“ Polysar Ltd Case” Brief Introduction to Polysar Limited Polysar Limited is the Canada’s largest chemical company and the world’s largest producer of synthetic rubber and latex and a major producer of basic petrochemicals and fuel products. The organization is structured into three groups: petrochemicals, rubber and diversified products; the rubber group accounts for 46% of Polysar’s sales, whose main products are butyl and halobutyl, and whose principal customers are tire manufacturers
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transaction is recorded as a debit to Cost of Goods Sold and a credit to Finished Goods. 7) On a cost-volume-profit graph, the revenue line will be shown below the total expense line for any activity level below the break-even point. 8) The margin of safety in dollars equals the excess of actual sales over budgeted sales. 9) Unit variable cost is expected to remain unchanged as activity changes within the relevant range. MULTIPLE CHOICE. (3 points each) Circle the one alternative
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week = 8000 x $30 = $240,000 * Variable cost per week = $25 x 1,000 + $25 x 1,000 + $4 x 700 x 0.85 + $150 x 405 = $113,130 * Contribution margin per week = $240,000 - $113,130 = $126,870 * Depreciation per week = (14,405 x $1000)/(52 x 3) = $92,340 * Depreciation/contribution margin = 0.73. The depreciation is about 73% of the contribution margin per and the profit is about $34,530 per
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been reclassified as variable selling costs on page 33? A. The income statement shown on page 33 exclusively shows the contribution margin. This format is used for internal company analysis. Benetton has chosen to show it as a part of annual report. The variable costs (Distribution and Transport costs, Sales commission) are clubbed together. This format is called the contribution format. The income statement on page 50 shows the variable costs and fixed costs more clearly. It has broken down the
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Salem Telephone Co Case Study #2 Overview: Salem Telephone Company (STC) is a telephone company who is regulated by the state Public Service Commission. The state Public Service Commission encouraged public utilities under its jurisdiction to seek new sources of revenue and profits. This would reduce the need for rate increase that higher costs would otherwise bring. The company formed an agreement with the state Public Service Commission to create a subsidiary. Thus Salem Data Services (SDS)
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Calculations contribution margin per passenger =passenger fare $160 - variable cost per passenger $70 $90 Contribution margin per unit is the difference between the selling price per unit and the variable cost per unit. Breaking -even point in units (tickets sold) = Fixed costs $3,150,000 / Contribution margin per unit $90 35,000. Break-even point in dollars = Fixed costs $3,150,000 / Contribution margin ratio .5625 $5,600,000. Contribution margin ratio = unit contribution margin $90/ unit selling
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price 7.647058824 35.15794029 1.666666667 5.041420118 10.0733945 20.66666667 97.25165563 250 12 124.4935543 19.60007223 contribution margin 137500 749250 470000 703000 968000 179000 26250 -40000 24000 283000 3500000 contribution margin/unit 32.35294118 64.84205971 78.33333333 24.95857988 79.9266055 119.3333333 12.74834437 -50 3 135.5064457 501.001643 contribution margin ratio 3% 15% 9% 14% 19% 4% 1% -1% 0% 6% 70% Sales Mix WACM 45.73350186 Breakeven Point in units
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BRIDGESTONE BEHAVIORAL HEALTH CENTER: COST-VOLUME-PROFIT ANALYSIS FOR PLANNING AND CONTROL I. INTRODUCTION Bridgestone Behavioral Health Center, a medical center for comprehensive outpatient substance abuse treatment center positioned at the Midwest United States and has been operating since 1985. Some of the services offered by Bridgestone grouped generally are counselling, crisis intervention, detoxification and methadone maintenance. Under these services they offer patient assessment
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$121.90 per unit. According to the activity-based costing system, the product margin for product P23F is: A. $9,223.20 B. $7,853.60 C. $5,401.60 D. $22,950.00 4. Kraska Corporation has provided the following data from its activity-based costing system: Data concerning one of the company's products, Product O11W, appear below: According to the activity-based costing system, the product margin for product O11W is: A. $4,651.80 B. $1,688.10 C. $17,934.00 D. $3,956.10
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Lecture Unit 3 In the last unit we were introduced to the contribution income statement. I noted the needs of internal management in planning, controlling and decision making are met with this statement format. Breaking costs into behaviors and not functions allows management to determine how costs will rise and fall with different levels of activity; this is a very important concept. A company can have the best products, best workers, and best machinery, but imprecise pricing or cost
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