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The following data are from the accounting records of Fremont Products for year 2:
Units produced and sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,500Total revenues and costs Sales revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $132,000Direct materials costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,000Direct labor costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000Variable manufacturing overhead . . . . . . . . . . . . . . . . . . . 8,500Fixed manufacturing overhead . . . . . . . . . . . . . . . . . . . . . 22,000Variable marketing and administrative costs . . . . . . . . . . . 6,800Fixed marketing and administrative costs . . . . . . . . . . . . . 16,000
Requirement: Prepare:
a. A gross margin income statement.
b. A contribution margin income statement.
What is Pareto efficiency? Why do economists use this criterion for comparing alternative economic systems?
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At the beginning of January, Fashions' Manufactured Company had a $320 balance in its Work in Process inventory Account. At the end of January, Fashions' Work in Process Inventory account had a balance of $970. During January, Fashions' made the f..
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Determine the breakeven point in units and dollars. Also, determine the number of units and dollars that need to be sold to make a target profit of $5,000 a month.
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How is it possible that a company can be profitable and yet find it necessary to completely liquidate its operations and cease to exist?
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Mateo Company's average cost per unit is $1.425 at the 16,000-unit level of activity and $1.38 at the 20,000-unit level of activity.Note: you need to calculate a total cost.
During the period, actual sales totaled 58,000 units. Prepare a variance report to show the difference between the master budget and the flexible budget.
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