Do only part C B). If the cost of manufacturing (direct material and direct labour) is 60%of sales and profit is10% of sales, what would be the improvement in profit if, throughbetter planning andcontrol, the cost of manufacturing was reduced from 60% of sales to55% of sales?Existing ImprovementSales100%Cost of60%manufacturingOther cost30%ProfitC). Using the information in Part A, how much would sales have toincrease to, to provide thesame increase in profits?

C) From the above given information, Cost of manufacturing with direct material and direct labor=…

Answered: B). If the cost of manufacturing…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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Davidson Corp. produces a single product: fireproof safety deposit boxes for home use. The budgetgoing into the current year anticipated a selling price of $55 per unit. Because of competitive pressures, the company had to cut selling prices by 10% during the year. Budgeted variable costs per unitare $32, and budgeted total fixed costs are $156,000 for the year. Anticipated sales volume for theyear was 10,000 units. Actual sales volume was 5% less than budget. (1) What was the sales pricevariance for the year? (Round your answer to the nearest whole dollar.) (2) Label this variance F(favorable) or U (unfavorable), as appropriate
Determine which factor of production is needed in the following problem. 1.The ABM manufacturing Co.hired a gardener.He uses a lawn mower for landscaping.Which factor of production would you consider this machine? 2.The owner of the company withdrew cash for the salaries of thw employees.which factor of production would you consider cash on hand? 3.The top manager of the firm said "the great ideas,consepts and emotional determination of a person to produce something that consumers want to buy" is very important for the company.What factor of production describes the ability to create great ideas? 4.The farmers planted pineapple cutting in the vacant area located in their locality.Which factor of production would you consider a pineapple plantation?
Items Selling Price Per Unit Total Sales quantity Direct Labor Cost Direct Material Cost Other Variable expense Management Salaries Utilities (electricity, water, communications) Advertising Expense (80% Fixed, 20% Variable) Interest Expense Distribution Expense(80% Fixed, 20% Variable) Selling and Commission (90% Fixed and 10% Variable) *Taxes (annual) Note: Total tax annually * Unit OMR units or pcs OMR OMR OMR OMR OMR OMR OMR OMR OMR OMR Amount 340 2,852,600 8,390 64,210 1,158,200 1,510 32,990 14,750 140,880 1,600 42,480 11,300
20 - What is the positive difference that occurs by subtracting the total expenses incurred from the total revenues of the business? a) Snow B) Investment NS) Growth D) Capital TO) Damage
Revenue and expense data for Bluestem Company are as follows: Year 2 Year 1 Administrative expenses $ 37,000 $ 20,000 Cost of goods sold 350,000 320,000 Income tax expense 40,000 32,000 Sales 800,000 700,000 Selling expenses 150,000 110,000 (a) Prepare a comparative income statement, with vertical analysis, stating each item for both years as a percent of sales. (b) Comment upon significant changes disclosed by the comparative income statement. Round percentages to one decimal place.
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Please Help I am confused. Classifying Costs The following is a list of costs that were incurred in the production and sale of large commercial airplanes: Classify each cost as either a product cost or a period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Costs Classification a. Annual bonus paid to the chief operating officer of the company b. Annual fee to a celebrity to promote the aircraft c. Cost of electronic guidance system installed in the airplane cockpit d. Cost of electrical wiring throughout the airplane e. Cost of miniature replicas of the airplane used to promote and market the airplane f. Cost of normal scrap from production of airplane body g. Cost of paving the headquarters employee parking lot h. Decals for cockpit door, the cost of which is immaterial to the cost of the…

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