• Q : Problem on contribution margin ratio....
    Finance Basics :

    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.

  • Q : Produce to maximize profit....
    Finance Basics :

    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?

  • Q : Contribution margin per unit....
    Finance Basics :

    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

  • Q : Production and sales departments....
    Finance Basics :

    Explain how much of the accounting department costs will be allocated to the production and sales departments?

  • Q : Payroll department costs....
    Finance Basics :

    What amount of the payroll department costs will be allocated to the molding department?

  • Q : Amount of shipping department costs allocated....
    Finance Basics :

    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

  • Q : Activity-based costing....
    Finance Basics :

    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:

  • Q : Calculate the total cost assigned to the money market....
    Finance Basics :

    Compute the total cost assigned to the money market checking account.

  • Q : Segmented contribution income statements....
    Finance Basics :

    Segmented contribution income statements are as shown and fixed costs applicable to both segments are allocated on the basis of sales.

  • Q : Problem related to convertible vehicles....
    Finance Basics :

    Explorer Company manufactures two products, hard-tops and covers for its convertible vehicles. Data for each gives:

  • Q : Distributing hospital supplies....
    Finance Basics :

    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.

  • Q : Impact of increase in retail store sales have profitability....
    Finance Basics :

    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?

  • Q : Demand and costs at various activity levels....
    Finance Basics :

    Iguana Company sells a single product. Iguana estimates demand and costs at different activity levels as follows:

  • Q : Relationships between price and demand....
    Finance Basics :

    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

  • Q : What would be the impact on profits....
    Finance Basics :

    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

  • Q : Problem on cost-plus pricing....
    Finance Basics :

    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.

  • Q : What price should be charged....
    Finance Basics :

    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

  • Q : Production of a high-tech portable electronic storage device....
    Finance Basics :

    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.

  • Q : Target costing methodology....
    Finance Basics :

    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

  • Q : What would be the cost per item ordered....
    Finance Basics :

    If all costs were assigned to customers based on the number of items ordered, determine the cost per item ordered?

  • Q : What is the resulting in- stock probability....
    Finance Basics :

    Assume that an order-up-to level of 5 is established. Determine the resulting in- stock probability?

  • Q : Reviewing the inventory....
    Finance Basics :

    They review their inventory and place orders each and every two days, on the same day that they receive deliveries of new inventory. They operate 7 days a week. If they were to implement an order up

  • Q : Poisson distribution with a mean....
    Finance Basics :

    Radio Shack sells a 32GB flash drive. Weekly demand for the 32GB flash drive in one of their stores is Poisson distributed with a mean of 1.25. The store places orders weekly and there is a one wee

  • Q : Problem related to in-stock probability....
    Finance Basics :

    Demands are independent across the weeks. Orders are placed weekly and the lead time to receive an order is 1 week. They want to hold adequate cylinders to make sure a 99.75% in-stock probability.

  • Q : Minimizing the inventory....
    Finance Basics :

    What order upto level should Supreme select to minimize their inventory for ACola while accomplishing at least a 99.25% in-stock probability?

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