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XYZ Company uses activity-based pricing. The company prices their products by charging customers the direct cost by using a markup of 35% on the direct cost plus adding service cost that are provided. The service costs are $7.50 per order, $3.00 for each product ordered, and a $2.00 per pound shipping charge.
Ben Corporation made ordered from XYX 12 orders for goods with a total direct cost of $6,000. Wilson ordered 40 different products that weighed a total of 600 lbs. What price did Ben Corporation pay?
The Windshield division of Fast Car Co. makes windshields for use in Fast Car's Assembly division.
Maryanne Dinardo manages an auto dealership's service department. The recent month's income statement for his department follows.
Oakwood Company produces maple bookcases to customer order
Comp Wiz sells computers. During May 2013, it sold 350 computers at a $ 1,200 average price each. The May 2013 fixed budget included sales of 365 computers at an average price of $ 1,100 each.
Should the product be marketed? Why? What is the expected value of perfect information about the success or failure of the product?
Compute the activity rates for each of the company's three activities.
Laguna Corporation has provided the following data concerning its overhead costs for the coming year:The Other activity cost pool does not have a measure of activity; it is used to accumulate costs of idle capacity and organization-sustaining cost..
The administrative expenses are 25% variable and 75% fixed. The company purchases its liners from a supplier at a cost of $125 per liner.
Allocate joint costs using the relative sales values at the split-off point, and calculate the profit per 100 pound box of sugar-coated peels and the profit per pint of juice. Round to the nearest dollar.
The following pertains to the Cereal Division of McKenzie Corporation.
USE SunRype and Welches which are provided for you as a Website Resource. Compare Sales and Net Income over the last 3 years. (Trend Analysis). Remember to compute trends in Dollars and Percentages.
Why are companies required to prepare a statement of cash flows? Why is the statement of cash flows divided into three sections? What does each section tell you about the operations of a company?
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