estion list K Acaderria Pross produces textbooks for high school accounting courses. The company recently hired a new editor, Leigh Green, to handle production and sales of books for an introductory accounting course. Leigh's compensation depends on the gross margin associated with sales of this book. Leigh noods to decide how many copies of the book to produce. The following information is available for the fall semester 2020 : (1) (Click the icon to view the information.) Question 1 Leigh has decided to produce either 29,000,37,700, or 43,500 books. Read the requirements. Question 2 Requirement 1. Calculate expected gross margin if Leigh produces 29,000, 37,700, or 43,500 books. (Make sure you include the production-volume variance as part of cost of goods sold.) Question 3 Calculate the gross margin for each level of production. Begin with 29,000 books, then 37,700 books, and lastly 43,500 books. (Enter a "0* for any zero balance accounts. If an account Question Viewn have a variance, do not seloct a labol.) Question 4 Question 5 Requirements 1. Calculate expected gross margin if Leigh produces 29,000,37,700, or 43,500 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 tonus that is a function of gross margin may be inspired to produce a product in excess of demand to maximize thoir 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. Incorparate a charge of 10% of the cost of the ending inventory as an expense for evaluating the manager. b. Include nonfinancial measures when evaluating management and rewarding performance. the gross margin associated with sales of this book. Loigh noeds to decide how many copies of the book to produce. The following information is available for the fall semester 2020 : '(Click the icon to view the information.) Leigh has docided to produce either 29,000,37,700, or 43,500 books. Read the requirements 2. Requirement 1. Calculate expected gross margin if Leigh produces 29,000,37,700, or 43,500 books. (Make sure you include the production-volume variance as part of cost of goods sold.) excess of demand. Do you think the following metrics will accompilsh this objective? Show your work. a. Incorporate a charge of 10% of the cost of the ending inventory as an expense for evaluating the manager. (Complote all input fields. For a so change, make sure to enter "0" in the appropriate celi.) excess of demand. Do you think the following metrics wil accomplish this objective? Show your work. a. Incorporate a charge of 10% of the cost of the ending inventory as an expense for evalualing the managor. (Complete all input fields. For a $0 change, make sure to enter "0* in the appropriate cell.) Do you think the metric would accomplish the objective of discouraging managers from producing products in excoss of demand? Adjusting for ending inventory (4) mitigate the increase in inventory associated with excess production. Therefore, it may be (5) to mechanically compensate for all of the increased incorne. In addition, it (6) from the organization's standpoint. b. Include nonfinancial measures when evaluating management and rewarding performanco. One nonfinancial measure is to compute the excess production matio. Determine the formula, then compute the ratio at each production level. (Round the ratios to two decimal places.)
