calculate the cost savings per unit that will be realized, if non-value added is eliminated. Comment regarding the assessment of preliminary cost reduction done by person C and explain the steps to the company to reduce or eliminate the non-value added activities.

3.

To determine

Calculate the target cost required maintaining the current market share and target cost required to expand the sales by 50 percent, if earning a profit of $6 per unit and calculate the cost reduction to achieve the target.

4.

To determine

Determine the activity management under given situation.

5.

To determine

Calculate the income for the company based on current sales price and using the selling price of $21 and $18. Choose any one selling price.

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Answer 5

Chapter 12, Problem 26P

1.

To determine

Explain the activity based management and describe the relationship with the constant improvement.

2.

To determine

Classify the non-value added cost and calculate the cost savings per unit that will be realized, if non-value added is eliminated. Comment regarding the assessment of preliminary cost reduction done by person C and explain the steps to the company to reduce or eliminate the non-value added activities.

3.

To determine

Calculate the target cost required maintaining the current market share and target cost required to expand the sales by 50 percent, if earning a profit of $6 per unit and calculate the cost reduction to achieve the target.

4.

To determine

Determine the activity management under given situation.

5.

To determine

Calculate the income for the company based on current sales price and using the selling price of $21 and $18. Choose any one selling price.

Answer 6

Chapter 12, Problem 26P

1.

To determine

Explain the activity based management and describe the relationship with the constant improvement.

Answer 7

Chapter 12, Problem 26P

1.

To determine

Explain the activity based management and describe the relationship with the constant improvement.

Answer 8

2.

To determine

Classify the non-value added cost and calculate the cost savings per unit that will be realized, if non-value added is eliminated. Comment regarding the assessment of preliminary cost reduction done by person C and explain the steps to the company to reduce or eliminate the non-value added activities.

Answer 9

2.

To determine

Classify the non-value added cost and calculate the cost savings per unit that will be realized, if non-value added is eliminated. Comment regarding the assessment of preliminary cost reduction done by person C and explain the steps to the company to reduce or eliminate the non-value added activities.

Answer 10

3.

To determine

Calculate the target cost required maintaining the current market share and target cost required to expand the sales by 50 percent, if earning a profit of $6 per unit and calculate the cost reduction to achieve the target.

Answer 11

3.

To determine

Calculate the target cost required maintaining the current market share and target cost required to expand the sales by 50 percent, if earning a profit of $6 per unit and calculate the cost reduction to achieve the target.

Answer 12

4.

To determine

Determine the activity management under given situation.

Answer 13

4.

To determine

Determine the activity management under given situation.

Answer 14

5.

To determine

Calculate the income for the company based on current sales price and using the selling price of $21 and $18. Choose any one selling price.

Answer 15

5.

To determine

Calculate the income for the company based on current sales price and using the selling price of $21 and $18. Choose any one selling price.

Answer 16

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Answer 17

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Answer 27

Ch. 12 - What are the two dimensions of the activity-based...Ch. 12 - What is driver analysis? What role does it play in...Ch. 12 - What is activity analysis? Why is this approach...Ch. 12 - What are value-added activities? Value-added...Ch. 12 - What are non-value-added activities?...Ch. 12 - Identify and define four different ways to manage...Ch. 12 - What is a kaizen standard? Describe the kaizen and...Ch. 12 - Prob. 8DQ Ch. 12 - Prob. 9DQ Ch. 12 - Prob. 10DQ

Explain the activity based management and describe the relationship with the constant improvement.

Solution Summary: The author explains the concept of activity based management and its relationship with the constant improvement.

Explain the activity based management and describe the relationship with the constant improvement.

Calculate the target cost required maintaining the current market share and target cost required to expand the sales by 50 percent, if earning a profit of $6 per unit and calculate the cost reduction to achieve the target.

Determine the activity management under given situation.

Calculate the income for the company based on current sales price and using the selling price of $21 and $18. Choose any one selling price.

Chapter 12 Solutions