Reference no: EM13150198
Golub Company manufactures three products, A, B, and C. It has three marketing managers, one for each product. During the first year of operations, the company allocated its $30,000 of actual advertising expense to products on the basis of the relative net sales of each product. In the second year, the advertising budget was increased to $60,000. Half was spent on general institutional advertising in the belief the company image would be enhanced. Of the other half, $10,000 was spent on Product A, $15,000 on Product B, and $5,000 on Product C. For purposes of income measurement, all advertising expenses continued to be allocated on the basis of sales. Certain data in the second year were as follows:
Total Product A Product B Product C
Net sales $460,000 $207,000 $128,000 $124,200
Advertising Expense 60,000 27,000 16,800 16,200
Income 55,000 25,500 12,000 17,500
When the marketing manager of Product A received these figures, he complained that his department was charged with an unfair portion of advertising, and that he should be held responsible only for the actual amount spent to advertise Product A.
Required:
a. Comment on the sales manager's complaint.
b. In Golub's responsibility accounting system, how much advertising expense should be charged to the department responsible for marketing Product A?
|
Determining tax consequences and alternatives
: How much gain is recognized by Nathan? What is the character of the gain? What are the tax consequences and alternatives to Michelle? Is there a difference if Ben sold his entire interest?
|
|
Determine if the new column should be purchased
: If the interest rate is 8%, determine if the new column should be purchased. Solve by both present worth and annual cash flow analysis methods.
|
|
What is the freezing point of a solution
: What is the freezing point (°C) of a solution prepared by dissolving 11.3 g ofCa(NO3)2 (formula weight= 164 g/mol) in 115 g of water? Assume that i=3.00 for Ca(NO3)2 and the molal freezing point depression constant for water is1.86°C/m.
|
|
Which investment should be chosen
: The net present worth of each investment for a MARR = 12%. The equivalent uniform annual profit of each investment for a MARR = 12%. Which investment should be chosen?
|
|
Responsibility accounting system
: In Golub's responsibility accounting system, how much advertising expense should be charged to the department responsible for marketing Product A?
|
|
Dells business model for employees
: What are some of the intangible benefits to taking this approach in Dell's business model for employees?
|
|
Draw a plasmid map
: A plasmid digest with BamHI produced 2 kb and 4 kb fragments. Digest of a plasmid with HindIII produced 6 kb fragment. Double digest with both enzymes produced 1 kb, 2 kb and 3 kb fragments. Draw a plasmid map.
|
|
The firm should produce as long as the market price
: Should the firm produce? The firm should produce as long as the market price >= Average Variable Cost (AVC).
|
|
Which option should she pursue if the probability of being
: Which option should she pursue if the probability of being laid off and unable to find a new job is estimated as 0.6? Show your calculations and explain your reasoning.
|