Question
The entire question is in the Business Environment (11th Edition), chapter 14, Problem 63C. It is a very lengthy question for me to type out.
The entire question is in the Business Environment (11th Edition), chapter 14, Problem 63C. It is a very lengthy question for me to type out. it's here
Loose-Leaf for Managerial Accounting: Creating Value in a Dynamic Business Environment (11th Edition) , chapter 14, problem 63C. specifically question #2.
, The last three lines I need help understanding how to get the numbers for the additional contribution due to change and then get the increase (decrease) in fixed cost and profit or loss
Chapter 14, Problem 63C
| Q | E | R | |
| sales unit | 8000 | 10000 | 5000 |
| sales revenue | 200 | 90 | 180 |
| less variable cost | |||
| material | 31 | 17 | 50 |
| labor | 40 | 20 | 60 |
| overhead | 45 | 30 | 60 |
| shipping expense | 10 | 4 | 10 |
| contribution | 74 | 19 | |
| change in unit sales | 1200 | -5000 | -5000 |
| additional contribution due to change | 88800 | -95000 | |
| (increase) decrease in fixed cost | 80000 | -100000 | 40000 |
| profit or loss | -15000 | -11200 | 40000 |
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
13th Edition
8120335643, 136126634, 978-0136126638
