Acaderny Press produces toodbooks for high schocl accounting coursas. The company recently hired a new editor, Fran Green, to handle production and sales of books for an introductory acoounting course. Fran's compensation depends on the gross margin assoctated with sales of this beok. Fran needs to decide how many copies of the book to produce. The following information is avaitable for the fall semester 2020 . 2. (Click the icon to vicw the information.) Fran has decided to produce either 28,000,35,000, or 40,600 bocks. Read the reguitumerts Requirement 1. Calculate expected gross margin if Fran produces 28,000, 35,000, or 40,600 books. (Make sure you include the production-volume variance as part of cost of goods sold.) Calculate the gross margn for each level of production. Begin wth 28,000 books, then 35,000 books, and lastly 40 , e00 backs (Enter a "O* far any zero bulance acoounts. If an account does not have a variance, do not select a label.) Acaderry Press produces textbooks for high school acoounting courses. The comparyy recently hired a new ecltor, Fran Green, to handle producticn and eales of books for an introductory accounting course. Fran's compensation depends on the gross margin associated with sales of this bock. Fran needs to decide how many copios of the book to produce. The following information is available for the fall semester 2020 2. (Click the icon to view the information) Fran has decided to produce either 28,000,35,000, or 40,600 bociks Read the requirements: balance accounts, If an account does not have a variacice, do not select a label.) Academy Press produces textbooks for high school accounting courses. The company recently hired a new editor, Fran Green, fo handle production and sales of books for an introductory accounting course. Fran's compensation depends on the gross margin associated with sales of this book. Fran needs to decide how manv copies of the book to produce. The. followina information is available for the fall semester 2020: Fran has dec More info Academy Press produces textbooks for high school accounting courses. The company recently hired a new editor, Fran Green, to handle production ar sales of books for an introductory accounting course. Fran's compensation depends on the gross margin associated with sales of this book. Fran need decide how manu conies of the bookito oroduce. The followinginformation is available for the fall semester 2020; Requirements 1. Calculate expected gross margin if Fran produces 28,000,35,000, or 40,600 books. (Make sure you include the production-volume variance as part of cost of goods sold.) 2. 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 motrics will accomplish this objective? Show your work. a. Incorporate a charge of 5% of the cost of the ending inventory as an expense for evaluating the manager. b. Include nonfinancial measures when evaluating management and rowarding performance
