1. Which product has the highest profit value? 2. What is the profit value for the product with the highest profit value? 3. Do any of the products have a negative profit value (the company is losing money on them)? 4. If there are products with a negative profit value, which products are those? 5. Do you think the company should keep selling the “Shirt Girls (pink)” product? Why or why not?
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Part 1: Use the Value per Products Description bar chart.
1. Which product has the highest profit value?
2. What is the profit value for the product with the highest profit value?
3. Do any of the products have a negative profit value (the company is losing money on them)?
4. If there are products with a negative profit value, which products are those?
5. Do you think the company should keep selling the “Shirt Girls (pink)” product? Why or why
not?
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- Mastery Problem: Cost-Volume-Profit Analysis Answer this question please Question Content Area Cost Behavior Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. UnitsProduced TotalLumberCost TotalUtilitiesCost Total MachineDepreciationCost 7,000 shelves $84,000 $9,550 $140,000 14,000 shelves 168,000 17,600 140,000 28,000 shelves 336,000 33,700 140,000 35,000 shelves 420,000 41,750 140,000 1. Determine whether the costs in the table are variable, fixed, mixed, or none of these. Lumber Utilities Depreciation 2. For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "0". Recall that, for N = Number of Units Produced, Total Costs = (Variable…Mastery Problem: Cost-Volume-Profit Analysis Question Content Area Cost Behavior Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. UnitsProduced TotalLumberCost TotalUtilitiesCost Total MachineDepreciationCost 11,000 shelves $121,000 $14,650 $140,000 22,000 shelves 242,000 27,300 140,000 44,000 shelves 484,000 52,600 140,000 55,000 shelves 605,000 65,250 140,000 1. Determine whether the costs in the table are variable, fixed, mixed, or none of these. Lumber Utilities Depreciation 2. For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "0". Recall that, for N = Number of Units Produced, Total Costs = (Variable Cost Per Unit x N) + Fixed…1. Company ABC produces and sells product X. Using information given below calculate Total Revenue (TR), Average Revenue (AR) and Marginal Revenue (MR).. Solution should be Excel format Quantity Price per product (EUR) Total Revenue (EUR) Average Revenue (EUR) Marginal Revenue (EUR) 1 100 100 100 100 2 95 190 95 90 3 90 270 90 80 4 85 340 85 70 5 80 400 80 60 6 75 450 75 50 7 70 490 70 40 8 65 520 65 30 9 60 540 60 20 10 50 500 50 -40
- Question Content Area needing anwser to #2B Mastery Problem: Cost-Volume-Profit Analysis Question Content Area Cost Behavior Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. UnitsProduced TotalLumberCost TotalUtilitiesCost Total MachineDepreciationCost 7,000 shelves $84,000 $9,550 $140,000 14,000 shelves 168,000 17,600 140,000 28,000 shelves 336,000 33,700 140,000 35,000 shelves 420,000 41,750 140,000 1. Determine whether the costs in the table are variable, fixed, mixed, or none of these. Lumber Utilities Depreciation 2. For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "0". Recall that, for N = Number of Units Produced, Total…Value chain classifications Match each of the following cost items with the value chain business function where you would expect the cost to be incurred: Business Function Cost Item Answera. Research and development 1. Labor time to repair products under warrantyb. Design 2. TV commercial spotsc. Production 3. Labor costs of fi lling customer ordersd. Marketing 4. Testing of competitor’s producte. Distribution 5. Direct manufacturing labor costsf. Customer service 6. Development of order tracking system forthe Internet7. Printing cost of new product brochures8. Hours spent designing childproof bottles9. Training costs for representatives to staff the customer call center10. Installation of robotics equipment in manufacturing plantplease answers part d only here answers of a b c Step 1 Markup Markup is amount added to cost to recover overhead and gain profits. Markup is also generally known as profit. Markup = Selling Price - Cost Price Markup % on Cost = Markup/Cost * 100 Step 2 Part (a) Selling Price of signature jeans = OMR 2300 Cost Price of signature jeans = OMR 1800 Markup = Selling Price - Cost Price Markup = OMR 2300 - OMR 1800 = OMR 500 Markup amount in OMR = OMR 500 Markup as a % of cost = Markup amount/Cost Price * 100 Markup as a % of cost = OMR 500/OMR 1800 *100 Markup as a % of cost = 27.7777777% Hence, Markup as a percentage of cost = 27.777777% Step 3 Part (b) Lamp Cost = OMR 200 The markup on Selling Price = 40% Markup = Selling Price - Cost Price Hence, Selling Price = Cost Price + Markup We know, 40% markup is on selling price Hence, Let's consider selling price as 'x' Markup = 40% on selling price Markup = 40% * x Markup = .40x Putting these values in equation we get, Selling Price = Cost…
- Use this a pivot table to calcuate the number of total sales revenue, total profit and average profit margin for each product category: Product Category Sum of Quantity Sum of Equipment Cost Sum of Sale Amount Bar Equipment 510 11504.3726 31277.3 Commercial Appliances 730 143395.992 218123.25 Concession Equipment 352 155565.7424 240188.6 Fryers 1874 44151.6007 73716.1 Ovens and Ranges 605 491640.5884 645171.45 Refrigerators and Coolers 457 457926.0049 675414.5 Warmers 395 431708.5537 467847.3 Grand Total 4923 1735892.855 2351738.5Restate the following income statement for a retailer in contribution format. Sales revenue ($100 per unit) $ 91,000 Less cost of goods sold ($58 per unit) 52,780 Gross margin 38,220 Less operating costs: Commissions expense ($7 per unit) $ 6,370 Salaries expense 7,800 Advertising expense 5,900 Shipping expense ($2 per unit) 1,820 21,890 Operating income $ 16,330 Per Unit select an income statement item $enter a dollar amount $enter a dollar amount select an opening name for section one : select an income statement item $enter a dollar amount enter a dollar amount select an income statement item…Tariq Company is a multiproduct firm. Presented below is information concerning one of its products, the Jayhawk Date Transaction Quantity Unit Cost 1/1 Beginning inventory 1,100 OMR12 2/4 Purchase 2,200 18 2/20 Sale 2,800 30 4/2 Purchase 3,100 23 11/4 Sale 2,300 33 Instructions: Compute cost of goods sold, assuming Tariq uses periodic system, FIFO cost flow.
- Missing Data: Basic CVP Concepts Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. (Hint: One way to find the missing amounts would be to prepare a contribution format income statement for each case, enter the known data, and then compute the missing items.) a. Assume that only one product is being sold in each of the four following case situations: b. Assume that more than one product is being sold in each of the four following case situations:Cost of quality and value-added/non-value-added reports for a service company A. Using the information in Exercise 17, identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. B. Prepare a cost of quality report. Assume that sales are 3,000,000. (Round percentages to one decimal place.) C. Prepare a value-added/non-value-added analysis. D. Interpret the information in (B) and (C).Requirements Dialog content starts 1. Allocate revenue from the sale of each unit of Dynamic Duo to Smarty and Sublime using the following: a. The stand-alone revenue-allocation method based on selling price of each product b. The incremental revenue-allocation method, with Smarty ranked as the primary product c. The incremental revenue-allocation method, with Sublime ranked as the primary product d. The Shapley value method 2. Of the four methods in requirement 1, which one would you recommend for allocating Paris's revenues to Smarty and Sublime? Explain.
