The Production Of Flashlights By 50 % ( $ 2 ) Essay

Q5: What is the total unit cost and per unit profit for 1 kg of "complete male" at a retail price of Cr. 6,85 and with an allocation of cr. 1.20 for production fixed expenses?

The company has been functioning well in terms of generating profit and demand so far. However, there will be a 20% increase in demand for the next month of operations as predicted by management, and the production and supply management's problems may come as a problem they can no longer afford.

1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units?

The product cost per unit under absorption costing is $15.00 and under variable costing are 10.60.

• There would not be any capacity relief for Bromont until the production would be increased.

Next, the actual money that spent on this project is far exceed the budgeted amount. To date, it spent 12.55 million more than expected. However, this is not the end, there are still two testing remains incomplete which will cost company more to finish them. Regarding to each items, the item that results in the most unfavorable result is the software development that cost the company 12.90 million more to finish development. We should also notice that the items far behind the schedule are all related to the software. This tells us that the company is extremely not good at developing software. This may due to the sudden change from the medium segmentation focus to the high end products. I would initially recommend the company to have a joint venture with the other high end company to implement this project. However, as the project is almost done, the most important thing is how to promo this product that makes it profitable or at

found out that despite this cost reduction in material cost, the costs of producing the low -end units for

* Since the capacity is being expanded to increase production of Product C, it could be assumed that this increase should be allocated to this product. Production of Product A is to be scaled down, but its level of fixed costs has been assumed to be unchanged.

$1.6 billion / 466 thousand tpy = $3,433 (cost of capital per ton of capacity)

Option 2: Decrease Cost of Goods Sold and Expense by 20% due to the current economic climate.

* Production capacity is 10,000 units a year however they hope to construct a $45 million facility with a capacity of

switching  cost  to  find a different supplier to make a mold for their product to mass produce.  The

The company may have to pay higher production costs or may not be able to produce and

with a number of strategic issues facing a capital-intensive, mature industry. Their product costing system was

This has the effect of regarding the desired profit as an increase in the fixed costs to be covered by sales of the product. As the