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1. Computing contribution margin
AirTel Company sold 10,000 units of its product at a price of $80 per unit. Total variable cost is $50 per unit consisting of $40 in variable production cost and $10 in variable selling and administrative cost. Compute the contribution margin.
2. Computing unit cost under absorption costing
Rajeev Company reports the following information regarding its production costs. Compute its production cost per unit under absorption costing.
What are the the limits of the terms of trade between these two countries? How would rising cost (rather than constant costs) affect the extent of specialization and trade between these two countries?
The cost of repairing the component is $2,250. Illustrate what is the total recorded cost of the automatic score keeping equipment?
Identify the internal control strengths in PEI's system and identify the internal control weaknesses in PEI's system, and suggest ways to correct them.
The stock, which trades on a regional stock exchange, has a $25,000 FMV on the contribution date. Illustrate what is Yellow Corporation’s charitable contributions deduction for the current year?
Hess uses straight-line amortization. On March 1, 2011, Hess retired $400,000 of these bonds at 98 plus accrued interest. What should Hess record as a gain on retirement of these bonds? Ingore taxes.
Berkshire Inc. uses a periodic inventory system. At the end of 2012, it missed counting some inventory items, resulting in an inventory understatement by $600,000. Assume that Berkshire has a 30% income tax rate and that this was the only erro..
Evaluate the ABC cost of a resident day for each category of residents using assistance hours as the cost driver.
Prepare a scenario that is consistent with setting the risk of incorrect acceptance at 37 %. Choose a PPS sample of the above inventory population using the sample size determined in above.
Twelve percent of the containers were not returned. The deposits are based on the container cost marked up 20%. What is cost of goods sold relative to this forfeiture?
What will be the real effect on profit if the order is accepted? Elucidate why managers who focus on reported cost per unit may be inclined to turn down the order.
Calculation of good will - Total Shareholders' Equity of Little
On December 31, 2011, the fair value of the bonds was $668,000 as determined by their market value in the over-the-counter market. Find out the price of the bonds at January 1, 2011, and prepare the journal entry to record their issuance.
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