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A soft drink company has three bottling plants throughout the country. Bottling occurs at the regional level because of the high cost of transporting bottled soft drinks. The parent company supplies each plant with the syrup. The bottling plants combine the syrup with carbonated soda to make and bottle the soft drinks. The bottled soft drinks are then sent to regional grocery stores.The bottling plants are treated as costs centers. The managers of the bottling plants are evaluated based on minimizing the cost per soft drink bottled and delivered. Each bottling plant uses the same equipment, but some produce more bottles of soft drinks because of different demand.
The costs and output for each bottling plant are: A B CUnits Produced 10,000,000 20,000,000 30,000,000Variable Costs $ 200,000 $ 450,000 $ 650,000Fixed Costs $1,000,000 $1,000,000 $1,000,000a. Estimate the average cost per unit for each plant.b. Why would the manager of plant A be unhappy with using the average cost as the performance measure?c. What is an alternative performance measure that would make the manager of plant A happier?d. Under what circumstances might the average cost be a better performance measure?
Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Stallman report as its December 31 inventory?
1. why is there a mandatory duty to bargain in labor-management negotiations when such a duty does not exist elsewhere
A is a fixed expense; B is a variable cost. During the current year the level of activity has reduced but is still within the relevant range.
How much should the National Credit Union invest in municipal bondsso as to maximize its return on investment? What is the maximal return on investment?
Vincent Corporation has 100,000 share of $100 par common stock outstanding. On June 30, Vincent Corporation declared a 5% stock dividend to be issued July 30 to stockholders of record July 15. The market price of the stock was $132 a share on June..
one of the products of hearts amp flowers is a one-pound boxof chocolate candy packaged in a box bearing the
what circumstances lead to the recording of a deferred tax asset.
Montana Co. has determined its year-end inventory on a FIFO basis to be $600,000. Information pertaining to that inventory is as follows: What should be the carrying value of Montana's inventory?
You have been employed as an entry level management accountant for a little under a year. you suspect that your immediate supervisor is involved in asignificant fraud involving diverting of company assetts to personal use.
describe the magnetic field in terms of magnitude and direction produced inside a solenoid when it is driven bya a
Show how any deferred tax amounts should be classified and reported on the 2006 balance sheet. The tax rate is 40%.
question 1.nbspnbspnbspnbspnbsp iowa steakhouse opened a new restaurant on the site of an existing building. it paid
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