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The following is for a Capital setting:
Fixed cost = $4,000,000Variable costs per member = $200Enrollment fee per member = $400Target profit = $600,000
1. Determine the contribution margin for this practice.
2. Determine the accounting break even point in the terms of number of Enrollees.
3. Determine the economic break even point in terms of number of Enrollees.
Recognize a product or service in your organization which could use ABC. You can as well use this technique for selling and administrative costs.
Discuss the factors that a company must consider when deciding whether to use a job order or a process cost system. What might be the consequences to a company if they make the wrong choice?
AGL has published an annual sustainability report since 2004 to communicate sustainability performance in the areas of customers, community, people, economic, climate change and environment.
Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.
What are the advantages and disadvantages of standard costing in management accounting?
To implement target costing for a new product, companies often set up a cross-functional team with members from engineering, marketing, and costing accounting. Why is a cross-functional team desirable when implementing the target costing approach..
Recognize three key learning points with respect to application of concepts like fixed costs, variable costs, contribution margin, breakeven analysis, indifference point, and operating leverage to organization's overall financial performance.
What should the Manhattan Company do to improve its profitability? Consider pricing and product-level changes among your suggest. Who should be involved in implementing your recommendations?
Applying Activity Based Costing
Disk City, Inc. is a retailer for digital video disks. The projected net income for the current year is $2,740,000 based on a sales volume of 270,000 video disks.
What is a service or product in McDonald's which can employ activity based costing? What are three activities for activity based costing and the correct cost drivers for them? Give an estimate for application rates of these drivers.
What would be some particular examples of advantages and disadvantages of job order costing?
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