Estimate of the current contribution margins
Course:- Managerial Accounting
Reference No.:- EM13278806

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Managerial Accounting


1. Use the information in Exhibit 2 to calculate the product costs per unit for valves, pumps and flow controllers that are reported in Exhibit I. Show your calculations.

2. What is your estimate of the current "contribution margins" for the three products. Show your calculations and explain them.

3. Use the information in Exhibit 2 to calculate the revised product costs mentioned by Mary Ford on page 3.

4. Use the information in Exhibits 2 and 3 to calculate product costs for valves, pumps, and flow controllers under an "ABC" approach (Activity Based Costing).

5. If, in the following month, quantities produced and sold, activities, and costs were all at standard, how much higher or lower would the reported net income be under the ABC system than under the present system? Why?

6. Prepare a table which compares product profitability across the three products under the three product costing systems. Which system do you favor? Why?

7. Use the information in the ABC analysis to re¬evaluate the "HT" purchasing policy regarding flow controllers. Show your analysis. What is you conclusion?

8. What recommendations do you have for management? Why? Be specific. Support your recommendations with explicit analysis.

Attachment:- Bronze_Machining.pdf

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Managerial Accounting) Materials
How much would the projected cash inflow for the end of Year 5 have to increase for the project to be acceptable? How much would the projected cash inflow for the end of Y
Analyse the annual reports of your chosen companies in light of the standard requirements -  Compare and contrast the two annual reports, identify the differences in disclosu
Describe the current cost system including its strengths and weaknesses and calculate the unit cost and gross margin percentage for the regular briefcase and the executive br
The Ski Pro Corporation, which produces and sells to wholesalers a highly successful line of water skis, has decided to diversify to stabilize sales throughout the year. The
Prepare a General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance for the year ended June 30, 2012 and prepare a General Fund Balance Sheet as of June 30
Becker Financial recently declared a 2-for-1 stock split. Prior to the split, the stock sold for $80 per share. If the firm's total market value is unchanged by the split, wha
MT445 - Managerial Economics discussion question - Why does a Starbucks coffeehouse face a downward-sloping demand curve while a dairy farmer has a horizontal demand curve? W
Calculate the contribution each of the three alternatives will make to Grumbles Industries' pre-tax profits and what is the lowest price Grumbles Industries should accept?