Question

You are the manager of a responsibility center which manufactures and sells car gears for automobile plants. Your selling and manufacturing cost structure as follows: Production and sales: 10,000 units Selling price per gear: $20 Variable Costs: $8/unit of output Manufacturing overhead: $50,000 Administrative and Marketing Expenses: $10,000 Total Asset: $100,000 Cost of capital: 10% Which of the following is the true calculation of RI (residual income) for the company? Lutfen birini seçin 3 200.000-80,000-50,000-80.000 D 60.000-(100,000x10=50,000 80.000-50.000-30.000 0.200.000-80.000X10-13.000

Answer 1

Ansura unit = Variabe cest per unit Sales price per $20 $8 Total Asads= $100 cost of capital = 10% manufacturing off Administration and marketing $50,000 $10,000 Exponse Residual Income foIT (-) Cost of capital (x3 Total Apsets Computation of EBIT Sales (10,000 units ( $20) Variable cast (10,000 units (x2 & 8) Contribution fixed costs (S0,000 $30,000) ERIT 200000 (80,000) 120,000 (60,000) $60,000 Residual Income = $60,0001- lovo looooo $50, o Hence the correct answer is (8) 60,000(-) (loowomalov.)= $50,000 CS Scanned with CamScanner