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Relevant Costing
Relevant Costing
D
2. B
3. C
4. C
5. C
6. A or D
7. A
8. D
9. C
10. D
11. D
12. A or D
13. A
14. D or C
15. B
16. B
17. B or A
18. A or C
19.
Sol
Sales FOregone (1,000,000)
COGS Avoided
Variable 600,000
Fixed 120,000 720,000
Selling Expenses Avoided 100,000
Administrative Expense Avoided 25,000
Decrease in income (155,000)
20.
Contribution Margin 36,000
Direct Fixed Cost (40k x 75%) (30,000)
Operating Income 6,000
Add: Contribution Margin Urban (48k x 10%) 4,800
10,800
21.
Sales (120k x 10%) 12,000
Variable Cost (84k x 10%) (8,400)
Contribution Margin 3,600
Direct Fixed Cost (60k/12) (5,000)
Net Income (1,400) - B
22.
Contribution Margin (36,000 x 80%) 28,800
Direct Fixed Cost ( 40,000 x 85%) (34,000)
Store Segment Margin (5,200)
26.
X: 20,000hrs/5hrs per unit = 4,000 *50CM/unit = 200,000
Y: 5,000hrs/8hrs per unit = 625units*64CM/Unit = 40,000
Total 240,000
27.
28.
110
(80)
30
1,000
30,000
50
600
1000
(600)
400
29.
Projected sales 187,500
Less: desired profit (22,500)
Targeted total cost 165,000
No. of units sold 75,000
Cost per unit 2.20
34.
Total Revenue = Sell price * Annual sales
2.00*50,000 = 100,000
Target Cost per Bottle = (100,000 - 80,000 - 8,000)/50,000
= 0.024 A