California Creamery

QUESTION 4: Kai decides to add color and keep his price the same. This will increase variable costs by $0.40 per issue. What will be the new unit volume (copies per issue) required to maintain $500 profits and cover the increased fixed and variable costs?

Table 4 details the differences in standard costs for each product produced based upon the costing method

1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units?

1) In this exercise, you viewed the settlement of costs to finished goods and manufactured output settlement. As noted in the exercise, each should be for $42,000.

In our second assumption, instead of using the cost of goods per cases in 1986, we try to use the percentage it counts in the total expenses which is 50.4% and to find the sales needed to break-even. The detail of the calculation is shown in the answer for questions d. The result is that 95,635, a little bit higher than the estimated sales of 90,000.

13. Sunglass Hut purchases a pair of Tiffany sunglasses from a wholesaler for $180 and sells it for $300. If the wholesaler increases its price by 20%, to the nearest dollar, what should Sunglass Hut charge in order to maintain the same percent margin?

When people hear the name Josiah Wedgwood they might think of navy blue and white pottery but in actual fact Wedgwood was the brains behind so much more. Josiah Wedgwood was born 1730 and was not like the rest of the young children of his generation as Wedgwood’s family was part of a group called the Dissenters. The Dissenters are a collection of people that do not agree with the ways of the church so in their own way to rebel they have created their own society. In this society they have created their own church, community and school. The school of the Dissenters has been home to some of the greatest mind of history. This includes Albert Einstein, Josiah Wedgwood and Charles Darwin. These schools are heavily based in sciences and mathematics so it gives the Dissenters a large step up intellectually.

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2. Assume that there is no January 1, 20X7, inventory; no variances are allocated to inventory; and the firm uses a “full absorption” approach to product costing. Compute:

The production manager for the Coory soft drink company is considering the production of 2 kinds of soft drinks: regular and diet. Two of her limited resources are production time (8 hours = 480 minutes per day) and syrup (1 of her ingredients) limited to 675 gallons per day. To produce a regular case requires 2 minutes and

The Cheesecake Factory Incorporated is in the “Restaurant Industry.” It started in the 1940s in the home of Oscar and Evelyn Overton. The business was so successful that in 1971, they moved the cheesecake business to Los Angeles and named it “The Cheesecake Factory”. In 1978, their son David founded The Cheesecake Factory restaurant in Beverly Hills and 30 years later you can find their restaurant in towns and cities all over the United States with new businesses opening all the time.

Dessert first is a family owned business with four partners. Each partner has invested $25,000 into the company and the rest has come from investments and loans. We each own a quarter (25% each) of the company. The presidents of the company are John Waldeck & Christine Waldeck and the vice presidents of the company are Tracy Waldeck and Daniel Waldeck. We all have extensive experience in marketing, finance, sales and management. We have mutually decided that our business structure should be a limited liability company (LLC) so that all of the owners have limited liability and our personal assets are protected.

Thornton’s, a premier chocolatier founded in the UK in 1911, is a High Street business operating solely in the United Kingdom with a single product in its portfolio: gourmet chocolates. Today, Thornton’s has annual sales revenues of £221 million which are provided by 350 different cafes and retail stores, consisting of over 200 franchises that offer products via the Internet, in-store, and mail order. Thornton’s is a publicly traded company on the London Stock Exchange, with a current stock value of £99 per share (Bloomberg 2014). The company has, between 2012 and 2013, seen basically flat sales (221M in 2013 and 222M in 2014), which is a problem for achieving growth for this High Street firm. The company was, however, able

Suppose a product can be produced using virgin ore at a marginal cost given by MC1 = 0.5q1 and with recycled materials at a marginal cost given by MC2 =5+ 0.1q2.

Number of pages including this one: (Please number your pages like this: page 1 of 7,