Identify a way that john can turn potential fixed cost

Assignment Help Managerial Accounting
Reference no: EM132638312

Operating Leverage: John Diaz is the president of Pacific Refrigeration.

The company has 2,000 employees and manufactures and sells a variety of refrigeration units for commercial use. Recently, the company experienced large losses due to a downturn in the econ- omy and a subsequent decline in sales. John thinks the losses were particularly large because his company has too many fixed costs.

Question A. Expand on John's thought. How are the large losses related to fixed costs?

Question B. identify a way that John can turn potential fixed costs into variable costs.

Reference no: EM132638312

Questions Cloud

Evaluate new project with the npv method : The interest expense will be $10,000 per year. Please evaluate this new project with the NPV method if the tax rate is 35% and the cost of capital is 15%.
Find amount of regular quarterly loan payments : If the interest rate is 13.5%p.a. compounded quarterly what is the amount of regular quarterly loan payments.
What is the variable overhead spending variance for march : What is the variable overhead spending variance for March? (Do not round intermediate calculations. Round the actual overhead rate to two decimal places)
Determine what will be the revised net operating income : Due to erratic sales of sole product-a high-capacity battery for laptop, If the sales manager is right, what will be the revised net operating income (loss)?
Identify a way that john can turn potential fixed cost : The company has 2,000 employees and manufactures and sells a variety. Identify a way that John can turn potential fixed costs into variable costs.
Challenges generated by covid-19 in digital finance : What steps can be taken into overcome such challenges generated by COVID-19 in digital finance?
Many legacy systems require normalization : Many legacy systems require normalization. Optimal database design recognizes proper organization of table structures and relationships.
Determine new project with the npv method : Please evaluate this new project with the NPV method if the tax rate is 35% and the cost of capital is 15%.
Command and natural language and developing commands : Suggest three techniques to overcome the challenges of implementing natural language into interface designs

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd