MANAGERIAL ACCOUNTING F/MGRS.
6th Edition
ISBN: 9781264100590
Author: Noreen
Publisher: RENT MCG
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Chapter 6A, Problem 6A.2E
1.
To determine
Introduction: The difference in costs between the variable alternative is used to calculate financial advantage and disadvantage.
To calculate: The profit M earn during first week if price was $3.5
2.
To determine
Introduction: The difference in costs between the variable alternative is used to calculate financial advantage and disadvantage.
To compute: The percentage change in unit sales.
3.
To determine
Introduction: The difference in costs between the variable alternative is used to calculate financial advantage and disadvantage.
To compute: The profit M earn during second week if price was $4
4.
To determine
Introduction: The difference in costs between the variable alternative is used to calculate financial advantage and disadvantage.
To compute: The increase of M profit in the first and second week.
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Question 3 of 5
RETAIL SALES A bookstore can obtain a
certain gift book from the publisher at a cost of
$3 per book. The bookstore has been offering the
book at the price of $15 per copy, and at this
price, has been selling 200 copies a month. The
bookstore is planning to lower its price to
stimulate sales and estimates that for each $1
reduction in the price, 20 more books will be sold
each month.
Find the optimal selling price.
Select the correct response:
None of the choices
$14
$16
$12
$10
er 4 homework
Book
Print
erences
Mc
Graw
Hill
!
Q
1
N
Parkview Fish Tacos sells tacos for $5.50 each. The cost of each taco follows:
Materials (food)
Labor
Variable overhead
Fixed overhead ($7,200 per month, 4,500 tacos per month)
Total costs per taco
One of Parkview's regular customers asked the company to fill a special order of tacos at a selling price of $4.50 each for a youth
basketball tournament at the local school. Parkview has capacity to fill it without affecting total fixed costs for the month. Parkview's
general manager (and owner and cook) was concerned about selling the tacos below the cost of $4.45 and has asked for your advice.
13,532
Required:
a. Prepare a schedule to show the impact on Parkview's profits of providing 350 tacos in addition to the regular production and sales
of 4,500 tacos per month.
b. Based solely on the data given, what is the lowest price per taco at which the special order can be filled without reducing
Parkview's profits?
2
Complete this question…
EC 3 Question 3
Hometown Bakery sells three types of doughnuts: glazed, jelly, and cake. The following table shows the sales price and variable costs for each type. The bakery incurs $331,000 a year in fixed expenses. Assume that it sells 3 glazed doughnuts for every 1 jelly doughnut and every 1 cake doughnut.
DOUGHNUT TYPE
SALES PRICE
VARIABLE COST
Glazed
$0.40
$0.29
Jelly
$0.52
$0.49
Cake
$0.47
$0.29
(a)
How many doughnuts of each type will be sold at the breakeven point? (Round intermediate calculations and final answers for the number of doughnuts to the nearest whole, e.g. 5,275.)
Jelly doughnuts
Cake doughnuts
Glazed doughnuts
b. What amount of revenue would need to be generated by each type of doughnut for the company to earn $74,100 in operating income?
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