Horngren‚ C.T.‚ Datar‚ S.M. and Foster‚ G. (2003) Cost Accounting - A Managerial Emphasis‚ Pearson Education‚ Inc.‚ New Jersey‚ Eleventh Edition CHAPTER 11 DECISION MAKING AND RELEVANT INFORMATION 11-1 The five steps in the decision process outlined in Exhibit 11-1 of the text are: 1. 2. 3. 4. 5. Obtain information Make predictions about future costs Choose an alternative Implement the decision Evaluate performance to provide feedback 11-2 Relevant costs are expected future costs that differ
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00 | | Sub-total cost | | Compensation cost | | $85.35 | | Total variable cost | $352.60 | 7. For each distribution strategy‚ calculate the unit contribution and contribution margin ratio for each of the two product lines (necklaces and earrings). What is the weighted average contribution margin for an order at a trade show and an order with a sales rep? For trade show distribution strategy‚ the unit contribution and contribution ratio for each of the product lines can be determined
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of laser printers per day‚ the older plant can produce 200 units per day. Variable cost per unit in Ogden is $110‚00; in Sandy variable cost is $15 higher. Selling price for the printer is $320‚00. Based on the data mentioned above the contribution margin per unit of normal production is $210‚00 in Ogden and $195‚00 in Sandy. Fixed costs per unit based on normal capacity are $70‚00 and $39‚00; total fixed cost is $4 200 000 for the Ogden plant and $1 872 000 for Sandy. In the circumstance when Ogden
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Financial analysis Assignment Title-Analysis of the annual report of HUI Travel Plc during the years 2009 &2008 INTRODUCTION The main aim of this assignment is to analyse the Annual report and Financial accounts of TUI Travel PLC and to compare the companies overall performance with its competitors (Thomas Cook Plc) of the years 2009and 2008 using the process called Ratio Analysis. Ratio analysis acts as powerful tool in analysing and interpreting the financial statements
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life cycles. • Many competitors and often leads to low profit margin. Innovative Products • Many companies introduce innovations in fashion or technology to give customer an additional reason to buy their offerings. • The products are fashion apparel‚ personal computers. • Achieve higher profit margins‚ unpredictable demand and short life cycles. • Innovative products require a fundamentally different supply chain than stable‚ low-margin functional. Is Your Product Functional or Innovative Functional
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used? Will trends in these ratios always move in the same direction? All the three bases are used to find the return earned with respective to sales as well as investment made. When the profit is compared with sales‚ it is called as the net profit margin. When the profit is compared with assets‚ it is called as return earned on total investment and when profit is compared with stockholders’ equity‚ it is called as return on equity. All these are profitability ratios and help to analyze the profitability
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1. Add the following columns: 2. Part 1 a. Annual Sales b. Annual COGS c. Annual Gross Profit d. Average Inventory Costs e. Gross Margin Ratio f. Markup g. Inventory Turnover h. Days in Inventory 3. Part 2 a. Gross Margin per Unit b. Percent of Sales 4. Provide the Average‚ High & Low for each applicable column 5. Add conditional formatting to each applicable column to highlight the high
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Executive Summary Five Star Tools is a family owned manufacturing company that manufactures chisels and saws used by jewelers. They produce the tools utilizing a 3 step process. In the past two years the company has experienced significant growth and at times has not been able to meet order deadlines. Management has identified that they have a bottle neck in the coating and sharpening process. Overview The president of Five Star Tools‚ Maxfield Turner decided to meet with the vice president
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hour is $28.70/hr Question 3 - Price per unit is $400/hr internal and $800/hr external - Intracompany contribution margin: $371.30/hr - Commercial contribution margin: $771.30/hr Assume STC will fully utilize their allowable hours. The next allowable hour will be a commercial hour; therefore we consider the contribution margin to be the commercial contribution margin of $771.30/hr. Question 4 Break-even occurs when revenue equals costs so we used the following equation: Revenue
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products through big box retail outlets but instead sells directly to consumers and enterprises‚ keeping their already thin profit margin to themselves. Weaknesses of Dell: 1 commodity products. The large stream of Dell’s revenues comes from computer‚ especially laptop‚ sales‚ which is a commoditized product. Computer hardware products are sold with a very low profit margin. 2 poor customer services. Once praised‚ Dell’s customer services deteriorated due to outsourcing its call centers offshore. Dell
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