CENGAGENOWV2 FOR WARREN'S FINANCIAL & M
13th Edition
ISBN: 9781305267848
Author: Duchac
Publisher: Cengage Learning
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Chapter 24, Problem 24.3APR
a)
To determine
Differential Analysis: Differential analysis refers to the analysis of differential revenue that could be gained or differential cost that could be incurred from the available alternative options of business.
To Prepare: The differential analysis of Company PC as on August 21, to decide whether to promote moisturizer, on an additional production of 22,000 units or perfumes, on an additional production of 20,000 units.
b)
To determine
To State: The reasons for supporting or opposing the tentative decision.
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Differential Analysis for Sales Promotion Proposal
Parisian Cosmetics Company is planning a one-month campaign for September to promote sales of one of its two cosmetics products. A total of $140,000 has been budgeted for advertising, contests, redeemable coupons, and other promotional activities. The following data have been assembled for their possible usefulness in deciding which of the products to select for the campaign:
Moisturizer
Perfume
Unit selling price
$58
$64
Unit production costs:
Direct materials
$10
$14
Direct labor
4
5
Variable factory overhead
2
4
Fixed factory overhead
6
6
Total unit production costs
$22
$29
Unit variable selling expenses
18
17
Unit fixed selling expenses
10
7
Total unit costs
$50
$53
Operating income per unit
$8
$11
No increase in facilities would be necessary to produce and sell the increased output. It is anticipated that 25,000 additional units…
Differential Analysis for Sales Promotion Proposal
Parisian Cosmetics Company is planning a one-month campaign for September to promote sales of one of its two cosmetics products. A total of $168,000 has been budgeted for advertising, contests, redeemable coupons, and other promotional activities. The following data have been assembled for their possible usefulness in deciding which of the products to select for the campaign:
Moisturizer
Perfume
Unit selling price
$61
$67
Unit production costs:
Direct materials
$11
$14
Direct labor
4
5
Variable factory overhead
3
4
Fixed factory overhead
5
7
Total unit production costs
$23
$30
Unit variable selling expenses
19
18
Unit fixed selling expenses
11
6
Total unit costs
$53
$54
Operating income per unit
$8
$13
No increase in facilities would be necessary to produce and sell the increased output. It is anticipated that 30,000 additional units…
Differential Analysis for Sales Promotion Proposal
Parisian Cosmetics Company is planning a one-month campaign for September to promote sales of one of its two cosmetics products. A total of $123,000 has been budgeted for advertising, contests, redeemable coupons, and other promotional activities. The following data have been assembled for their possible usefulness in deciding which of the products to select for the campaign:
Moisturizer
Perfume
Unit selling price
$58
$64
Unit production costs:
Direct materials
$10
$14
Direct labor
4
5
Variable factory overhead
2
4
Fixed factory overhead
6
6
Total unit production costs
$22
$29
Unit variable selling expenses
18
17
Unit fixed selling expenses
10
7
Total unit costs
$50
$53
Operating income per unit
$8
$11
No increase in facilities would be necessary to produce and sell the increased output. It is anticipated that 22,000 additional units…
Chapter 24 Solutions
CENGAGENOWV2 FOR WARREN'S FINANCIAL & M
Ch. 24 - Explain the meaning of (A) differential revenue,...Ch. 24 - A company could sell a building for 250,000 or...Ch. 24 - A chemical company has a commodity-grade and...Ch. 24 - A company accepts incremental business at a...Ch. 24 - Prob. 5DQCh. 24 - Prob. 6DQCh. 24 - In the long run, the normal selling price must he...Ch. 24 - Although the cost-plus approach to product pricing...Ch. 24 - Prob. 9DQCh. 24 - What is the appropriate measure of a products...
Ch. 24 - Lease or sell Claxon Company owns a machine with a...Ch. 24 - Prob. 24.1BPECh. 24 - Discontinue a segment Product TS-20 has revenue of...Ch. 24 - Prob. 24.2BPECh. 24 - Make or buy A restaurant bakes its own bread for a...Ch. 24 - Make or buy A company manufactures various sized...Ch. 24 - Replace equipment A machine with a book value of...Ch. 24 - Replace equipment A machine with a book value of...Ch. 24 - Process or sell Product T is produced for 5.90 per...Ch. 24 - Process or sell Product D is produced for 24 per...Ch. 24 - Prob. 24.6APECh. 24 - Accept business at special price Product A is...Ch. 24 - Prob. 24.7APECh. 24 - Product cost markup percentage Green Thumb Garden...Ch. 24 - Bottleneck profit Product A has a unit...Ch. 24 - Prob. 24.8BPECh. 24 - Prob. 24.1EXCh. 24 - Prob. 24.2EXCh. 24 - Prob. 24.3EXCh. 24 - Differential analysis for a discontinued product...Ch. 24 - Prob. 24.5EXCh. 24 - Prob. 24.6EXCh. 24 - Prob. 24.7EXCh. 24 - Make-or-buy decision for a service company The...Ch. 24 - Machine replacement decision A company is...Ch. 24 - Differential analysis for machine replacement Kim...Ch. 24 - Prob. 24.11EXCh. 24 - Sell or process further Rise N Shine Coffee...Ch. 24 - Decision on accepting additional business...Ch. 24 - Accepting business at a special price Portable...Ch. 24 - Decision on accepting additional business...Ch. 24 - Service yield pricing and differential analysis...Ch. 24 - Product cost method of product pricing La Femme...Ch. 24 - Product cost method of product costing Smart...Ch. 24 - Target costing Toyota Motor Corporation uses...Ch. 24 - Target costing Instant Image Inc. manufactures...Ch. 24 - Prob. 24.21EXCh. 24 - Product decisions under bottlenecked operations...Ch. 24 - Appendix Total cost method of product pricing...Ch. 24 - Appendix Variable cost method of product pricing...Ch. 24 - Prob. 24.1APRCh. 24 - Differential analysis for machine replacement...Ch. 24 - Prob. 24.3APRCh. 24 - Differential analysis for further processing The...Ch. 24 - Prob. 24.5APRCh. 24 - Product pricing and profit analysis with...Ch. 24 - Differential analysis involving opportunity costs...Ch. 24 - Differential analysis for machine replacement...Ch. 24 - Differential analysis for sales promotion proposal...Ch. 24 - Differential analysis for further processing The...Ch. 24 - Prob. 24.5BPRCh. 24 - Prob. 24.6BPRCh. 24 - Ethics in Action Aaron McKinney is a cost...Ch. 24 - Prob. 24.2CPCh. 24 - Prob. 24.3CPCh. 24 - Prob. 24.4CP
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