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 Why does the manufacturing industry use job order cost system? A Job order Why do some professional firms use job order cost system? Give 2 professional firms to use job order cost system for example. A job order is a cost accounting method that focuses in quantity of product known as a job or lot. The costs of direct materials, direct labor, and manufacturing overhead applicable to each job are compiled to arrive at average unit cost, (p.778, Williams, 2012). Characteristics | Job Order
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THE BOOTS AND CO LTD PART 2 CLOSING STOCK VALUATION Product 1: THETA 5 Month Receipts Cost Issue FIFO LIFO Jan 300 4.5 1,350 1,350 Feb 200 4.5 150 1,575 1,575 Mar 400 4.5 3,375 3,375 Apr 4.5 250 2,250 2,250 May 400 4.5 100 3,600 3,600 Jun 300 5 5,100 5,100 Jul 150 4,425 4,350 Aug 400 5 6,425 6,350 Sep 300 5 7,925 7,850 Oct 400 6,125 5,850 Nov 400 6 8,525 8,250 Dec 6 250 7,400 6,750 Total 2,700
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Spiral 1. What is causing the fluctuating margins for the cartridges? How would the overhead rate be affected if the R&D department requested an additional 10,000 units for testing? • The fluctuating margins for the cartridges results from the sales of the fully depreciated workstation • Resulted primarily from workstation sales; cartridge revenues were still pretty small o Prototypes that had been fully depreciated already → well above-average gross margins • Reader/loader units from Japan that
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hours Variable costs per revenue hour Furthermore, by distinguish the variable costs and fixed costs, we can construct the contribution margin income statement for SDS at March level, assuming 205 hours for intracompany usage (Q3): Revenues Intracompany 82,000 Commercial 110,400 Total Revenues 192,400 Variable expenses (power + hourly personnel) 9,844 Contribution margin 182,556 Fixed expenses Rent 8,000 Custodial services 1,240 Computer leases 95,000 Maintenance 5,400 Depreciation 26,180 Salaried
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Perceptual Map Situation Analysis The Situation Analysis will help your company understand current market conditions and how the industry will evolve over the next eight years. The analysis can be done as a group or you can assign parts to individuals and then report back to the rest of the company. An online version of the Situation Analysis is available in the Getting Started area. (customers want better performing products) and for size is -0.7 (customers want smaller products). At the
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potential 5 segments will actually buy the version introduced by CSC. In the second part of this document, we consider the multi-version case. a) Single-Version Case: Decisions Rule: Choose the version which gives the highest contribution margin Options: (i) “Student” version; (ii) “Commercial” version; (iii) “Industrial” version Optimization Procedure (Managerial Logic): The managerial logic involved in this case can be represented by the following decision tree: [pic]
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Case Differential pricing of pharmaceuticals: the HIV / AIDS Crisis 1) Is the monopoly on patented pharmaceuticals warranted? What barrier to entry prevents the re-importation into the United States of pharmaceuticals sold at lower prices abroad (say, in Canada)? The monopoly on patented pharmaceuticals is an improper term, and represents only a limited warranty. * First, it is limited in time. The company needs to recover its R&D investment and make a fair profit during the period
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variable costs will change with changes in production volume Points Received: 6 of 6 Comments: 5. Question : (TCO B) The break-even point is Student Answer: total costs divided by variable costs per unit. contribution margin per unit divided by revenue per unit.
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With every company there are great opportunities and great moments. Understanding company core business is paramount to the success of any institution. Knowing when to strike has everything to do with knowing your customer base and your ability to analyze future growth in the industry. Knowing and understanding customer needs is at the center of every successful business, whether it sells directly to individuals or other businesses. Once you have this knowledge, you can use it to persuade potential
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