Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Question
Chapter 11, Problem 6E
a)
To determine
Fill the missing elements in the given table
b)
To determine
The reason for the decrease of total cost of trophy as the number of trophies increases.
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Exercise 11-6A (Algo) Fixed versus variable cost behavior LO 11-1, 11-2
Baird Trophies makes and sells trophies it distributes to little league ballplayers. The company normally produces and sells between
5,000 and 11,000 trophies per year. The following cost data apply to various activity levels.
Required
Complete the preceding table by filling in the missing amounts for the levels of activity shown in the first row of the table. (Round your
intermediate calculations and per unit amounts to 2 decimal places.)
Number of Trophies
5,000
7,000
9,000
11,000
Total costs incurred
Fixed
$
56,000
Variable
42,000
Total costs
98,000
Cost per unit
Fixed
$
11.20
Variable
8.40
Total cost per trophy
$
19.60
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Question 3 Part II The Advent Corporation also manufactures chairs and tables at one of their divisions. The following isdata for its chair manufacturing department for the month of February.Actual Sales 4,500 ChairsSelling Price $60.00 per chairVariable Costs $15.00 per chairFixed Costs $72,000
Required:a. Calculate the Contribution Margin per chair. b. Compute the Contribution Margin Ratio. c. Determine the break-even point in revenue dollars. d. Calculate the Margin of Safety in revenue dollars. e. If the company wishes to increase its total dollar contribution margin by 50% in March, by how muchwill it have to increase sales, in units, if all factors remain the same?
Exercise 2-6A (Algo) Fixed versus variable cost behavior LO 2-1
Franklin Trophies makes and sells trophies it distributes to little league ballplayers. The company normally produces and sells between
4,000 and 10,000 trophies per year. The following cost data apply to various activity levels:
Required
Complete the preceding table by filling in the missing amounts for the levels of activity shown in the first row of the table. (Round
"Cost per unit" answers to 2 decimal places.)
Number of Trophies
Total costs incurred
Fixed
Variable
Total costs
Cost per unit
Fixed
Variable
Total cost per trophy
$ 74,000
42,000
$ 116,000
$
4,000
$
18.50
10.50
29.00
6,000
8,000
10,000
Chapter 11 Solutions
Survey Of Accounting
Ch. 11 - 1.Define fixed cost and variable cost and give an...Ch. 11 - Prob. 2QCh. 11 - 3.Define the term operating leverage and explain...Ch. 11 - Prob. 4QCh. 11 - Prob. 5QCh. 11 - 6.If volume is increasing, would a company benefit...Ch. 11 - Explain the risk and rewards to a company that...Ch. 11 - 9.Are companies with predominately fixed cost...Ch. 11 - 10.How is the relevant range of activity related...Ch. 11 - Which cost structure has the greater risk?...
Ch. 11 - 14.The president of Bright Corporation tells you...Ch. 11 - Prob. 12QCh. 11 - Prob. 13QCh. 11 - Prob. 14QCh. 11 - Prob. 15QCh. 11 - Prob. 16QCh. 11 - Prob. 17QCh. 11 - Prob. 1ECh. 11 - Prob. 2ECh. 11 - Prob. 3ECh. 11 - Exercise 2-4A Determining total variable cost The...Ch. 11 - Prob. 5ECh. 11 - Prob. 6ECh. 11 - Prob. 7ECh. 11 - Prob. 8ECh. 11 - Prob. 9ECh. 11 - Prob. 10ECh. 11 - Prob. 11ECh. 11 - Prob. 12ECh. 11 - Prepare an income statement using the contribution...Ch. 11 - Prob. 14ECh. 11 - Prob. 15ECh. 11 - Prob. 16ECh. 11 - Prob. 17ECh. 11 - Prob. 18ECh. 11 - Prob. 19ECh. 11 - Prob. 20ECh. 11 - Prob. 21PCh. 11 - Prob. 22PCh. 11 - Problem 2-19A Context-sensitive nature of cost...Ch. 11 - Prob. 24PCh. 11 - Prob. 25PCh. 11 - Prob. 26PCh. 11 - Prob. 27PCh. 11 - Prob. 28PCh. 11 - Prob. 29PCh. 11 - Prob. 1ATCCh. 11 - Prob. 2ATCCh. 11 - Prob. 3ATCCh. 11 - Prob. 4ATCCh. 11 - Prob. 5ATC
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