What would be the effect on the company

Assignment Help Managerial Accounting
Reference no: EM132566704

The company is thinking os special producing one of its CD. To do so would increase variable costs for all CDs by an average of $0.70 per unit. The company also estimates that this change could increase the overall number of CDs sold by 10%, and the average sales price would increase $0.20 per unit. The company currently sells 491,740 CDs at an average selling price of $26.50. The manufacturing costs are variable: $6,863,512 and fixed: $2,050,140. Selling and administrative costs are variable: $2,651,657 Variable and fixed: $794,950

Question (1) The company begins a special producing its CDs, how would that affect the company.

Question (2) Suppose the average sales price per CD unit did not increase, when the company began its special producing the CDs, what would be the effect on the company

Reference no: EM132566704

Questions Cloud

Misconceptions about marketing for nonprofits : What are some common misconceptions about marketing for nonprofits?
What are likely effects of a policy in which a company fails : What are the likely effects of a policy in which a company fails to adjust for differences in risk when estimating the cost of capital for their various project
What is the company retained earnings balance at the end : Stock dividends declared and distributed during the year is $7,600. What is the company's retained earnings balance at the end of the year
Develop marketing plan : Develop a marketing plan including a new program brochure, article for a newspaper or online social media, or any other form of advertising to get the word
What would be the effect on the company : Suppose the average sales price per CD unit did not increase, when the company began its special producing the CDs, what would be the effect on the company
How was humbert humbert : In detail how was Humbert Humbert from "Lolita" a monster of vanity?
Integrated response systems : Discuss security integrated response systems that can be utilized in transportation security.
Why is this issue important : Why is this issue important? What are the consequences for not resolving this issue? Who can you interview or where can
Advise Harry with reasons for the advice given : You are an accountant. Harry consults you for advice on whether he can be personally liable, Advise Harry with reasons for the advice given

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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