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By using the high low method, with student credit hours as the activity driver, write down the equation for facilities cost (FC) as a function of student credit hours?
Marshal is considering the purchase of new equipment that would decrease variable costs per unit to $16, however fixed costs would raise to $820,000. Above what volume would Marshal be better off wit
Rambles Toyland makes a product that sells for $70 per unit and has $45 per unit in variable costs. Annual fixed costs are $24,000. If Rambles sells 10 units less than breakeven, explain how much lo
Fixed manufacturing costs total $1,250 per month, while fixed selling and administrative costs total $2,500. Explain how many phones should be sold to accomplish the breakeven point?
Byters on Call gives computer repairs on-site and has a contribution margin ratio of 32%, a contribution margin per service call of $5, and fixed costs of $21,160 per month.
Donto can sell as many buckets as it can produce of either model. Explain how many of each model must Donto produce to maximize the profit in May considering the constraint?
Product A consists of a contribution margin per unit of $500 and required 2 hours of machine time. Product B consists of a contribution margin per unit of $1,000 and requires 5 hours of machine time
Explain how much of the accounting department costs will be allocated to the production and sales departments?
What amount of the payroll department costs will be allocated to the molding department?
Throughout the period, the Far East sales office generated 680 orders for a total of 6,120 items. These orders were shipped in 1,495 boxes. What amount of shipping department costs must be allocated
Library Resources Company employs activity-based costing. The company produces soft and hard-cover books. The estimated costs and expected activity for each of the activity pools follow:
Compute the total cost assigned to the money market checking account.
Segmented contribution income statements are as shown and fixed costs applicable to both segments are allocated on the basis of sales.
Explorer Company manufactures two products, hard-tops and covers for its convertible vehicles. Data for each gives:
Molina Medical Supply Company is trying to decide whether or not to continue the distributing hospital supplies. The given information is available for Molina's business segments.
Suppose that if hospital supplies were dropped, retail store sales would rise by 25%. What would the impact of the rise in retail store sales have on overall profitability?
Iguana Company sells a single product. Iguana estimates demand and costs at different activity levels as follows:
Jackson Company is trying to find out the optimal price to charge for its PUNCH model. Jackson has fixed costs of $50,000 and the PUNCH has variable costs of $12.00 per unit. Jackson has determined
Normally, Costa has a variable cost of $280 per unit. The annual fixed cost of $2,000,000 would be unaffected by the special order. What would be the impact on profits if Costa were to accept this s
The Pure Company utilizes cost-plus pricing with a 50% mark-up. The company is presently selling 100,000 units at $12 per unit. Each unit has a variable cost of $6.
A company consists of $8.00 per unit in variable costs and $4.00 per unit in fixed costs at a volume of 50,000 units. If the company marks up total cost by 60%, what price must be charged if 60,000
The chief engineer at Tech Deals has proposed production of a high-tech portable electronic storage device to be sold at a 30 percent markup above its full cost.
Several managers and employees from the cost accounting department and the marketing department are as well on the team to assess the product and find out the cost using a target costing methodology
If all costs were assigned to customers based on the number of items ordered, determine the cost per item ordered?
Assume that an order-up-to level of 5 is established. Determine the resulting in- stock probability?