Requirement 1. The staring point of your analyas ia so determine product profitabitiy inder the eriasng cost accoumsng syasam. Compute the operating income and the operating income as a percert of sales for each depart assest the relative profiabilty per euro of sales of each of the three deparmerts. Start by cetemining the formula neoded to compute indirect cost rabes, then enter the amount to calculabe the indirect cost rate under the compary's enisting cost system. (Round the rabe oo two decimal places, XCX. Use the infomation o a asess the redative proftabilicy per euro of swes of each of the three departments. Now compuse the operating income and the operasng income as a peroemt of sales for each department using the actirity-based data. (Complate all answer bowes. Use a minus sign or parentheses to show an ope Requirement 3. Propose a strabegy for eppansion. Which infomation, that based on the cument costing systom or that based on the activity-backed costing system, is most isk reoommendation on an exparsion stratogy? The 7 syshem is genenaly mere aocurate because t betwer alooates coas on a causectect basis. The 7 department uses more support activibes (pelative to its sakes) than the other departments, thus it eauses of the support costs. The T cons to the departmert Based on the cosa alocabed uncer this system, Bonpreu should considering exparding the What adcisoral informason would you fice oo have before making a more definitre recommendation on an exparsian strateqy? Selest which addtional piece(s) of imformation is(are) reoded to assist in making the best expansion decision: A. Opporturibes for re-engineering. The activty-bassed costing numbers previde costa for providing each type of suppont activily. It wi. heip determine whether these activities are warth their cost or if ary of them might be acoomplished more aficienty. The high eos: of departmert. 9. Fioed and variable costs. Even the activity-based eoating system alocnoes all cosis on a per unik basis. Fioed eosas are not separnbed conr bution margin oanrot be ceterminge This may be ok for long-oem stratogic cectaions, however, it wi. not provide a shont-tem prediction of the efoct of the exparsion. C. Product irteractons. Wil increased (or decreased) space for one department afect the swes of arother department? D. Capacty usizabion by each department. For exparsian decisions, management should first expard the cepartment that gives the: highest eartribution margin per square foot (or per linear shef foot or other capwcty measure) E. Market demand. The activiby-based costs oan be used to estimaxe the impact of dflenent sales levela, but we noed oo know how much Manket cemand. The aicinily-tased costs onn be ussd to estimase the impoact added sales wil sesalt from the expansion of eapacily in each deparment 7. All of the above. Requirement 1. The starting point of your aralyais ia oo determine product profiabilty under the eniasing cost aceounsing syasem. Compute the operating income and the operating income as a percert of sales for each department using Bonpreu's existing system. Use this inbomation so assesd the relative profiabilty per euro of sales of each of the three deparzmerts. Start by cetermiring the formula needed to compute indirect cost rabes, then enter the amount to calculabe the incirect coes fate under the compary's exibtirg eost system. (Round the rabe so two decimal places, JCX.) Total ind rect suppor? = Indirect cost alocaton fate = Now ocmpuse the operating income and the operashg income as a peroent of sales for each department using Borpred's existirg syshem. (Use a mirus sign or parertheses to show an operating loss or an operabing loss as a percert of sales. Round the operating income (ooss) as a percert of eales to bwo docimal places, x%.) Use the infomation so iasess the folative proftwbilicy per euro of sades of tach of the three departmente. Under the exsting coat system the department appears to be the moat prof table relative oo the amount of sales from that department and the department appears to be the least profitabie selative to the amourts of aales. Requirement 2. Using these data and activity-based costing, oakculabe the operatirg inoome and operabing income as a percent of aales for each product. FFor example, note that dach purchatse order oosts 6109.620f6,090=41.5 to process.) Begin by decemining the indirect cost rabe per actvity using the same fomula labets as you ceteminod in foguirement 1 . The calkulason of the indivect cost rase to alloate ordering costs [the cost per porchase onder) has been given bo you as an example. [Round the rase to bed docimal places,. OOC.] Now ocmpuse the operating income and the operafng income as a peroent of sales for each department usirg the activity-based daba. (Complete all answer bowes. Use a minus sign or parentheses to show an operating losd or an operating losd as a percent of sales. Round the operating inceme (loas) ias a peroent of sades 00 two decimal ploces, XK. What addisoral informason would you like oo have before makirg a more definitiee recommerdation on an exparsion strategy? Belost which add tional pioce[s] of information is(are) needed to asaist in making the best exparsion decision: 2. Opporturibes for re-trgineering. The activity-backed costing numbers proride costa for providing each type of support activity. It will help determire whether these actives ares warth thair coat or if ary of them might be acoomplishod more efficierty. The high eoria of activises for the produce degartment might be roduced by re-engineering the proceises, thereby increasing the proftabilty of the Requirement 1. The starting point of your analyas is oo determine product profiabity under the enising cost aceounsng syasem. Compute the operating inoome and the operating income as a pereert of sales for each department using Bonpreu's existing system. Use this infomation so assest the relative profiabilty per euro of sales of each of the three deparments. start by cetemining the formula needed to compute indirect cost rabes, then enoer the amount to cakculabe the indirect cost fate under the compary's eristing eost system. (Round the rabe oo two decimal ploces, JCX.) Now compuse the operating ineome and the opernfmy income as a peroent of sales for each departmemt using Bonpreu's exsting syshem. (Use a minus sign or parentheses to show an operating losa or an operabng loss as a pereert of sales. Round the operating income (loss) as a percert of sales to twa docimal places, X.0xF.) Use the information os asess the relative proftubiliy per eura of sades of tach of the three departments. Under the exsting east system the department appears to be the moat proft tabe relative to the amount of sales from that department and the department apgears to be the least profiabie sedatien to the amourts of sales. Requirement 2. Using these data and activity-based costing, oalceluot the operating inoome and operating income as a percent of sales for each product. (For example, note that exch purchase order oosts E109,e20 6,090= ets to proces.) Begin by detemining the indrect cost rabe per acfvity using the same formula labels as you ceteminod in roquirement 1 . The calculason of the indivect cost rase to alooate ondering costs (the cost per purchase onder) has been given to you as an example. (Round the rase to two docimal places, . XOC.] Requirement 1. The starting point of your aralyais ta do determine product pofiabilty under the enising cost accoumsng syasem. Computs the operating income and the operating income as a pereert of sales for each department using Bonpreu's existing system. Use this infomation oo assesa the relative profiabilty per euro of sales of ench of the three deparments. Start by cetemining the formula needed to compute indirect cost notes, then enter the amount to caleulane the incirect cost fate under the company's eribting eost system. (Round the rabe oo two decimal places, JcX.) longred's exsting syshem. (Use grating ineome (loss) as a Use the imformation so assess the redative proftubiliy per eura of saies of each of the three departmentes. Under the exsting eoat aystem the department appears to be the moat prof table relative so the amoumt of sales from that department and the department apgears to be the least profiabie selatioe to the amourts of sales. Requirement 2. Using these data and activity-based costing, olculate the operating income and operating income as a percent of sales for each product. FFor example, note that each purchase order costs 6109.620s6,090=18 to proces. Beqin by desemining the indrect cost rabe per acsvity using the same formula labets as you cetemingd in resuirememt 1 . The caleulason of the Data table Requirement 1. The staring point of your analyas ia so determine product profitabitiy inder the eriasng cost accoumsng syasam. Compute the operating income and the operating income as a percert of sales for each depart assest the relative profiabilty per euro of sales of each of the three deparmerts. Start by cetemining the formula neoded to compute indirect cost rabes, then enter the amount to calculabe the indirect cost rate under the compary's enisting cost system. (Round the rabe oo two decimal places, XCX. Use the infomation o a asess the redative proftabilicy per euro of swes of each of the three departments. Now compuse the operating income and the operasng income as a peroemt of sales for each department using the actirity-based data. (Complate all answer bowes. Use a minus sign or parentheses to show an ope Requirement 3. Propose a strabegy for eppansion. Which infomation, that based on the cument costing systom or that based on the activity-backed costing system, is most isk reoommendation on an exparsion stratogy? The 7 syshem is genenaly mere aocurate because t betwer alooates coas on a causectect basis. The 7 department uses more support activibes (pelative to its sakes) than the other departments, thus it eauses of the support costs. The T cons to the departmert Based on the cosa alocabed uncer this system, Bonpreu should considering exparding the What adcisoral informason would you fice oo have before making a more definitre recommendation on an exparsian strateqy? Selest which addtional piece(s) of imformation is(are) reoded to assist in making the best expansion decision: A. Opporturibes for re-engineering. The activty-bassed costing numbers previde costa for providing each type of suppont activily. It wi. heip determine whether these activities are warth their cost or if ary of them might be acoomplished more aficienty. The high eos: of departmert. 9. Fioed and variable costs. Even the activity-based eoating system alocnoes all cosis on a per unik basis. Fioed eosas are not separnbed conr bution margin oanrot be ceterminge This may be ok for long-oem stratogic cectaions, however, it wi. not provide a shont-tem prediction of the efoct of the exparsion. C. Product irteractons. Wil increased (or decreased) space for one department afect the swes of arother department? D. Capacty usizabion by each department. For exparsian decisions, management should first expard the cepartment that gives the: highest eartribution margin per square foot (or per linear shef foot or other capwcty measure) E. Market demand. The activiby-based costs oan be used to estimaxe the impact of dflenent sales levela, but we noed oo know how much Manket cemand. The aicinily-tased costs onn be ussd to estimase the impoact added sales wil sesalt from the expansion of eapacily in each deparment 7. All of the above. Requirement 1. The starting point of your aralyais ia oo determine product profiabilty under the eniasing cost aceounsing syasem. Compute the operating income and the operating income as a percert of sales for each department using Bonpreu's existing system. Use this inbomation so assesd the relative profiabilty per euro of sales of each of the three deparzmerts. Start by cetermiring the formula needed to compute indirect cost rabes, then enter the amount to calculabe the incirect coes fate under the compary's exibtirg eost system. (Round the rabe so two decimal places, JCX.) Total ind rect suppor? = Indirect cost alocaton fate = Now ocmpuse the operating income and the operashg income as a peroent of sales for each department using Borpred's existirg syshem. (Use a mirus sign or parertheses to show an operating loss or an operabing loss as a percert of sales. Round the operating income (ooss) as a percert of eales to bwo docimal places, x%.) Use the infomation so iasess the folative proftwbilicy per euro of sades of tach of the three departmente. Under the exsting coat system the department appears to be the moat prof table relative oo the amount of sales from that department and the department appears to be the least profitabie selative to the amourts of aales. Requirement 2. Using these data and activity-based costing, oakculabe the operatirg inoome and operabing income as a percent of aales for each product. FFor example, note that dach purchatse order oosts 6109.620f6,090=41.5 to process.) Begin by decemining the indirect cost rabe per actvity using the same fomula labets as you ceteminod in foguirement 1 . The calkulason of the indivect cost rase to alloate ordering costs [the cost per porchase onder) has been given bo you as an example. [Round the rase to bed docimal places,. OOC.] Now ocmpuse the operating income and the operafng income as a peroent of sales for each department usirg the activity-based daba. (Complete all answer bowes. Use a minus sign or parentheses to show an operating losd or an operating losd as a percent of sales. Round the operating inceme (loas) ias a peroent of sades 00 two decimal ploces, XK. What addisoral informason would you like oo have before makirg a more definitiee recommerdation on an exparsion strategy? Belost which add tional pioce[s] of information is(are) needed to asaist in making the best exparsion decision: 2. Opporturibes for re-trgineering. The activity-backed costing numbers proride costa for providing each type of support activity. It will help determire whether these actives ares warth thair coat or if ary of them might be acoomplishod more efficierty. The high eoria of activises for the produce degartment might be roduced by re-engineering the proceises, thereby increasing the proftabilty of the Requirement 1. The starting point of your analyas is oo determine product profiabity under the enising cost aceounsng syasem. Compute the operating inoome and the operating income as a pereert of sales for each department using Bonpreu's existing system. Use this infomation so assest the relative profiabilty per euro of sales of each of the three deparments. start by cetemining the formula needed to compute indirect cost rabes, then enoer the amount to cakculabe the indirect cost fate under the compary's eristing eost system. (Round the rabe oo two decimal ploces, JCX.) Now compuse the operating ineome and the opernfmy income as a peroent of sales for each departmemt using Bonpreu's exsting syshem. (Use a minus sign or parentheses to show an operating losa or an operabng loss as a pereert of sales. Round the operating income (loss) as a percert of sales to twa docimal places, X.0xF.) Use the information os asess the relative proftubiliy per eura of sades of tach of the three departments. Under the exsting east system the department appears to be the moat proft tabe relative to the amount of sales from that department and the department apgears to be the least profiabie sedatien to the amourts of sales. Requirement 2. Using these data and activity-based costing, oalceluot the operating inoome and operating income as a percent of sales for each product. (For example, note that exch purchase order oosts E109,e20 6,090= ets to proces.) Begin by detemining the indrect cost rabe per acfvity using the same formula labels as you ceteminod in roquirement 1 . The calculason of the indivect cost rase to alooate ondering costs (the cost per purchase onder) has been given to you as an example. (Round the rase to two docimal places, . XOC.] Requirement 1. The starting point of your aralyais ta do determine product pofiabilty under the enising cost accoumsng syasem. Computs the operating income and the operating income as a pereert of sales for each department using Bonpreu's existing system. Use this infomation oo assesa the relative profiabilty per euro of sales of ench of the three deparments. Start by cetemining the formula needed to compute indirect cost notes, then enter the amount to caleulane the incirect cost fate under the company's eribting eost system. (Round the rabe oo two decimal places, JcX.) longred's exsting syshem. (Use grating ineome (loss) as a Use the imformation so assess the redative proftubiliy per eura of saies of each of the three departmentes. Under the exsting eoat aystem the department appears to be the moat prof table relative so the amoumt of sales from that department and the department apgears to be the least profiabie selatioe to the amourts of sales. Requirement 2. Using these data and activity-based costing, olculate the operating income and operating income as a percent of sales for each product. FFor example, note that each purchase order costs 6109.620s6,090=18 to proces. Beqin by desemining the indrect cost rabe per acsvity using the same formula labets as you cetemingd in resuirememt 1 . The caleulason of the Data table