Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Fluid Company operates a small factory in which it manufactures two products: Fruju and Aqua. Production and sales results for last years were as follows:
Fruju
Aqua
Units sold
9,800
21,000
Selling price per unit
$95
$75
Variable cost per unit
$50
$40
Fixed cost per unit
$24
For purposes of simplicity, the firm averages total fixed costs over the total number of units of Fruju and Aqua produced and sold.
The research department has developed a new product, Mixed Fruit as a replacement for Aqua. Market studies show that Fluid Company could sell 10,000 units of Mixed Fruit next year at a price of $115.
The variable cost per unit of Mixed Fruit is $45.
The introduction of product Mixed Fruit will lead to a 10% increase in demand for product Fruju and discontinuation of product Aqua.
If the company does not introduce the new product, it expects next year's results to be the same as last year's.
Required:
Write a memo to the management of Fluid Company discussing whether the Fluid Company should introduce Product Mixed Fruit next year. Explain why or why not with appropriate computations.
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 for the year and Prepare a stockholders' equity section of given case.
Prepare a master budget for the three-month period.
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
Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.
Complete the schedule to compute the pool rates for the different activities.
Prepare Company financial statements
This individual assignment is based on the TerraCycle Inc.
Discuss the ethical issues
Calculate the GDP in Income Approach and Expenditure Approach
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.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd