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Dunning Ltd. manufactures a popular power nail gun suitable for the home renovator. Financial and other data for this product for the last twelve months are as follows:
Sales 20,000 units
Selling price $130 per unit
Variable manufacturing cost $50 per unit
Fixed manufacturing costs $400,000
Variable selling and administrative costs $30 per unit
Fixed selling and administrative costs $300,000.
The directors of Dunning Ltd. want to try to increase the profitability of this product and invited senior staff to suggest how this might be done. Three suggestions have been received.
You have been asked by the Dunning board to comment on each of these three proposals. Draft a report in response to this request. You are not asked to make an outright choice, but rather to analyse the potential strengths and weaknesses of each proposal by calculating break-even point. The sales volumes forecast by each staff member should be treated as estimates only and your report should examine the effects of variations in actual sales from these forecasts and its respective break-even point. Show your calculations to support your comments and mention qualitative factors that may also be involved.
Prepare all required journal entries, being certain to indicate the type of fund in which each entry would be made.
Salt Lake Company's 2013 income statement and selected balance sheet data at December 31, 2012 and 2013 follow.
HI5017 Managerial Accounting Assignment, Holmes Institute. You are required to prepare a report to comment on the suitability of the TDABC for a company
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straightforward computation of overhead variancesthe following data are the actual results for marvelous marshmallow
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Boss Company's standard cost accounting system recorded this information from its December operations.
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Aloha Company uses a perpetual inventory system. It entered into the following calendar year 2013 purchases and sales transactions.
Calculate Betty's work in process inventory balance at December 31, 2020 - The actual overhead cost incurred during 2020 amounted to $10,000
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