Question 1 bobsnbspcompany sells one product with a

Assignment Help Managerial Accounting

Reference no: EM13376254

Question 1

Bob's Company sells one product with a variable cost of $5 per unit. The company is unsure what price to charge in order to maximize profits. The price charged will also affect the demand. If fixed costs are $100,000 and the following chart represents the demand at various prices, what price should be charged in order to maximize profits?

Units Sold Price

30,000 $10

40,000 $9

50,000 $8

60,000 $7

Question 2

A retailer purchased some trendy clothes that have gone out of style and must be marked down to 30% of the original selling price in order to be sold. Which of the following is a sunk cost in this situation?

Question 3

Carlton Products Company has analyzed the indirect costs associated with servicing its various customers in order to assess customer profitability. Results appear below:

Cost Pool

Annual Cost

Cost Driver

Annual Driver Quantity

Processing electronic orders	$1,000,000	Number of orders	500,000
Processing non-electronic orders	$2,000,000	Number of orders	400,000
Picking orders	$3,000,000	Number of different products ordered	800,000
Packaging orders	$1,500,000	Number of items ordered	50,000,000
Returns	$2,000,000	Number of returns	50,000

If all costs were assigned to customers based on the number of items ordered, what would be the cost per item ordered?

Question 4

Costa Company has a capacity of 40,000 units per year and is currently selling 35,000 for $400 each. Barton Company has approached Costa about buying 2,000 units for only $300 each. The units would be packaged in bulk, saving Costa $20 per unit when compared to the normal packaging cost. Normally, Costa has a variable cost of $280 per unit. The annual fixed cost of $2,000,000 would be unaffected by the special order. What would be the impact on profits if Costa were to accept this special order?

Question 5

A company has $6.40 per unit in variable costs and $4.50 per unit in fixed costs at a volume of 50,000 units. If the company marks up total cost by 0.59, what price should be charged if 65,000 units are expected to be sold?

Question 6

Customer profitability analysis might result in:

dropping some customers that are unprofitable.

lowering price or offering incentives to profitable customers.

giving incentives to all customers to place orders online.

All of the above.

Reference no: EM13376254

Questions Cloud

Farman appliance mart began operations on may 1 it uses a : farman appliance mart began operations on may 1. it uses a perpetual inventory system. during may the company had the

Determining fixed assets book valuethe balance in the : determining fixed assets book valuethe balance in the equipment account is 1375000 and the balance in the accumulated

Part onecompare and contrast the following three frameworks : part onecompare and contrast the following three frameworks cobit coso integrated control and erm.part twopriceright

Question 1 thenbspestrada company uses cost-plus pricing : question 1 thenbspestrada company uses cost-plus pricing with a 0.35 mark-up.nbsp the company is currently selling

Question 1 bobsnbspcompany sells one product with a : question 1 bobsnbspcompany sells one product with a variable cost of 5 per unit. the company is unsure what price to

Question 1 nbspritznbspcompany sells fine collectible : question 1 nbspritznbspcompany sells fine collectible statues and has implemented activity-based costing. costs in the

Question 1maxx inc has provided the following data from its : question 1maxx inc. has provided the following data from its activity-based costing systemactivity cost poolsnbsp

Sales mix decisiondr massy who specializes in internal : sales mix decisiondr. massy who specializes in internal medicine wants to analyze his sales mix to find out how the

The following exercise needs to be answered according to : the following exercise needs to be answered according to australian accounting standards board legislation and must

User Account

All Pages