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Gichal Press probuces textbooks for kigh school accounting courtes. The company recenty hired a new editor, Mshley Green, to handle production and sales of bocks

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Gichal Press probuces textbooks for kigh school accounting courtes. The company recenty hired a new editor, Mshley Green, to handle production and sales of bocks for an introductory wceounting course. Ashiey's compensation depends on the gross margh associated with sales of this book. Astiley neteds to decide how many copies of the book to produce. The folowing information is avallable for the fall semester zozo. Q1 (Click the icon to view the information.) Ashley has decided to groduce either 28,000,35,000, or 40,600 bocta. Read the requirements Requirement 1. Calculate expected gross margin it Ashey produces 28,000; 35,000, of 40,600 books (Make sure you include the production-volume variance as part of cost of goods seid) Calculase the gross margin for each level of production. Begin with 26,000 bocks, then 35.000 books, and lastly 40,600 beoks. (Eetler a "0" for any zero bolance accounts if an account does not heve a varance, do not select a label) More info 1W Score: 2.04%,0.04 of 2 Points: 0 of 1 Green, to handle production ar e how many copies of the book 1. Calculate expecte include the production-volume Requirements 1. Calculate expected gross margin if Ashley 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 metrics 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 rewarding performance

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