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Maga Company, which has only one product, has provided the following data concerning its most recent month of operations:
Required:
a. What is the unit product cost for the month under variable costing?
b. What is the unit product cost for the month under absorption costing?
c. Prepare a contribution format income statement for the month using variable costing.
d. Prepare an income statement for the month using absorption costing.
e. Reconcile the variable costing and absorption costing net operating incomes for the month.
How many shares of common stock are issued and how many shares of common stock are outstanding?
Preparing the direct materials budget: It takes three pounds of direct materials to produce the Regular product and five pounds of direct materials to produce the Deluxe product.
Make a distinction between a product item, a product mix, and a product line. Give examples.
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The Vice President of Operations would like to increase profitability, improve customer service, and expand the business. Discuss the role of performance measures in an organization.
George Marcus, a recent college graduate, has been appointed by Taylor Corporation at a salary of $54,000 per year. In anticipation of his salary, George bought a $20,000 new ski boat and will pay for it at a rate of $425 per month
JetSet Machinations, Inc. expects to become very successful in manufacture and sales of its fuel-efficient high speed airplane, the S2S-900. This plane will be sold at about $70 million per plane.
Discuss how a cost-volume-profit analysis would be performed for the company that sells more than one product. (Suppose that the sales mix is known.)
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Kiel Center sells only on credit (no cash sales). Prior collection patterns describe that 28% of month's sales are gathered in the month of sale, 51% are collected in month after the sale, and 19% are collected in second month after the sale.
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