REQUIREMENT 1:
To CALCULATE:
We need to calculate the profit of See Breeze Skin Cleanser after considering the Management decision on increasing in Selling Price and Decrease in volume.
REQUIREMENT 2:
To CALCULATE:
We need to calculate the Number of units to be sold to earn the earlier profit of $40,000 when there is an increase in price to $24.00 per unit sales.
Requirement 3:
To CALCULATE:
We need to calculate the % decrease in Unit sales that can be absorbed to provide the same profit of $40,000.
REQUIREMENT 4.A
To CALCULATE:
We need to calculate the Optimal selling Price using the Optimal Pricing Model as provided in the link given in the question.
REQUIREMENT 4.B
To CALCULATE:
We need to calculate the profit that company earned on such Optimal Price.
REQUIREMENT 4.C
To CALCULATE:
We need to calculate the Additional Profit that company has earned in Optimal Selling price as compared to selling price of $24.00.
REQUIREMENT 5.A
To CALCULATE:
We need to calculate the Optimal selling Price and Optimal Profit using the Optimal Pricing Model as provided in the link given in the question.
REQUIREMENT 5.B
To CALCULATE:
We need to find out which optimal price is higher as calculated in 4.a or 5.a and what the reason behind such is.
REQUIREMENT 5.C
To CALCULATE:
We need to recommend that if the unit sales decrease to 35%, would we retain the price at $20 or to go with the optimal pricing.
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Chapter 13 Solutions
CONNECT ONLINE ACCESS CODE MGRL ACCTG 21
- Cullumber Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2025, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $16,800, direct labor $10,080, and manufacturing overhead $13,440. As of January 1, Job 49 had been completed at a cost of $75,600 and was part of finished goods inventory. There was a $12,600 balance in the Raw Materials Inventory account on January 1. During the month of January, Cullumber Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $102,480 and $132,720, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $75,600 on account. 2. Incurred factory labor costs of $58,800. 3. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $10,080; and various other…arrow_forwardCullumber Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2025, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $16,800, direct labor $10,080, and manufacturing overhead $13,440. As of January 1, Job 49 had been completed at a cost of $75,600 and was part of finished goods inventory. There was a $12,600 balance in the Raw Materials Inventory account on January 1. During the month of January, Cullumber Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $102,480 and $132,720, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $75,600 on account. 2. Incurred factory labor costs of $58,800. 3. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $10,080; and various other…arrow_forwardGeneral Accounting questionarrow_forward
- What Is the correct answer A B ?? General Accounting questionarrow_forwardCullumber Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2025, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $16,800, direct labor $10,080, and manufacturing overhead $13,440. As of January 1, Job 49 had been completed at a cost of $75,600 and was part of finished goods inventory. There was a $12,600 balance in the Raw Materials Inventory account on January 1. During the month of January, Cullumber Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $102,480 and $132,720, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $75,600 on account. 2. Incurred factory labor costs of $58,800. 3. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $10,080; and various other…arrow_forwardAccounting questionarrow_forward
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