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Cost-Volume-Profit Analysis and Strategy
Following are data from the prior year:
Sales$1,500,000
Variable costs (excluding shipping) 1,095,000
Shipping costs 135,000
Fixed costs 150,000
Required:
Problem 1. Using cost-volume-profit (CVP) analysis and the data provided, determine the maximum amount that Mr. Carter can pay for the trucks and still expect to attain budgeted net income.
Problem 2. At what price for the truck would Mr. Carter be indifferent between purchasing the new trucks and using a new carrier?
Problem 3. Mr. Carter has decided to use a new carrier, but now is worried its apparent lack of reliability may adversely affect sales volume. Determine the dollar amount of sales that Simmons can lose because of lack of reliability before any benefit from switching carriers is lost completely. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)
Pepsi Beverages processes soft drinks and bottles it as Marinda, Seven up and Coke. Allocate the joint costs using the physical output method
Explain the methods of separating mixed cost into fixed and variable costs. Show the statement of cost of goods manufactured for 31st December 2016
AYN 506 Accounting for Strategic Decision Making Assignment Help and Solution, Queensland University of Technology - Assessment Writing Service
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