2 0 2 0 ( Click the icon to view the information ) Leigh has decided to produce either 1 9 , 0 0 0 , 2 6 , 6 0 0 , or 2 8 , 5 0 0 books Read the requirements do not select a label ) 1 9 , 0 0 0 books Revenues Cost of goods sold Production volume variance Net cost of goods sold Gross margin Requirements Calculate expected gross margin if Angel produces 1 9 , 0 0 0 , 2 6 , 6 0 0 , 2 8 , 5 0 0 books ( Make sure you include the production volume variance as part of cost of goods sold ) Calculate ending inventory in units and in dollars for each production level 3 Managers who are paid a bonus that is a function of gross margin may be inspired to produce a product in excess of demand to maximize their own bonus There are metrics to discourage managers from producing products in excess of demand Do you think the following metrics will accomplish this objective Show your work Incorporate a charge of 1 5 of the cost of the ending inventory as an expense for evaluating the manager b Include nonfinancial measures when evaluating management and rewarding performance NEED TO KNOW Estimated Sales 1 9 , 0 0 0 books, ZERO beginning inventory, Avg selling price per book $ 7 6 , variable production $ 4 6 per book, fixed production $ 3 6 1 , 0 0 0 Fixed cost allocation rate based on expected sales ( 3 6 1 k 1 9 k $ 1 9 per book ) Requirements Calculate expected gross margin if Leigh produces 1 9 , 0 0 0 , 2 6 , 6 0 0 , or 2 8 , 5 0 0 books ( Make sure you include the production volume variance as part of cost of goods sold ) Calculate ending inventory in units and in dollars for each production level Managers who are paid a bonus that is a function of gross margin may be inspired to produce a product in excess of demand to maximize their own bonus There are metrics to discourage managers from producing products in excess of demand Do you think the following metrics will accomplish this objective Show your work a Incorporate a charge of 1 5 of the cost of the ending inventory as an expense for evaluating the manager b Include nonfinancial measures when evaluating management and rewarding performance

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2 0 2 0   ( Click the icon to view the information  ) Leigh has decided to produce either 1 9 , 0 0 0 , 2 6 , 6 0 0 , or 2 8 , 5 0 0 books  Read the requirements  do not select a label  ) 1 9 , 0 0 0 books Revenues Cost of goods sold Production   volume variance Net cost of goods sold Gross margin   Requirements                             Calculate expected gross margin if Angel produces 1 9 , 0 0 0 , 2 6 , 6 0 0 , 2 8 , 5 0 0 books  ( Make sure you include the production   volume variance as part of cost of goods sold  ) Calculate ending inventory in units and in dollars for each production level  3   Managers who are paid a bonus that is a function of gross margin may be inspired to produce a product in excess of demand to maximize their own bonus  There are metrics to discourage managers from producing products in excess of demand  Do you think the following metrics will accomplish this objective  Show your work Incorporate a charge of 1 5   of the cost of the ending inventory as an expense for evaluating the manager  b   Include nonfinancial measures when evaluating management and rewarding performance  NEED TO KNOW                     Estimated Sales 1 9 , 0 0 0 books, ZERO beginning inventory, Avg selling price per book $ 7 6 , variable production $ 4 6 per book, fixed production $ 3 6 1 , 0 0 0   Fixed cost allocation rate based on expected sales ( 3 6 1 k   1 9 k   $ 1 9 per book ) Requirements Calculate expected gross margin if Leigh produces 1 9 , 0 0 0 , 2 6 , 6 0 0 , or 2 8 , 5 0 0 books  ( Make sure you include the production   volume variance as part of cost of goods sold  ) Calculate ending inventory in units and in dollars for each production level  Managers who are paid a bonus that is a function of gross margin may be inspired to produce a product in excess of demand to maximize their own bonus  There are metrics to discourage managers from producing products in excess of demand  Do you think the following metrics will accomplish this objective  Show your work  a   Incorporate a charge of 1 5   of the cost of the ending inventory as an expense for evaluating the manager  b   Include nonfinancial measures when evaluating management and rewarding performance

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2 0 2 0 : ( Click the icon to view the information. ) Leigh has decided to produce either 1 9 , 0 0

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