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World view is considering production of a lighted world globe that the company would price at a markup of 25 percent above full cost. Management estimates that the variable cost of the globe will be $60 per unit and fixed costs per year will be $240,000. Required:
A) Assuming sales of 1,200 units, what is the full cost of globe, and what is the price with a 25 percent markup? Price is 325
B) Assume that the quantity demanded at the price calculated in part a is only 600 units. What are the full costs of the globe, and what is the price with a 25 percent markup?
Is the company likely to sell 600 units at the price calculated in part b?
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Compute the labor price and quantity variances and find the total labor variance.
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Record the journal entries related to this transaction using the net method of recording purchases and Which method do you prefer? Why?
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There was no starting inventory. If the company uses the FIFO periodic inventory method, what would be the cost of the ending inventory?
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As sales manager, Terry Dewitt was given the following static budget report for selling expenses in the Clothing Department of Garber Company for the month of October.
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