Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please solve 1-4 in detail please solve 1-3 in only 3-34. could you please tell why you solved the problem like that Chapter 2 An

please solve 1-4 in detail image text in transcribed
please solve 1-3 in only 3-34.
could you please tell why you solved the problem like that image text in transcribed
image text in transcribed
Chapter 2 An Introduction to Cost Terms and Purposes Function Representative Cost Driver 1. Accounting 2. Human resources 3. Data processing 4. Research and development 5. Purchasing 6. Distribution 7. Billing A. Number of invoices sent B. Number of purchase orders C. Number of research scientists D. Hours of computer processing unit (CPU) E. Number of employees F Number of transactions processed G. Number of deliveries made Required 1. Match each function with its representative cost driver. 2. Give a second example of a cost driver for each function. 2-21 Total costs and unit costs. A student association has hired a band and a caterer for a graduation party. The band will charge a fixed fee of $2,000 for an evening of music, and the caterer will charge a fixed fee of $1,200 for the party setup and an additional $18 per person who attends. The caterer will provide snacks and soft drinks for the duration of the party. Students attending the party will pay $10 each at the door to help reduce the student association's cost of holding the event. Required 1. Draw a graph depicting the fixed cost, the variable cost, and the total cost to the student association for different attendance levels. 2 Suppose 100 people attend the party. What is the total cost to the student association? What is the cost per person? 3. Suppose 500 people attend the party. What is the total cost to the student association and the cost per attendee? 4. Draw a graph depicting the cost per attendee for different attendance levels. As president of the student association, you want to request a grant to cover some of the party costs. Will you use the per attendee cost numbers to make your case? Why or why not? com $1.750.000. The shown here. Diem Corporation Income Statement For the Year Ended December 31, 2012 Using Sales Agents Using Own Sales Force $35,000,000 $35,000,000 Revertes Cost of goods sold Variable Fixed Gross margin Marketing costs Commissions $19,250,000 4.750,000 $19,250,000 4,750,000 24,000,000 11,000,000 24.000.000 11.000.000 Fred 7,000,000 1,450,000 5,250,000 3.200.000 8,450,000 $ 2,550,000 Operating income 8.450,000 $ 2,550,000 Required 1. Calculate Diem's 2012 contribution margin percentage breakeven revenues, and degree of operating leverage under the two scenarios 2. Describe the advantages and disadvantages of each type of sales alternative. In 2013, Diem uses its own salespeople, who demand an 18% commission. If all other cost behavior at terns are unchanged, how much revenue must the salespeople generate in order to earn the same operating Income as in 2012? 3-34 Multiproduct CVP and decision making. JumpUP Inc. produces two types of trampolines. One is smaller and is primarily used in gyms for exercise classes. The other is a larger model designed for recreational use. The smaller trampoline sells for $200 and has variable costs of $120. The larger trampoline sells for $600 and has variable costs of $420, JumpUP sells four smaller models for every one larger model sold. Fixed costs equal $1,250,000 1. What is the breakeven point in unit sales and dollars for each type of trampoline at the current sales mix? Required ned and presented the fo the following Assignment M this significantly reduced price and variable cost per unit moup is considering buying new production equipment. The new equiment will increase foed cont by 4902.000 per year and will decrease the variable cost of the small and large trampolines by $15 and 545, respectively. Assuming the same sales mix, how many of each type of trampoline does JumpUP need to sell to break even? Assuming the same sales mix, at what total sales level would jumoUP be indifferent between using the old equipment and buying the new production equipment? if total sales are expected to be 13,000 units, should JumpUP buy the new production equipment? ect materials. The selling price remainder of the year. t per unit will be unchanged 3.35 Sales mix, two products. The Wharton Company retails two products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is as follows: umber of units that Skudder Standard Carrier me objective. Show your Deluxe Carrier 60,000 180,000 Units sold $5,400,000 4,320,000 $1,080,000 $2,280,000 1,680,000 $ 600,000 ating leverage. th a network of external ing replacing the sales and total salaries of wo scenarios is Revenues at $30 and $38 per unit Variable costs at $24 and $28 per unit Contribution margins at $6 and $10 per unit Fixed costs Operating income 1. Compute the breakeven point in units, assuming that the company achieves its planned sales mix. - in unite al if only standard carriers are sold and (b) if only deluxe

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Karen Bird, Gene Imhoff

3rd Edition

0984200541, 9780984200542

More Books

Students also viewed these Accounting questions

Question

11.1 Explain the strategic importance of total rewards.

Answered: 1 week ago

Question

11.3 Define pay equity and explain its importance today.

Answered: 1 week ago