Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Gloom Co budgeted to make and sell 10,000 units of its product in 20X1. The selling price is $10 per unit and the variable cost $4 per unit. Fixed production costs were budgeted at $50,000 for the year. The company uses absorption costing and budgeted an absorption rate of $5 per unit. During 20X1, it became apparent that sales demand would only be 8,000 units. The management, concerned about the apparent effect of the low volume of sales on profits, decided to increase production for the year to 15,000 units.
Actual fixed costs were still expected to be $50,000 in spite of the significant increase in production volume.
Required
Calculate the profit at an actual sales volume of 8,000 units, using the following methods.
(a) Absorption costing
(b) Marginal costing
Explain the difference in profits calculated.
the company is considering the acquisition of equipment that would radically change its manufacturing process. the
Describe the entity's attitude toward systems security and explain its strategies for dealing with systems security issues
dean makes a pledge of 30000 to a local college. the college is willing to accept either cash or marketable securities
Consider the alternative to trashing is choosing the more profitable of the two alternatives (that the new employee looked at and did not like). Find effect will the trashing option (that the new employee wants) have on net income
alternative methods of joint-cost allocation product-mix decisions. the southern oil company buys crude vegetable oil.
How do companies with this type of incentive plan keep division managers from playing games with the accounting numbers?
Draw a graph of the firm's raw material cost, showing the total cost at the following production levels: 50,000 kilograms, 100,000 kilograms, and 150,000 kilograms.
Ethical Dilemma What's an expense?
Jim Abbott purchased a $60,000 RV with a 40 percent markup on selling price. (a) What was the amount of the dealer's markup? (b) What was the dealer's original cost?
What is the annual breakeven point in units sold and revenues - Break-even point in units = Fixed cost/(Selling price per unit
Meyer Co. forecasts merchandise purchases of $ 15,800 in January, $ 18,600 in February, and $ 20,200 in March; 40% of purchases are paid in the month of purchase and 60% are paid in the following month.
Calculate the estimated break-even point in annual unit sales of the new product if Creative Ideas Company uses the. Capital-intensive manufacturing method.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd