Reference no: EM132326981

Question

A. Mamu Company has two service departments (Cafeteria Services & Maintenance Services). Mamu has two production departments (Printing Department & Binding Department.) Cafeteria Services has costs of $140,000 and are allocated to production departments based on their number of employees. Employees are:
Cafeteria Services 2

Maintenance Services 2

Printing Department 4

Binding Department 8

Mamu uses the step method for service cost allocation. Use this information to determine for Mamu Company the dollar amount of its Cafeteria costs that are to be absorbed by: (Round & enter final answers to: the nearest whole dollar for total dollar, nearest penny for unit costs or nearest whole number for units)

1. the Printing Department

2. the Binding Department

B. During FY 2016, Neti Company sold 16,000 units for $84,000. Neti had $2.75 variable costs per unit sold. Neti also reported $28,000 of fixed costs. Use this information to determine FY 2016:

1. Contribution Margin per unit

2. Breakeven in Units

3. Breakeven in Total Sales

Round any total dollar value to the nearest whole dollar & enter as whole dollars only. Round any unit dollar value to the nearest penny & enter with both dollar(s) & cents. Round any unit non-dollar decimal numbers to the next higher whole number and enter as a whole number.