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Problem 1: One way for managers to cope with uncertainty in profit planning is to
a. use CVP analysis because it assumes certainty.
b. recommend management hire a futurist whose work is to predict business trends.
c. wait to see what does happen and a report based on actual amounts.
d. use sensitivity analysis to explore various what-if scenarios in order to analyze changes in revenues or costs or quantities.
Problem 2: The Beta Mu Omega Chi (BMOC) fraternity is looking to contract with a local band to perform at its annual mixer. If BMOC expects to sell 250 tickets to the mixer at $10 each, which of the following arrangements with the band will be in the best interest of the fraternity?
a. $2500 fixed fee
b. $1000 fixed fee plus $5 per person attending
c. $10 per person attending
d. $25 per couple attending
How do calculate what the budgeted sales will be? Assume that COGS is a variable cost and that operating expenses fixed cost. What budgeted sales for 2012?
Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods.
LED lamps, Use life cycle costs to recommend a system for the University. Show the calculations to support your recommendations.
Liltua Company pays $375,280 for real estate plus $20,100 in closing costs. The real estate consists of land appraised at $157,040; land improvement appraised at $58,890; and a building appraised at $176,670. Allocate the total cost among the thre..
Refer to Moonbeam Company. Using the four-variance approach, what is the variable overhead efficiency variance?DLH per unit3.00
Commercial accounting and generally accepted accounting principles, generally describe the accrual basis of accounting over the cash basis. Describe both bases of accounting and explain the differences.
A method of estimating bad debts expense that adds a detailed examination of outstanding accounts and evaluate what is the gain/loss on the sale of equipment
Orange Orchards is a producer of premium juice. Which of the following would be classified as a facility-level cost? Insurance cost for the orchard
Determine the amounts to be reported for cost of goods sold and gross profit.
Create a two-way data table for net income by varying: 1) Gross Profit (Low = 100,000, High = 700. Var.Cost% (Low = 0.10, High = 0.30, Base_Case = 0.20)
Prepare calculations all relevant costs and irrelevant costs related to the urgent-order of Coved Ltd. charges a price of $14.00 per liter and delivery charges
Prepare a statement of cash flows. Include proper heading for the financial statement, and categorize the given information into the categories of operating, investing and financial activities.
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