Jump to Navigation Frame Your location: Assessments › View All Submissions › View Attempt View Attempt 1 of 2 Title: | Exam 2 (Chapters 10-18) | Started: | July 7‚ 2011 12:16 AM | Submitted: | July 7‚ 2011 2:11 AM | Time spent: | 01:54:47 | Total score: | 94/200 = 47% Total score adjusted by 0.0 Maximum possible score: 200 | 1. | Chapter 10 #265 | | Use this information for questions that refer to the World Tennis Ball (WTB) Company case. World Tennis Ball Co. (WTB) makes
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retail outlets. Trucks are used to transport the goods from two plants to the warehouses‚ and then from the warehouses to the three retail outlets. Using the units of full truckloads‚ the following table shows each plant’s monthly output‚ its shipping cost per truckload sent to each warehouses‚ and the
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on change of RELEVANT items ONLY. The company’s calculation is WRONG‚ as it takes into concern of irrelevant fixed cost. By double-counting depreciation‚ other Mfg. overheads‚ SG&A in Sunday’s cost; it distorts the P&L sheet. To correctly show cost structure for decision making‚ there are two different approaches‚ yet each should reach same conclusion. Approach 1: Differential Cost Approach As suggested in case‚ by producing 4 unites on Sunday‚ total depreciation‚ total Mfg. overhead and SG&A
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1: Score 0/4 Your response Exercise 5-1 Fixed and Variable Cost Behavior [LO1] Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1‚200 and the variable cost per cup of coffee served is $0.22. Requirement 1: Fill in the following table with your estimates of total costs and cost per cup of coffee at the indicated levels of activity for a coffee stand. (Round average cost per cup of coffee to 3 decimal places. Omit
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Question4: What closing time should Citywide Spirits Shoppe choose to maximize profits? Through the Attachment: (Evening time) Contribution Margin = average purchase revenue-average purchase cost = $30.52-$23.25 = $7.27 per customer per purchase Average numbers of customer: (Attachment 2) close time averge customers Time Total customer 10pm 10.18 10pm~11pm 12 11pm 10.16 10pm~12pm 21 12pm 10.08 10pm~1am 27 1am 9.71 10pm~2am 32 2am 9.4 10pm~3am 36 3am 9.06 10pm~4am
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the relevant cost is the cargo cost only. Therefore‚ profit contribution of carrying I ton of tapioca from Balik and Singapore: Expected revenue $5.10 Less freight cost (0.25+0.56) 0.81 Profit Contibution 4.29 From Singapore to Balik: Expected Revenue $2.70 Less freight cost (0.16+0.32+0
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large company. Actual costs Static Incurred budget Activity level (in units) 800 750 Variable costs: Indirect materials $6‚850 $6‚600 Electricity $1‚312 $1‚275 Fixed costs: Administration $3‚570
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Analysis Understand how cost behavior and cost-volume-profit analysis are used by managers. 2 Questions Addressed by CVP Analysis How much must I sell to earn my desired income? How will income be affected if I reduce selling prices to increase sales volume? What will happen to profitability if I expand capacity? 3 Cost-Profit-Volume Analysis What is cost-volume-profit analysis? It is the study of the effects of output volume on revenue (sales)‚ expenses (costs)‚ and net income (net profit)
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Variable costs are those costs that increase as the output the restaurant increases. As example‚ assume for the Teen Burger Direct Materials cost $1.50 per burger. A day with one thousand burgers sold would cost of $1500 dollars. In comparison‚ a day with two thousand burgers sold would cost $3000 dollars. While the cost per Teen Burger remains constant the total cost per day varies with the output each given day. Electricity costs would increase in the same fashion as each time a burger is cooked
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inventory. Costs involved in production are: Direct material $5 Direct labor $4 Variable manufacturing overhead $3 Total variable manufacturing costs per unit $12 Fixed manufacturing overhead cost per year $180‚000 In addition‚ the company has fixed selling and administrative costs of $160‚000 per year. Exercise 5-11. During the year‚ Summit produces 50‚000 snow shovels and sells 45‚000 snow shovels. What is the value of ending inventory using full costing? Fixed manufacturing
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