Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

plz solve C-D i waana C-D Assignment (20%) A. You are given the following information related to ABC manufacturing company Month Budgeted Sales March $200,000

image text in transcribed plz solve C-D
image text in transcribed
i waana C-D
Assignment (20%) A. You are given the following information related to ABC manufacturing company Month Budgeted Sales March $200,000 April 212,000 May 204,000 June 218,000 July 210,000 In addition, the gross profit rate is 40% and the desired inventory level is 30% of next month's cost of sales. Required: Prepare a purchases budget for April through June. B 1. Explain the concept of responsibility accounting and its relation with budgeting. 2. Explain how the choice of the type of responsibility center (cost, revenue, profit, or investment) affects behavior. 3. Discuss the concept of "budgetary slack" Drenning Manufacturing produces flooring material. The monthly fixed costs are $10,000 per month. The unit sales price is $75, and variable cost per unit is $35. Drenning wishes to earn an operating income of $25,000. Using the contribution margin ratio, calculate the total sales revenue that is needed. (Round intermediate calculations to five decimal places.) B 1. Explain the concept of responsibility accounting and its relation with budgeting 2. Explain how the choice of the type of responsibility center (cost, revenue, profit, or investment) affects behavior. 3. Discuss the concept of "budgetary slack" Drenning Manufacturing produces flooring material. The monthly fixed costs are $10,000 per month. The unit sales price is $75, and variable cost per unit is $35. Drenning wishes to earn an operating income of $25,000. Using the contribution margin ratio, calculate the total sales revenue that is needed. (Round intermediate calculations to five decimal places.) D Arthur's Plumbing reported the following: Revenues $4,500 Variable manufacturing costs S 900 Variable nonmanufacturing costs $ 810 Fixed manufacturing costs $ 630 Fixed nonmanufacturing costs $545 Required: a. Compute contribution margin. b Compute contribution margin percentage. c Compute gross margin. d. Compute gross margin percentage. Compute operating income. e

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

Step: 3

blur-text-image

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

Managerial Accounting An Introduction To Concepts Methods And Uses

Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil, Sidney Davidson

7th Edition

0030259630, 978-0030259630

More Books

Students also viewed these Accounting questions