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A friend is deciding whether or not to start a business and discusses the matter with you. The business would involve assembling and selling a component that she has invented. She can obtain the parts required from various manufacturers.
She has estimated that she can sell 5,000 of these components a year at a selling price of £30 per unit. The variable costs of the component are £20 per unit and fixed costs would be £30,000 per annum. These fixed costs do not include a salary for your friend. She currently earns £25,000 per annum in her present job and would have to give this job up if she started her own business. Your friend is rather cautious and she is worried in case any of her estimates are incorrect.
You suggest that she uses cost-volume-profit analysis to help her make the decision and you are required to present examples of such analysis which may be useful to her. The information is to be presented in mathematical form.
Compute the overhead cost attributable to the Office Mart orders - Determine the customer margin for the OfficeMart orders under Activity-Based Costing
Your are an IT Project Proposal Manager. You have to sell your project to the senior funding management. You have been directed to use only 1 form of analysis to justify your costs.
Calculate the actual cost per pound of fiberglass purchased during August and calculate the direct materials purchase price variance for August.
Prepare journal entries to record the transactions for April and post them to the ledger accounts in Part 6.2. The company records prepaid and unearned items in balance sheet accounts.
Entries for issuing installment note transactions - Explain how the notes payable would be reported on the balance sheet at the end of the first year.
Prepare an effective-interest amortization table for the bond discount through the first two interest payments. Use exhibit 11A-1 as a guide, and round amounts to the nearest dollar.
1. define and discuss the federalprivate audit gap2. the coso framework describes components of internal control.nbsp
What was over- or under-applied manufacturing overhead in May -
Center City's General Fund has the following net resources at year end: $658,800 total fund balance $100,000 rainy day fund approved by the township governing board $2,500 of supplies inventory $75,000 state grant for snow removal
Special Revenue Fund - Voluntary Non-exchange Transactions. In FY 2012, the city expended $90,000 for park improvements from grant resources.
If the interest rate on the loan is 5%, what final payment will the bank require you to make so that it is indifferent to the two forms of payment?
What can be the effect of the price increase on the firm's FCF for the year?
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