a method in which a products cost is determined by subtracting profit margin from its selling...
a method in which a products cost is determined by subtracting profit margin from its selling price
Homework Answers
Answer- A method in which a products cost is determined by subtracting profit margin from its selling price= Target cost method.
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a method in which a products cost is determined by
subtracting profit margin from its selling...
Determine the gross profit margin for each product produced based on the ABC data [(selling price...
Determine the gross profit margin for each product produced
based on the ABC data [(selling price - ABC cost per unit) x Units
produced]
b.) Determine the gross profit margin for each product produced
based on the traditional costing data [(selling price - traditional
cost per unit) x units produced}
c,) Provide an explanation as to why the cost of OS-367 may have
increased under the ABC system while the cost of GS-157
decreased.
d.) Suggest what action management might...
22. If a company is operating at a profit: A) its contribution margin will not be...
22. If a company is operating at a profit: A) its contribution margin will not be equal to its fixed expenses B) its margin of safety will be equal to zero C) its fixed expenses will be equal to its variable expenses D) its selling price will be equal to its variable expense per unit E) all of the above 23. FrisCo has just purchased a new piece of equipment with the following characteristics: Purchase cost of equipment Annual cost...
XYZ Inc. sells two products, A and B. The selling price, variable cost and contribution margin...
XYZ Inc. sells two products, A and B. The selling price, variable cost and contribution margin per unit of product are shown below: Product A B Selling Price $24 $28 Variable Cost $10 $24 Contribution Margin $14 $4 Fixed costs amount to $640,000. The company sells twice as many units of A as it does B. How many units of each product does the company have to sell to breakeven? Multiple Choice A: 10,000 units; B: 5,000 units. B: 9,000...
Time LimLU.JU.00 Question 1 (1 point) Contribution margin 1) is always the same as gross profit...
Time LimLU.JU.00 Question 1 (1 point) Contribution margin 1) is always the same as gross profit margin. O 2) excludes variable selling costs from its calculation. 3) is calculated by subtracting total manufacturing costs per unit from sales revenue per unit. 4) equals sales revenue minus variable costs. Question 2 (1 point) Contribution margin is 1) the amount of revenue remaining after deducting fixed costs. O2) available to cover fixed costs and contribute to income for the company. 3) sales...
Barlow Company manufactures three products: A, B, and C. The selling price, variable costs, and contribution margin for...
Barlow Company manufactures three products: A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow: Product $280 $400 $360 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin 14 56 21 154 144 213 168200234 $ 112 S20D $126 40% 50% 35% Contribution margin ratio The same raw material is used in all three products. Barlow Company has only 4,300 pounds of raw material on hand...
Contribution Margin, Break-Even Sales, Cost-Volume-Profit Graph, and Operating Leverage Organic Health Care Products Inc. expects to...
Contribution Margin, Break-Even Sales, Cost-Volume-Profit Graph, and Operating Leverage Organic Health Care Products Inc. expects to maintain the same inventories at the end of 2048 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during 2018. A summary report of these estimates...
Segment Margin is the income generated by subtracting: A. only common fixed expenses from a segment’s...
Segment Margin is the income generated by subtracting: A. only common fixed expenses from a segment’s contribution margin B. all fixed expenses from a segment’s contribution margin C. only direct fixed expenses from a segment’s contribution margin D. all expenses from a segment’s sales revenue
Memiman Manufacturing has determined its year-end inventory on a LIFO basis to be $620,000
Memiman Manufacturing has determined its year-end inventory on a LIFO basis to be $620,000 Information pertaining to the inventory is as follows: Selling price $740,000 Costs to sell $39,900 Normal profit margin $90,000 Replacement cost $840,000 What should be the reported value of Merriman's inventory?
Boots and Bags Ltd. reported a gross profit margin of 25% in 2018. Indicate which of...
Boots and Bags Ltd. reported a gross profit margin of 25% in 2018. Indicate which of the following items would result in an increase in the company's gross profit margin in 2019. a. An increase in the number of boots and bags sold. b. A decrease in the commission rate for selling each bag or pair of boots. c. A decrease in the wholesale cost of bags. O d. A decrease in the number of customers paying promptly and not...
Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products...
Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales $1,518,000 Cost of goods sold 683,100 Gross profit $834,900 Administrative expenses 303,600 Income from operations $531,300 The manager of the Consumer Products Division is considering ways to increase the return on investment. a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on...
Determine the gross profit margin for each product produced
based on the ABC data [(selling price - ABC cost per unit) x Units
produced]
b.) Determine the gross profit margin for each product produced
based on the traditional costing data [(selling price - traditional
cost per unit) x units produced}
c,) Provide an explanation as to why the cost of OS-367 may have
increased under the ABC system while the cost of GS-157
decreased.
d.) Suggest what action management might...
22. If a company is operating at a profit: A) its contribution margin will not be equal to its fixed expenses B) its margin of safety will be equal to zero C) its fixed expenses will be equal to its variable expenses D) its selling price will be equal to its variable expense per unit E) all of the above 23. FrisCo has just purchased a new piece of equipment with the following characteristics: Purchase cost of equipment Annual cost...
Time LimLU.JU.00 Question 1 (1 point) Contribution margin 1) is always the same as gross profit margin. O 2) excludes variable selling costs from its calculation. 3) is calculated by subtracting total manufacturing costs per unit from sales revenue per unit. 4) equals sales revenue minus variable costs. Question 2 (1 point) Contribution margin is 1) the amount of revenue remaining after deducting fixed costs. O2) available to cover fixed costs and contribute to income for the company. 3) sales...
Barlow Company manufactures three products: A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow: Product $280 $400 $360 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin 14 56 21 154 144 213 168200234 $ 112 S20D $126 40% 50% 35% Contribution margin ratio The same raw material is used in all three products. Barlow Company has only 4,300 pounds of raw material on hand...
Contribution Margin, Break-Even Sales, Cost-Volume-Profit Graph, and Operating Leverage Organic Health Care Products Inc. expects to maintain the same inventories at the end of 2048 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during 2018. A summary report of these estimates...
Boots and Bags Ltd. reported a gross profit margin of 25% in 2018. Indicate which of the following items would result in an increase in the company's gross profit margin in 2019. a. An increase in the number of boots and bags sold. b. A decrease in the commission rate for selling each bag or pair of boots. c. A decrease in the wholesale cost of bags. O d. A decrease in the number of customers paying promptly and not...
Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales $1,518,000 Cost of goods sold 683,100 Gross profit $834,900 Administrative expenses 303,600 Income from operations $531,300 The manager of the Consumer Products Division is considering ways to increase the return on investment. a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on...
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