Question
Academy Press produces textbooks for college courses. The company recently hired a new? editor, Leslie White, to handle production and sales of books for an
Academy Press produces textbooks for college courses. The company recently hired a new? editor, Leslie White, to handle production and sales of books for an introduction to accounting course. Leslie?'s compensation depends on the gross margin associated with sales of this book. Leslie needs to decide how many copies of the book to produce. The following information is available for the fall semester 2013?:
|
| 27,000 Books |
| 29,700 Books |
| 35,100 Books |
|
| Revenues |
|
|
|
|
|
|
| Cost of Goods Sold |
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|
|
|
|
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| Production-Volume Variance |
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|
|
|
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| Net Cost of Goods Sold |
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|
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| 27,000 Books | 29,700 Books | 35,100 Books |
| Beginning Inventory | books | books | books |
| Production |
|
|
|
| Sales |
|
|
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| Ending Inventory | books | books | books |
| Cost Per Book |
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| Cost Per Inventory |
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| 27,000 Books | 29,700 Books | 35,100 Books |
| Gross Margin |
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| Ending Inventory Change |
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| Adjusted Gross Margin |
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One nonfinancial measure is to compute the excess production ratio. Determine the? formula, then compute the ratio at each production level. ?(Round the ratios to two decimal? places.)
| # of books |
| / |
| = | Excess production ratio |
| 27,000 |
| / | = |
| |
| 29,700 |
| / |
| = |
|
| 35,100 |
| / |
| = |
|
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Comparative international accounting
Authors: Christopher nobes, Robert parker
9th Edition
273703579, 978-0273703570
