whole company in both cases: external purchasing vs. internal purchasing (we have to take with contributions because fixed costs are irrelevant). External purchasing scenario: | ECD | Heidelberg | ISD | Zumwald | Turnover | - | - | 340,000 € | 340,000 € | Variable Costs | - | - | 26,300 €72,000 €100,500 € | 26,300 €72,000 €100,500 € | Fixed Costs | - | - | 117,700 € | 117,700 € | Contribution | - | - | 141,200 € | 141,200 € | Internal purchasing scenario: | ECD | Heidelberg |
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The Financial District Branch James McGaran was manager of the most important of the 31 branches in the Los Angeles area. Located in Los Angeles’s financial district, James’s branch had a staff of 15 people, revenues of $6 million, and $4.3 million in profit margin. The customer base was very diverse. Individual customers ranged from people who worked in the financial district with sophisticated retail banking needs to less informed individuals banking for convenience. Business customers were sophisticated
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12775 days, 11497.5 days at 90% capacity and 9581.25 days at 75% capacity. The hospital’s fixed costs amounted to $10,100 per month and the variable costs were $179.45 per day. The first step in the preparation of the budget was finding the contribution margin (CM) for the hospital under the assumptions that 10 beds are at 50% discount and under every capacity, and that 10 beds are at full discount under every capacity. The CM of 100% capacity was higher than those at 90% and 75% capacity. Not
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relevant, there is a contribution of €90,000 (140,000-50,000) to Heidelberg. For EDC, the variable costs for EDC are €9,000 in the €21,600 quote to ISD. So it will have €12,600 (21600-9000) profits for the company. The total contribution to Zumwald is €102,600 (12600+90000). If ISD buy the system from Display Technologies atherosclerosis than Heidelberg, ISD will earn €39,500 more than buy the systems from Heidelberg. However, €39,500 is much smaller than the total contribution to Zumwald of €102,600
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Question 1 In this case the managerial accountant is faced with an ethical dilemma. It involves integrity and objectivity. The managerial accountant cannot request an immediate meeting with the Board of Directors. The appropriate way to deal with this problem is presenting the situation to the next higher managerial level firstly. According to CIMA code of ethics for professional accountants, a distinguish mark of the accountancy profession is its acceptance of the responsibility to act in
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Question1 Monthly production costs in Pesavento Company for two levels of production are as follows. | |Cost |3,000 units |6,000 units | | |Indirect labor |$10,000 | |$20,000 | | | |Supervisory salaries |5,000 | |5,000 | | | |Maintenance |4,000 | |7,000 | |
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7 – 2 Five Star Tools Managerial Accounting BUS 5431 Fall 2015 December 6, 2015 Executive Summary Five Star Tools is a family controlled manufacturing organization that makes chisels and saws utilized by diamond setters. They deliver the apparatuses using a 3 stage process. In the previous two years the organization has encountered critical development and now and again has not possessed the capacity to meet request due dates. Administration has acknowledged that they have a bottleneck
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and quantity move in the same direction. 1b. TR= 50*10,000 = 500,000 TC= 15*10,000 = 150,000 1c.TR= 55 x 10300= 566500 CM= 55-35= 20 TC= 20 x 10300= 206,000 Yes we would recommend the increase in price because contribution margin increased by $56,000 1d. % Profit B/E (50-55)/$15+(50-55) =.5 or 50% 1e. Quantity demanded would have to increase by at least 50% for the price change to be profitable. 1f. The two metrics offer different views. The elasticity
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leverage at both 20,000 and 25,000 bags e. what is the degree of combined leverage at both sales levels. A. What is the break even point in bags. The break even point in bags will equal the fixed cost divided by the unit contribution margin, which the unit contribution margin will equal the selling price per unit subtracted by the variable cost per unit. Therefore my equation is $10-(50*0.10) will equal 10-5 which equal $5. So, the break even point will equal the operation fixed cost which is
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Selling price B=$80 Less Variable Costs= $30 Less Variable Costs= $44 Contribution margin= 60 Contribution Margin=$36 Labor Hours A= 6 Labor Hours b=3 Contribution Margin Per Hour A= $10 Contribution Margin Hours Per B=$12 Contribution Margin Given Contribution Margin Given 350 Hours= $3500 350 Hours= $4200
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