a. Total Cost :Total cost is variable cost and fixed cost combined. Variable cost is that cost which is unsettled in nature and is straight correlated with the units of manufacture. If the company produce more the variable cost will go high and if they produce less than the variable cost will be respectively low. Fixed cost is always fixed in nature. Always it is fixed for a year or two and it will change at the longer run. In the short run, fixed cost is constant in nature and it is not related
Fixed cost or expense are variables that are not effected by the change in production or sales. A variable cost or expense is effected directly by a change in production volume or sales. We will categorize our Fixed and variable cost and expenses. First, we have variable data: executive salaries, insurance and property taxes. These items are located on schedule 7 of our Excel analysis. Second we have fixed variables, raw material direct labor, and inventory.
this problem. 11. A company sells seven types of boxes, ranging in volume from 17 to 33 cubic feet. The demand and size for each box type are as the following: Box 1 Size 33 Demand 400 2 30 300 3 26 500 4 24 700 5 19 200 6 18 400 7 17 200 The variable cost (in dollars) of producing each box type is equal to the volume of the box. A fixed
One way Chipotle could approach the increasing food costs would be to develop local sourcing for certain vegetable and meat products. Chipotle could decrease variable food costs by partnering with local farmers and signing exclusive contracts. More than one farmer may be needed in order to serve all of the Chipotle restaurants in a regional area, but overall, this plan would decrease packing, shipping, and gasoline costs associated with transporting products across the country. Chipotle could even
decimal place, some ask you to omit the dollar sign..etc 1. The following monthly budgeted data are available for the International Company: Product C Product J Product R Sales $ 508,000 $ 308,000 $ 904,000 Variable expenses 296,000 204,000 714,000 Contribution margin $ 212,000 $ 104,000 $ 190,000 Budgeted net operating income for the month is $215,000. Required:
2-26 2. Total overtime premium: $20 E 2-29 2. Cost of goods sold: $820,000 E 2-30 (f) $77,000 (o) $110 E 2-31 2. Cost per call, February: $ .27 E 2-33 Annual differential cost: $33,000 P 2-38 2. Cost of goods manufactured: $913,200 P 2-39 Direct material used: $40,000 P 2-40 2. Net income: $168,000 P 2-41 Net income, case A: $110,000 P 2-42 1. a.
to have been reclassified as variable selling costs on page 33? A. The income statement shown on page 33 exclusively shows the contribution margin. This format is used for internal company analysis. Benetton has chosen to show it as a part of annual report. The variable costs (Distribution and Transport costs, Sales commission) are clubbed together. This format is called the contribution format. The income statement on page 50 shows the variable costs and fixed costs more clearly. It has broken
Most of the staff is paid an hourly wage, and these costs are dependent on the size of the health club and the number of hours of operation. The managers of the facility are paid a salary plus a percentage of business revenues. In addition to variable labor costs, there are some facility and equipment expenses that are variable. The major expenses in this category are the utilities. Additionally, equipment is depreciated, retired, and
Use the following to answer question 1: Marger, Inc., provided the following data for two recent months: [pic] |1. |Which of the following classifications best describes the behavior of Cost T? | |A) |Variable | |B) |Fixed
Accounting for Managers Homework Set 2.2 Cost-Volume-Profit and Segment Profitability Analysis 1. Candice Corporation has decided to introduce a new product. The product can be manufactured using either a capital-intensive or labor-intensive method. The manufacturing method will not affect the quality or sales of the product. The estimated manufacturing costs of the two methods are as follows: The company 's market research department has recommended an introductory selling price of $30