giving advice to customers about the best toys for a particular age group, which requires having more customer service representatives in the store. During the month long Christmas buying season, it makes half of its $500,000 yearly sales. Its contribution margin on average is 40% and its fixed costs for the year are about $150,000. The owner believes that she could make even higher sales, if she had more customer service representatives on the floor during the peak season. She plans on hiring four
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| SHABBIR CORPORATION CONTRIBUTION INCOME STATEMENT FOR THE MONTH OF NOVEMBER 2011 TOTAL PER UNIT SALES (250 CALCULATORS) 500000 200 LESS: Variable expenses (25000) 100 Contribution margin 25000
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1. | Question : | (TCO A) Wages paid to an assembly line worker in a factory are a | | | Student Answer: | | Prime Cost YES.....Conversion Cost NO. | | | | Prime Cost YES.....Conversion Cost YES. | | | | Prime Cost NO....Conversion Cost NO. | | | | Prime Cost NO.....Conversion Cost YES. | | Instructor Explanation: | Chapter 2 | | | | Points Received: | 6 of 6 | | Comments: | | | | 2. | Question : | (TCO A) A cost incurred in the past
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ACC 560 WK 5 Quiz 5 - All Possible Questions To Purchase Click Link Below: http://strtutorials.com/ACC-560-WK-5-Quiz-5-All-Possible-Questions-021.htm ACC 560 WK 5 Quiz 5 - All Possible Questions TRUE-FALSE STATEMENTS 1. An activity index identifies the activity that has a causal relationship with a particular cost. 2. A variable cost remains constant per unit at various levels of activity. 3. A fixed cost remains constant in total and on a per unit basis
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EVEN POINT: | 500 | | Therefore, 500 windows would have to be sold to make the break-even point. C.) Number of windows to be tinted to earn an income of $14,000: FORMULA: | FORMULA EXPLAINED: | 16x-8000=1400016x=22000x= 1375 | (contribution margin times X number of units, less $8000 fixed costs = $14,000 income) | | Checking my numbers: | | $8,000 | fixed | | $26,125 | $19 each variable * 1375 units) | | $34,125 | total costs | | $48,125 | net sales for 1375 units
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Harrington Collections put forth their new active-wear line? After three years of unimpressive sales and low margins, Harrington Collection must evaluate launching a new active-wear product line in order to increase profits and maintain industry leadership. III. Alternatives: A: “Better” pricing with the same channel. 1. Break-Even = 269,255 units ($25,579,186.45). 2. Profit Margin = 18 percent. 3. Brand
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Lille Tissages, S. A. Background Lille Tissages, S.A. was one of the largest companies in the textile industry located in Lille, France. Its 2003 sales had exceeded FF96 million out of which 2.6% was for item 345. Item 345 was one of the most successful products. In its prime years from 1998 – 2001 they had a market share for Item 345 of 35%. In 2002 the market share dropped to 30%, and then continued to drop in 2003 to 20%. See exhibit 1. This is believed to have been caused by Lille Tissages
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902 (F) 153,522 Advertising Ex. 28,412 764 (F) 27,708 Trans. Out 3.967,962 98,349 (F) 3,869,612 Contribution Margin 1,279,489 31,716 (U) 1,247,773 Fixed Manufacture Ex. Depreciation 150,000 -------- --------- Total Fixed Man/Exp. 150,000
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Competition Bikes (CB) is making CarbonLite and Titanium bikes. To streamline cost there need to be an investigation into which practice is most efficient and cost effective for the CB. Competition Bikes is using a traditional based costing (TBC). There needs to be a comparison between the current use of TBC and activity based costing (ABC) to decide which is most beneficial to the company. Also, the breakeven point to cost volume profit needs to be evaluated. There is a potential for a $50,000 increase
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1. Question: (TCO A) Wages paid to a timekeeper in a factory are a: Prime Cost YES.....Conversion Cost NO Prime Cost YES.....Conversion Cost YES Prime Cost NO....Conversion Cost NO Prime Cost NO.....Conversion Cost YES CORRECT 2. Question: (TCO A) A cost incurred in the past that is not relevant to any current decision is classified as a(n): period cost. opportunity cost. sunk cost
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