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The Doral Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.50 per unit. Fixed costs are $900,000 per year. Variable costs are $0.30 per unit.
a) What is the present operating income for a year?
b) What is the present breakeven point in revenues?
Describe how a job analysis increases productivity, aids in job description creation, and guides employee team formation.
GHI Company makes light-weight canoes for campers. The president, George Ingalls, enlists your help in predicting the effects of some changes he is contemplating. He gives you the following information:
Each month, Haddon Company has $275,000 total manufacturing costs (20% fixed) and $125,000 distribution and marketing costs (36% fixed). Haddon's monthly sales are $500,000.
Funding budget shortfalls As part of your personal budgeting process, you have determined that in each of the next 5 years you will have budget shortfalls.
Find out the value for the manager in conducting a cost-volume-profit analysis.
Give five disadvantages to using an activity-based costing system: Based on these answers, why would a company who only makes a few products not want to use such a system?
Compute the cost per broadcast hour during July and September for each of these cost items. What will be the cost per broadcast hour in December for each of the cost items?
Discuss the pros and cons of awarding managerial bonuses based on budgeted cost targets. Specifically, what are some ways that the manager could ensure him or herself a bonus but skew your financial data?
Jackson Construction Company uses a job order costing system. In May 2008, Jackson made a $1,650,000 bid to build a pedestrian overpass over the beach highway in Gulfport, Mississippi.
Northeast Logging Co. of $120,000. The seller agreed to allow a 5 percent discount because Northeast paid cash. Determine the amount to be capatilized in an asset account for the purchase of the saw.
Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.
How do fixed costs create operating leverage? How does operating leverage impact the overall risk level of the company? What is the impact on earnings?
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