Estimate of the current contribution margins

Assignment Help Managerial Accounting
Reference no: EM13278806

QUESTIONS

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

Reference no: EM13278806

How a major corporation conducts its affairs

Human rights groups, environmental activists, and other interest groups concerned with unethical business practices have often conducted publicity campaigns against various

Explain why starting a large number of wafers in production

Explain why starting a large number of wafers into production will boost profit even though the chips that ultimately result from the wafers are ones that have not been sold

How do barriers to entry impact the level of competition

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

What do most federal entities receive on their audit opinion

What do most federal (and non-federal) entities receive on their audit opinions? Are there any issues in the government-wide statements? If there are issues, list at least one

Analyzing financial statements aside from ratio analysis

Address other methods of analyzing financial statements aside from ratio analysis and explain your analysis of the firm, and make recommendations for improvement.

Critically analyse the relative importance of the management

Identify and analyse the factors which influence capital budgeting decisions that required efficient investment decisions over competing concerns - Critically analyse the re

How do determine the firms market value

How do I determine the firms market value with this information? Debt = $7,000, Common stock ($1 par) = 458 and Retained earnings = $17,000. The firms bonds are currentl

A predetermined overhead rate

Bread, Inc. uses a normal costing system with a predetermined overhead rate based on machine hours. At the beginning of the year, the company estimated manufacturing overhead

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd