strategy they use respectively through analyzing their annual report especially the cost of goods sold and gross margin. From the income statement and balance sheet‚ the cost of goods sold in 2012 is $118‚224‚730 million for Samsung and $87‚846 million for Apple. The Gross profit percent is 37.02% and 43.9% correspondingly. Obviously‚ the sales of Samsung exceed Apple substantially but the gross margin percentage of Apple is higher than that of Samsung. These two groups of data reflect Apple Co. can
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What would an ABC system look like at Wilkerson? What are the revised product costs and margins under such a system? Assumptions: We are assuming that the SG&A costs have no direct effect on the costing for each product line. SG&A was kept the same‚ whether using the original costing method or ABC costing. Calculations for ABC Costing: Machine Expense: $336‚000/11‚200 = $30 per machine hour Setup Expense: $40‚000/160 = $250 per setup Engineering Expense: $100‚000/1‚250 = $80
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|AFM 131 Report |December 3 | | |2011 | |This is a report of the company named JayHsquared which contains decisions made |JayHsquared | |and the results from these decisions from 2003 to 2011
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8-33 a. Gross margin percentage for drug and nondrug sales is as follows: DRUGS NONDRUGS 2007 2006 2005 2004 40.6% 42.2% 42.1% 42.3% 32.0% 32.0% 31.9% 31.8% The explanation given by Adams is correct in part‚ but appears to be overstated. The gross margin percentage for nondrugs is approximately consistent. For drugs‚ the percent dropped significantly in the current year‚ far more than industry declines. The percent had been extremely stable before 2007. In dollars‚ the difference is approximately
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OVERVIEW This is an excellent short case to introduce the managerial accounting issues related to the "joint cost" problem. Classic microeconomics argues unequivocally that attempts to assign cost to individual products in a "joint" set constitute a complete waste of time--"just maximize the total revenue over the batch." Like the comparable adage to "price so that marginal cost equals marginal revenue‚" the economists’ advice about joint costing is certainly accurate‚ given the assumptions‚ but
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aggregate output. Aggregate output is labeled Gross Domestic Product (GDP): the total market value of all final goods and services produced in a given year. Three approaches of computing GDP. 1. The Expenditure Approach (Output Approach) Personal Consumption Expenditure (C)……………… xxxxx Gross Private Domestic Investment (Ig)………….……. xxxxx Government Spending (G)………………………….……… xxxxx Net Exports (Xn)………………………………………….…..…. xxxxx Gross Domestic Product ………………………………… xxxxxxx (C
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imperative that if the new strategy proves to be financially beneficial and is implemented‚ that the same level of guest service and customer experience be preserved. Though the marketing expense would increase by $9 per guest‚ thereby reducing gross profit per guest by $9‚ the increase in
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Case: McDonald’s The Hamburger Price Wars 1. How serious is McDonald’s U.S. situation? Why is the company having problems? McDonald’s U.S. situation is rather bad as the sales declined in the first three quarters of 2002 with strong competitive pressure and low consumer satisfaction. Looking at its financial performance in 2002 (Table A)‚ it can be observed that McDonald’s SG&A had increase disproportionately in Q3 which resulted in lower operating income. Even though McDonald prides its success
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of a typical customer in each of the four segments‚ in current dollar values? Compare these figures to the “Gross margin” figures in the original spreadsheet. What can you learn from this comparison? Solution 1 Following are the lifetime value of a typical customer in each of the four segments‚ in current dollar values. Segments / Segment description Customer lifetime value Gross margins Large accounts $78‚454 $63‚000 Large accounts‚ rebate $70‚769 $36‚000 Small accounts $10‚679 $10‚800 Small
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income statement for last month: Sales $1‚000‚000 Less: Variable Expenses $ 700‚000 Contribution Margin $ 300‚000 Less: Fixed Expenses $ 180‚000 Operating Income $ 120‚000 The company has no beginning or ending inventories. A total of 20‚000 units were produced and sold last month. What is the company’s margin of safety in dollars? $400 000 10 points Question 2 1. The following is Addison Corporation’s contribution
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