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Mountain Press produces textbooks for high school accounting courses. The company recently hired a new editor Morgan Green to handle production and sales of books

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Mountain Press produces textbooks for high school accounting courses. The company recently hired a new editor Morgan Green to handle production and sales of books for an introductory accounting course Morgan's competition depends on the gross marginacciated with sales of this book. Morgan needs to decide how many copies of the book to produce. The following information is available for the full semester 2020 Click the icon to view the Womerion) Morgan has decided to produce either 22.000 27.500. 29,700 books. Read the inte Requirements More info a label 1. Calculate expected gross marginit Morgan produces 22,000, 27.500, or 29,700 books. Make sure you include the production-volume variance as part of cost of goods sold) 2. Calcule ending inventory in units and indoors for each production level 3. Managers who are paid a bonus that is a function of gross main 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 wil accomplish this objective Show your work Incorporate a charge of 5% of the cost of the ending Inventory as an expense for evaluating the manager b. Include no financiers when evaluating management and rewarding performance Estimated sales 22.000 books lleginning inventory books Average polling price $75 per book Variable production coste 349 per book Fixed production costs $528,000 per me The fund-cost location rate is based on expected sales and is therefore equal to $528.000 22.000 books $24 per book

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