Question 1 The following is Addison Corporation’s contribution format income statement for last month: 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? Answer $400‚000 $600‚000 $120‚000 $880‚000 . 10 points Question 2 The following is Addison Corporation’s contribution format income statement for last month: The company has no beginning
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I) Appraise the results of operations of Prestige Data Service. Is the subsidiary really a problem to Prestige Telephone Company? Consider carefully the differences between reported costs and cost relevant for decisions that Daniel Rowe is considering. 1. The prestige Data Services grew from the needs of the Prestige Telephone Company to meet their needs of data handling at the time but the problem now is that the company is still operating at a loss. But is that a problem for the parent company
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Report To: The Board of Directors From: Date: Subject: Draft budget for 2013/14 and alternative strategies This is with reference to the board meeting held on 10th of October 2012‚ I have evaluated the draft budget and following four strategies which are under your consideration to enhance profitability of Sarika Ltd. (the Company) to meet its 20% return on capital. * Paul Burns’s Proposal (Shut down of Product Z and sale of related machinery for £5k) * Bob Berry’s Proposal
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Requirement 1 (a) Johnson’s believes that the transfer from the Cushion Division to the Furniture Division should be at market price rather than at cost however this depends on the capacity of the Cushion Division. Johnson’s believes that the transfer from the Cushion Division to the Furniture Division should be at market price rather than at cost however‚ if there is no idle or spare capacity in Cushion Division the market price minus the corresponding variable selling expense would be the
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Oil:Sales) Selling Price‚ per unit Liter= 338.55289 1.8 Contribution Margin per unit Liters = Selling Price per unit1.7 – Variable Costs per unit 1.6 = 173.45 1.9 Assuming that the average cost is almost constant for all the SKUs we get an approximation of the cost‚ selling price of the product and the per unit contribution. There for a 300 ML bottle‚ for which we have the offer the contribution shall be: (300/1000)*Contribution Margin per unit Liters1.8 = INR 52.04 1.91 Cost of the Pantene shampoo
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EXAM 1 Question 1 1.5 out of 1.5 points Managerial accounting stresses accounting concepts and procedures that are relevant to preparing reports for Selected Answer: internal users of accounting information. Correct Answer: internal users of accounting information. Question 2 1.5 out of 1.5 points The principle that managers follow when they only investigate departures from the plan that appear to be significant is commonly known as Selected Answer: management by exception. Correct
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TermPaperWarehouse.com - Free Term Papers‚ Essays and Research Documents The Research Paper Factory * Search * Browse * Donate * Saved Papers ------------------------------------------------- Top of Form Bottom of Form * Home Page » * Business and Management Jot Toy Case In: Business and Management Jot Toy Case   Note: This report is far more comprehensive than would be expected from a candidate in exam conditions. It is more detailed for teaching purposes.  T4- Part
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on the CVP analysis of the three business plans provided by Digital Ltd‚ I would like to recommend the Alternative 1 as the most profitable one. This is mainly for three reasons‚ which are motivation factor‚ lower fixed cost and higher contribution margin and highest net income of all the three. Motivating is a very important factor in boosting the sales (Businessballs‚ 2012). Since there is a motivation factor included in Alternative 1‚ it would be highly beneficial for the company as the forecasted
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Summary Prestige Data Services is a subsidiary of Prestige Telephone Company‚ designed to perform data processing for the telephone company and also to sell computer services to other companies and organizations. The subsidiary started operations in 1995 and has yet to experience a profitable month and by the end of 1996 its income was low enough to necessitate a report to shareholders. Mrs. Bradley thinks the company just needs more time while Mr. Rowe feels it is time to reassess Prestige
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and Top management. Sales Management and financial results Financial Results are another objective of sales management and are closely related and therefore sales management has financial implications as well. Sales – Cost of Sales = Gross Profit Gross Margin – Expenses = Net profit. Thus the variation in Sales will directly affect the Net profit of a company. Hence maintaining and managing sales is important to keep the product / service / organization financially viable. The Objectives of
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