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D D. participative budgeting. profit planning. common sense. control budgeting downsizing. Patne Company manufactures controls that are used in its manufacturing of air conditioners. The
D D. participative budgeting. profit planning. common sense. control budgeting downsizing. Patne Company manufactures controls that are used in its manufacturing of air conditioners. The controls can be purchased from another firm for $35 each. The controls cost Payne $40 per unit to produce, of which 15 percent is allocated fixed overhead cost. To analyze a make/buy decision for these controls, the relevant cost comparison is $40 and $35, and the controls should be purchased. $40 and $35, and the controls should be manufactured. $35 and $34, and the controls should be purchased. $35 and $34, and the controls should be manufactured. None of the answers above is correct. A "Customer Profitability Analysis" refers to the process of determining Which of our customers are earning a solid profit and therefore will be able to pay their invoices on a timely basis? Which divisions of our company are earning the most profit? Which of our customers are providing our firm the most profit or loss? What can we do to ensure that our customers earn an acceptable profit? None of the answers above is correct. This year Raymond Manufacturing shipped 1,500,000 pounds of products customers at a cost of $1,200,000. If Customer Jones purchased 10,000 pounds of product generating $200,000 of revenue for Raymond Manufacturing, the mount of shipping cost that Acme should be assigned using the ABC approach is unable to determine form the data. $8,000 ($0.80 per pound shipped). $24,000 (2% of the total shipping costs). $12,000 (1% of the shipping cost). None of the answers above is correct.
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