Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Med Max sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 7%. For example, if a hospital buys supplies from Med Max that had cost Med Max $100 to buy from manufacturers, Med Max would charge the hospital $107 to purchase these supplies.
For years, Med Max believed that the 7% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits Med Max decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown below:
Med Max gathered the data below for two of the many hospitals that it serves-City General and County General (each hospital purchased medical supplies that had cost Med Max $34,000 to buy from its manufacturers):
Activity
Compute the total revenue that Med Max would receive from City General and County General. (Omit the "$" sign in your response.)
Compute the activity rate for each activity cost pool. (Round the "Line item picking" to 2 decimal places. Omit the "$" sign in your response.)
Compute the total activity costs that would be assigned to City General and County General. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.)
Compute Med Max's customer margin for City General and County General. (Hint: Do not overlook the $34,000 cost of goods sold that Med Max incurred serving each hospital.) (Loss amount should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.)
the net present value method assumes that the projects cash flows are reinvested at the? a. internal rate of return b.
a prepare income statements segmented by products. Include a column for the entire firm in the statement. b. if ellie manufactureing eliminates product B, what would be the impact on company profits? c. ellie is considering the purchase of automated ..
database research strategies include defining the research necessary to answer the research question. consider the
Identify and explain the top five reasons private companies go public.
Assuming Alison uses the equity method, what balance should appear in the Investment in Holister account as of December 31, 2013?
Assume common stock is the only class of stock outstanding in the B-Bar-B Corporation. Total stockholders' equity divided by the number of common stock shares outstanding is called:
financial exercises1. the information below shows the assets liabilities and net worth fo a small business. arrange the
Assume for 2011 that Don made one transfer involving his granddaughter as follows: Don opened a joint checking account with his granddaughter, with right of survivorship, for her college expenses.
Suppose the rate of return on a 10-year T-bond is 6.85%, the expected average rate of inflation over the next 10 years is 2.0%, the MRP on a 10-year T-bond is 0.9%, no MRP is required on a TIPS, and no liquidity premium is required on any Treasury..
suppose a company paid dividend of 15 cents on its ordinary share of n1.50 each. the company expected to grow its
On March 1, 2010, Freeze Company hires a new employee who will start to work on March 6. The employee will be paid on the last day of each month. Should a journal entry be made on March 6? Why or why not?
What are the limitations of using break-even point and how would you incorporate this point with management strategic planning? 100-200 words please.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd