Contribution margin is the excess of sales revenue generated over and over above the variable cost incurred for the sales generated. The contribution margin is a amount contributed towards fixed cost and net operating income of the company. Requirement 1: Thetotal contribution margin earned by the company.

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Answer 1

Question

Chapter 24, Problem P24.36BPGB

To determine

Contribution margin is the excess of sales revenue generated over and over above the variable cost incurred for the sales generated. The contribution margin is a amount contributed towards fixed cost and net operating income of the company.

Requirement 1:

Thetotal contribution margin earned by the company.

To determine

Requirement 2:

The Total contribution margin when the cushion is purchased from in house.

To determine

Requirement 3:

The Total contribution margin when the transfer is made at current variable cost of selling division.

To determine

Requirement 4:

The best option to be choose from the alternatives available.

To determine

Requirement 5:

The transfer price and total contribution margin earned when the cushion division is having an excess capacity.

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ABF's metal spare parts manufacturing company uses the customised production method by attributing the GST to the products it produces with the help of predetermined attribution coefficients. The processing of metal parts is carried out in two production departments: the Cutting and Drilling department, and the Assembly department. The GIS attribution coefficients for the two departments are based on the operating hours of machines and the cost of direct work respectively. At the beginning of the year, the following budgets were implemented: Cutting and Drilling Department Assembly Department Direct Labor Costs (in euros) 1.320.000 2.000.000 G.B.E. (in euros) 4.800.000 2.400.000 Machinery Operating Hours 80.000 5.000 Direct Work Hours 27.000 12.000 Requested: To calculate the coefficient of attribution of the General Secretariat that will be used in each department. (4 units) To determine the production cost per unit for order 158 which…

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Answer 2

Question

Chapter 24, Problem P24.36BPGB

To determine

Contribution margin is the excess of sales revenue generated over and over above the variable cost incurred for the sales generated. The contribution margin is a amount contributed towards fixed cost and net operating income of the company.

Requirement 1:

Thetotal contribution margin earned by the company.

To determine

Requirement 2:

The Total contribution margin when the cushion is purchased from in house.

To determine

Requirement 3:

The Total contribution margin when the transfer is made at current variable cost of selling division.

To determine

Requirement 4:

The best option to be choose from the alternatives available.

To determine

Requirement 5:

The transfer price and total contribution margin earned when the cushion division is having an excess capacity.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 24, Problem P24.36BPGB

To determine

Contribution margin is the excess of sales revenue generated over and over above the variable cost incurred for the sales generated. The contribution margin is a amount contributed towards fixed cost and net operating income of the company.

Requirement 1:

Thetotal contribution margin earned by the company.

To determine

Requirement 2:

The Total contribution margin when the cushion is purchased from in house.

To determine

Requirement 3:

The Total contribution margin when the transfer is made at current variable cost of selling division.

To determine

Requirement 4:

The best option to be choose from the alternatives available.

To determine

Requirement 5:

The transfer price and total contribution margin earned when the cushion division is having an excess capacity.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 24, Problem P24.36BPGB

To determine

Contribution margin is the excess of sales revenue generated over and over above the variable cost incurred for the sales generated. The contribution margin is a amount contributed towards fixed cost and net operating income of the company.

Requirement 1:

Thetotal contribution margin earned by the company.

To determine

Requirement 2:

The Total contribution margin when the cushion is purchased from in house.

To determine

Requirement 3:

The Total contribution margin when the transfer is made at current variable cost of selling division.

To determine

Requirement 4:

The best option to be choose from the alternatives available.

To determine

Requirement 5:

The transfer price and total contribution margin earned when the cushion division is having an excess capacity.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 24, Problem P24.36BPGB

To determine

Contribution margin is the excess of sales revenue generated over and over above the variable cost incurred for the sales generated. The contribution margin is a amount contributed towards fixed cost and net operating income of the company.

Requirement 1:

Thetotal contribution margin earned by the company.

To determine

Requirement 2:

The Total contribution margin when the cushion is purchased from in house.

To determine

Requirement 3:

The Total contribution margin when the transfer is made at current variable cost of selling division.

To determine

Requirement 4:

The best option to be choose from the alternatives available.

To determine

Requirement 5:

The transfer price and total contribution margin earned when the cushion division is having an excess capacity.

Answer 6

Chapter 24, Problem P24.36BPGB

To determine

Contribution margin is the excess of sales revenue generated over and over above the variable cost incurred for the sales generated. The contribution margin is a amount contributed towards fixed cost and net operating income of the company.

Requirement 1:

Thetotal contribution margin earned by the company.

Answer 7

Chapter 24, Problem P24.36BPGB

To determine

Contribution margin is the excess of sales revenue generated over and over above the variable cost incurred for the sales generated. The contribution margin is a amount contributed towards fixed cost and net operating income of the company.

Requirement 1:

Thetotal contribution margin earned by the company.

Answer 8

To determine

Requirement 2:

The Total contribution margin when the cushion is purchased from in house.

Answer 9

To determine

Requirement 2:

The Total contribution margin when the cushion is purchased from in house.

Answer 10

To determine

Requirement 3:

The Total contribution margin when the transfer is made at current variable cost of selling division.

Answer 11

To determine

Requirement 3:

The Total contribution margin when the transfer is made at current variable cost of selling division.

Answer 12

To determine

Requirement 4:

The best option to be choose from the alternatives available.

Answer 13

To determine

Requirement 4:

The best option to be choose from the alternatives available.

Answer 14

To determine

Requirement 5:

The transfer price and total contribution margin earned when the cushion division is having an excess capacity.

Answer 15

To determine

Requirement 5:

The transfer price and total contribution margin earned when the cushion division is having an excess capacity.

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

Ch. 24 - Prob. 1QC Ch. 24 - Which is not one of the potential advantages of...Ch. 24 - The Quaker Foods division of PepsiCo is most...Ch. 24 - Which of the following is not a goal of...Ch. 24 - Which of the following balanced scorecard...Ch. 24 - The performance evaluation of a cost center is...Ch. 24 - Prob. 7QC Ch. 24 - Prob. 8QC Ch. 24 - Prob. 9QC Ch. 24 - Prob. 10QC

Requirement 2: The Total contribution margin when the cushion is purchased from in house.

Requirement 3: The Total contribution margin when the transfer is made at current variable cost of selling division.

Requirement 4: The best option to be choose from the alternatives available.

Requirement 5: The transfer price and total contribution margin earned when the cushion division is having an excess capacity.

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Chapter 24 Solutions

Requirement 2:

The Total contribution margin when the cushion is purchased from in house.

Requirement 3:

The Total contribution margin when the transfer is made at current variable cost of selling division.

Requirement 4:

The best option to be choose from the alternatives available.

Requirement 5:

The transfer price and total contribution margin earned when the cushion division is having an excess capacity.