net income. c. contribution gross profit. d. controllable margin. e. none of the above 3. Pentecost Corporation desires to earn target net income of $40‚000. If the selling price per unit is $30‚ unit variable cost is $24‚ and total fixed costs are $160‚000‚ the number of units that the company must sell to earn its target net income is a. 13‚333. b. 33‚333. c. 20‚000. d. 26‚667. e. none of the above
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more accurate costs in their decisions. 2-4 Factors affecting the classification of a cost as direct or indirect include • the materiality of the cost in question‚ • available information-gathering technology‚ • design of operations 2-5 A variable cost changes in total in proportion to changes in the related level of total activity or volume. An example is a sales commission that is a percentage of each sales revenue dollar. A fixed cost remains unchanged in total for a given time period
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Ratio‚ Break Even Point‚ variable cost‚ fixed cost‚ etc it helps to take major production decisions relating to volume of production and sales‚ and profitability of such levels of sales or production. Step 1: Get acquainted with contribution margin calculation Contribution margin is the amount of money generated by selling a product over its variable cost of production. Therefore‚ mathematically it can be said that the revenue earned by a product minus its variable cost gives the contribution
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Question 1 of 25 | 1.0/ 1.0 Points | Numerical variables can be subdivided into which two types? | | A. Cross-sectional and discrete | | | | B. Diverse and categorical | | | | C. Nominal and progressive | | | | D. Discrete and continuous | | Answer Key: D | Part 2 of 9 - | 2.0/ 2.0 Points | Question 2 of 25 | 1.0/ 1.0 Points | A jar contains four white marbles‚ five red marbles‚ and six black marbles. If a marble is selected at random‚ find the probability that
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Chapter 6 Lecture Notes Variable Costing and Segment Reporting: Tools for Management JUST ONE THING - the only thing that is different is the cost classification of FMOH FMOH | |Absorption costing (full cost) | | |Variable costing | | | Sales |Product cost (COGS) | Sales |Product cost
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Q-1 Selected financial information about Vijay merchant company is given below: Particulars | 2010 (Rs.) | 2009 (Rs.) | Sales | 69‚000 | 43‚000 | Cost of Goods Sold | 57‚000 | 32‚500 | Debtors | 7‚200 | 3‚000 | Inventories | 11‚400 | 5‚500 | Cash | 1‚500 | 800 | Other Current Assets | 4‚000 | 2‚700 | Current Liabilities | 16‚000 | 11‚000 | Compute the current ratio‚ quick ratio‚ and average debt collection period and inventory turnover for 2009 and 2010- State whether there is
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Definition and explanation of mixed or semi variable cost: A mixed cost is one that contains both variable and fixed cost elements. Mixed cost is also known as semi variable cost. Examples of mixed costs include electricity and telephone bills. A portion of these expenses are usually consists line rent. Line rent normally is fixed for each month. Variable portion consists units consumed or calls made. The relationship between mixed cost and level of activity can be expressed by the following equation
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week in revenue (fig.3) was hurting profitability even further. The answer lies in the other half of operations‚ known as costs. Variable costs are expenses that are directly associated with the sale of a good. When variable costs are subtracted from sales what is left is known as the contribution margin which gives an idea of how profitable your sales are. CRU’s variable
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MKT 2375 Chapter 2 Problem 1 a. CD Contribution Profit Selling Price to CD Distributor Less: Variable Cost $9.00 $1.25 $0.35 $1.00 $2.60 CD Package and disk Songwriter’s royalties Recording artists’ royalties Total Variable Cost Contribution per CD unit $6.40 Chapter 2 Problem 1 b. Break-Even Analysis – Units and Dollars Total Fixed Cost Advertising and Promotion $275‚000 Studio Recording’s Overhead $250‚000 Total Fixed Cost $525‚000 BEVU = $525‚000 / $6.40 = 82‚031
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Foxy Originals 1. Discuss the pros and cons to launching the Foxy brand in the United States. To determine the pros and cons‚ we conducted a SWOT analysis: S(trengths) – Foxy Originals has saturated the Canadian market‚ which presents an opportunity for growth. The two owners have extensive experience in designing jewelry‚ having done so since they were in high school. They’re good at what they do and have had time to perfect their trade. They also have a firm grasp of who their target
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