Cost Accounting, Student Value Edition (15th Edition)
Cost Accounting, Student Value Edition (15th Edition)
15th Edition
ISBN: 9780133428858
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
Question
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Chapter 13, Problem 13.25P

1.

To determine

To calculate: Total sales revenue, selling price, rate of return on investment and markup percentage on full cost of product for the year 2014.

Given information:

2014,

Variable costs are $2,000,000.

Fixed costs are $2,500,000.

Operating income is $180,000.

Number of units sold are 500,000.

Total investment is $ 2,250,000

2.

To determine

To calculate: New selling price.

Given information:

Reduction in fixed cost is by $225,000.

Reduction is per unit sale price is by $0.30.

3.

To determine

To calculate: Operating income with reduction in units sold by 5%.

4.

To determine

Concerns in implementing CEO’s plan.

Blurred answer
Students have asked these similar questions
i need financial question with correct solution
Lawrence Industries plans to produce 30,000 units next period at a denominator activity of 45,000 direct labor hours. The direct labor wage rate is $16.00 per hour. The company's standards allow 2.2 yards of direct materials for each unit of product; the material costs $8.50 per yard. The company's budget includes a variable manufacturing overhead cost of $3.25 per direct labor hour and fixed manufacturing overhead of $270,000 per period. Using 45,000 direct labor hours as the denominator activity, compute the predetermined overhead rate and break it down into variable and fixed elements.
Can you show me the correct approach to solve this financial accounting problem using suitable standards?
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