What problems can arise if you use the results of your full costing approach for decision accounting, e.g. •Calculation of an additional order ? •Eliminating a product? •Assortment decisions? Are there alternatives for the decision accounting?
What problems can arise if you use the results of your full costing approach for decision accounting, e.g. •Calculation of an additional order ? •Eliminating a product? •Assortment decisions? Are there alternatives for the decision accounting?
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2TP: Roald is the sales manager for a small regional manufacturing firm you own. You have asked him to...
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Please solve the following task by using the attached picture of background knowledge.
What problems can arise if you use the results of your full costing approach for decision accounting,
e.g.
•Calculation of an additional order ? •Eliminating a product?
•Assortment decisions?
Are there alternatives for the decision accounting?
Transcribed Image Text:•Christine is a former sales representative at a flower market and she has the
mindset like a real entrepreneur. Consequently she started her own business.
She bought a truck on the second market and converted the truck into a mobile
sales truck. Christine's business are plants. She sells the plants at markets, trade
fairs and central locations in the region.
•She has four plant products in her sales program:
> Green leaves
- Red dream
> Yellow variety
> Pink lady
•Her sales figures of the products for the past month were as follows
Sales amount
Sales price per item
4.50 EUR
Green leaves
500
Red dream
Yellow variety
• Pink lady
450
3.80 EUR
8.20 EUR
7.00 EUR
300
400
Continue „Christine´s Mobile Plant Market“
The purchase prices are as follows (euros per unit):
Green leaves
2.00
Red dream
2.50
Yellow variety
3.00
Pink lady
4.00
Christine has the following additional costs:
Her salary, including ancillary costs of 2,300 euros per month
Vehicle costs per month without depreciation: 900 euros per month.
All other monthly costs, including interest for the loan: 600 euros
The depreciation is 6,000 euros per year.
Transcribed Image Text:Continue „Christine's Mobile Plant Market“
The business has the following finance structure:
Equity capital
50.000 euros
Loan capital
50.000 euros
The interest rate for the loan is 6% p.a.
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