Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Chapter 8, Problem 8.14SE
To determine
Whether the decision taken by the president to produce boxed assorted chocolate is right or wrong.
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E8-30A Determine maximum outsourcing price (Learning Objective 6)
lamilton Containers manufactures a variety of boxes used for packaging. Sales of its
Model A20 box have increased significantly to a total of 430,000 A20 boxes. Hamilton
has enough existing production capacity to make all of the boxes it needs. The variable
cost of making each A20 box is $0.80. By outsourcing the manufacture of these A20
boxes, Hamilton can reduce its current fixed costs by $103,200. There is no alternative
use for the factory space freed up through outsourcing, so it will just remain idle.
What is the maximum Hamilton will pay per Model A20 box to outsource production
of this box?
Smart Strike Company manufactures and sells soccer balls for teams of children in elementary and high school. Smart Strike's best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, Smart Strike expects to sell the following:
Practice Balls
Match Balls
Units
Selling Price
Units
Selling Price
January
50,000
$8.25
7,000
$16.00
February
58,000
$8.25
7,500
$16.00
March
80,000
$8.25
14,000
$16.00
April
100,000
$8.25
18,000
$16.00
Required:
1. Construct a sales budget for Smart Strike for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter. If required, round your answers to the nearest cent.
Smart Strike CompanySales BudgetFor the First Quarter of Next Year
January
February
March
Quarter
Practice ball:
Units
____
____
_____…
Enrichment Activity 4: I'll show you my figure & give me your solution!
Direction: Read and understand the problem below calculate the cost of goods sold
and gross profit. Write your answer on a separate sheet of paper. (10 minutes)
Problem A
Shoe keeper had bought 1.00 footballs for Ph.30.00 each. One football player comes
and bought 10 footballs for 50.00 each. Calculate the cost of goods
sold. Show your solution.
Problem B
XYZ Company has Beginning Inventory Php. 100,000, New Purchases amounting
to Php. 450,000 and Ending Inventory is Php. 35,000. Find the cost of
goods sold for XYZ Company.
Problem C
I sell T-shirts, I bought them from the manufacturer for 500.00 for each tshirt. I sold
them at 800.00 each. In the month of February, I decided to buy 10 pieces of t -shirts
and only seven t-shirts were sold.
Compute the cost of goods sold and gross profit. Show your solution.
Chapter 8 Solutions
Managerial Accounting (5th Edition)
Ch. 8 - Prob. 1QCCh. 8 - (Learning Objective 1) Keys to making short-term...Ch. 8 - (Learning Objective 2) Which is true of...Ch. 8 - (Learning Objective 3) Which of the following...Ch. 8 - Prob. 5QCCh. 8 - Prob. 6QCCh. 8 - (Learning Objective 4) A segment margin is the a....Ch. 8 - (Learning Objective 5) When resources are...Ch. 8 - (Learning Objective 6) Which of the following is...Ch. 8 - Prob. 10QC
Ch. 8 - Determine relevance of information (Learning...Ch. 8 - Prob. 8.2SECh. 8 - Prob. 8.3SECh. 8 - Prob. 8.4SECh. 8 - Prob. 8.5SECh. 8 - Prob. 8.6SECh. 8 - Prob. 8.7SECh. 8 - Prob. 8.8SECh. 8 - Product mix decision: Unlimited demand (Learning...Ch. 8 - Prob. 8.10SECh. 8 - Outsourcing production decision (Learning...Ch. 8 - Relevant information for outsourcing delivery...Ch. 8 - Prob. 8.13SECh. 8 - Prob. 8.14SECh. 8 - Prob. 8.15SECh. 8 - Determine relevant and irrelevant information...Ch. 8 - SUSTAINABILITY ES-17A Sustainability and...Ch. 8 - Prob. 8.18AECh. 8 - Prob. 8.19AECh. 8 - Analyze special order decision (Learning Objective...Ch. 8 - Prob. 8.21AECh. 8 - Prob. 8.22AECh. 8 - Prob. 8.23AECh. 8 - Discontinuing a product line (Learning Objective...Ch. 8 - Prob. 8.25AECh. 8 - Determine product mix for retailertwo stocking...Ch. 8 - Prob. 8.27AECh. 8 - Make-or-buy product component (Learning Objective...Ch. 8 - Prob. 8.29AECh. 8 - Prob. 8.30AECh. 8 - Prob. 8.31AECh. 8 - Prob. 8.32BECh. 8 - Prob. 8.33BECh. 8 - Prob. 8.34BECh. 8 - Prob. 8.35BECh. 8 - Prob. 8.36BECh. 8 - Prob. 8.37BECh. 8 - Prob. 8.38BECh. 8 - Prob. 8.39BECh. 8 - Prob. 8.40BECh. 8 - Identify constraint, then determine product mix...Ch. 8 - Determine product mix for retailertwo stocking...Ch. 8 - Prob. 8.43BECh. 8 - Prob. 8.44BECh. 8 - Prob. 8.45BECh. 8 - Determine maximum outsourcing price (Learning...Ch. 8 - Prob. 8.47BECh. 8 - Prob. 8.48APCh. 8 - Special order decision and considerations...Ch. 8 - Prepare and use contribution margin statements for...Ch. 8 - Product mix decision under constraint (Learning...Ch. 8 - Outsourcing decision given alternative use of...Ch. 8 - Prob. 8.53APCh. 8 - Prob. 8.54BPCh. 8 - Prob. 8.55BPCh. 8 - Prepare and use contribution margin statements for...Ch. 8 - Prob. 8.57BPCh. 8 - Prob. 8.58BPCh. 8 - Prob. 8.59BPCh. 8 - Decide whether to discontinue a department...Ch. 8 - Prob. 8.61ACTCh. 8 - Outsourcing Decision at a Real Company Go to the...Ch. 8 - Prob. 8.63ACTCh. 8 - Prob. 8.64ACT
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