Fixed cost

company is considering the following alternatives: Alternative 1 Alternative 2 Revenues $120,000 $120,000 Variable Costs $60,000 $60,000 Fixed Costs $35,000 $35,000 Which of the following are relevant in choosing between the alternatives? 2.) Adler Company manufactures a product with the following costs: Unit Variable Cost $50 Unit Fixed Cost $24 Total Cost Per unit $74 The company normally sells 10,000 units at a price of $88 each. Adler has a one-time opportunity to sell an additional

                                            89,000 Direct material cost                                                                      54,500 Direct labor cost                                                                           66,000 Manufacturing overhead                                                                 21,400 Sales                                                                                        385,000   Prepare a schedule of cost of goods manufactured. | |   | Student Answer:

Quiz 2 1) Cost-volume-profit analysis is used primarily by management: A) as a planning tool B) for control purposes C) to prepare external financial statements D) to attain accurate financial results Answer: A Diff: 1 Terms: cost-volume-profit (CVP) Objective: 1 AACSB: Communication 2) One of the first steps to take when using CVP analysis to help make decisions is: A) finding out where the total costs line intersects with the total revenues line on a graph. B) identifying which costs are variable

QUESTION 2: If EasyFind's variable costs are $10 per dozen, what is their total contribution each month at current prices? ($19 - 10) * 5,470 = $49,230 [+/- $1,477] Total contribution = Unit Contribution * units sold QUESTION 3: What will be EasyFind's new price if they choose to implement the price

your conclusions): 1. Cost a) Cost of Production: Cost of production is costs incurred by Albatross Anchor when manufacturing an anchor. There are two types of costs – fixed and variable. Variable costs depend on what materials and labor are needed to make the anchor and vary with the volume of anchors produced. Fixed costs, such as rent or utilities, are always constant no matter how many anchors are produced (Russell & Taylor, 2011, p. 230). Manufacturing costs are $8.00 per pound for

Bridgestone Behavioral Health Center: Cost-Volume-Profit (CVP) Analysis INTRODUCTION In June of the current year Dr. Thomas Russell, Executive Director, and Susan Smyth, Accountant, at the Bridgestone Behavioral Health Center were discussing the necessity of gaining a better understanding of how to monitor the Center’s operating and financial performance. Located in Cleveland, Ohio, Bridgestone provides prevention, intervention, and treatment services for individuals with substance abuse problems

ACC2131 Cost Information for Decision Making Week 3 (Chapter 2) Tutorial Solutions Semester 1, 2015 Note to students: Beware! These solutions are not necessarily model answers. In exams, you will not have demonstrated your understanding of the answers to these exercises if you seek only to memorise them. You are encouraged to use tutorial time to discuss issues that will test and clarify your understanding of these exercises, as well as expanding your analytical and critical-thinking skills. 2.5

Expenses: $28.70(variable cost) x (205 hours + 97 hours) = $8,667.40 Subtracting expenses from Revenue yields a net income of $170,332.60 Change in net income = $170,332.60 – $212,939 = -$42,606 Option 2: We pull 138 commercial revenue hours from March Exhibit 1. Multiplying that by 130%, we come up with 180 hours. New revenue hours = 138 hours x (1+0.3) = 180 hours Revenue = (205 hours x $400) + (180 hours x $600) = $82,000 + $108,000 = $190,000 Expenses = $28.70(variable cost) x (205 hours + 180

SRATC curve at output level below point Q* is determined by the fixed component of total cost. Then bigger/smaller fixed cost is then SRATC curve will be more/less steeper (“F/S” shapes). High fixed costs causes that business is much more vulnerable to any kind of external shock on the market. Variable labour cost also has influence on the steepness of the SRATC curve especially when a business benefits from IRL. IRL reduces variable cost as output increases and this makes the SRATC curve steeper where

Activity Based Costing (ABC) focuses on multiple activities in manufacturing; more precisely attributes activity costs to production and identifies idle capacity costs for each activity. Like traditional cost system, activity based costing uses a two stage approach, a more general in terms of cost centers, but uses an activity based approach for accumulating costs. The activity based cost system starts by asking what are being performed by the service department’s resources. The resource expenses are