i need in words not handwritten solution Part 2 3 2.Which of the following statements made by the CEO about introducing activity-basedcosting in MiceAreUs Limited is/are false?A.В.Introducing activity-based costing will reduce all costs in the short-termIf the cost of a computer mouse is the same using activity-based costing orabsorption costing, there will be no benefit using activity-based costingC.Both statements3.The budgeted distribution costs for next year comprise transport costs of £568,000and customer order processing costs of £29,050. It is estimated that in the next year,8,300 orders will be processed and that the delivery vehicles will travel 400,000kilometres.One of the company's customers has indicated that it will place 50 orders in the nextyear, each of which will involve a journey of 130 kilometres by delivery vehicle.What is the distribution cost for this customer? Show all workings. Mini-scenario 2MiceAreUs Limited manufactures two types of computer mouse; traditional wired (TW),traditional bluetooth (TB). These are in continuous production at the company's factory inDunbar, Scotland.Each mouse incorporates around 25 component parts that are bought from outsidesuppliers.Sales have recently been declining and the Board of Directors is considering a proposal todiscontinue TW and TB and replace them by a large range of ergonomically designedcomputer mice.These new mice would be highly customised for individual corporate customers and wouldbe frequently renewed to adopt the latest technologies and allow for market changes. Theywould be produced in short, discontinuous batches with production lines switching frequentlyfrom one product to another.The CEO claims that the adoption of activity-based costing will bring benefits to thebusiness, but the CFO is keener on a lifecycle costing approach.Required:Which of the following statements that have been made about activity-based costingis/are false?1.A.Activity-based costing recognises that some overhead costs do not dependdirectly on the volume of outputThe cost of implementing activity-based costing may exceed the benefits forMiceAreus LimitedВ.C.Both statements

1. Introduction of ABC costing will reduce the cost in the short run. ABC system assign cost on the…

Which of the following statements made by the CEO about introducing activity-based costing in MiceAreUs Limited is/are false? A. В. Introducing activity-based costing will reduce all costs in the short-term If the cost of a computer mouse is the same using activity-based costing or absorption costing, there will be no benefit using activity-based costing C. Both statements The budgeted distribution costs for next year comprise transport costs of £568,000 and customer order processing costs of £29,050. It is estimated that in the next year, 8,300 orders will be processed and that the delivery vehicles will travel 400,000 kilometres. One of the company's customers has indicated that it will place 50 orders in the next year, each of which will involve a journey of 130 kilometres by delivery vehicle. What is the distribution cost for this customer? Show all workings.

Which of the following statements made by the CEO about introducing activity-based costing in MiceAreUs Limited is/are false? A. В. Introducing activity-based costing will reduce all costs in the short-term If the cost of a computer mouse is the same using activity-based costing or absorption costing, there will be no benefit using activity-based costing C. Both statements The budgeted distribution costs for next year comprise transport costs of £568,000 and customer order processing costs of £29,050. It is estimated that in the next year, 8,300 orders will be processed and that the delivery vehicles will travel 400,000 kilometres. One of the company's customers has indicated that it will place 50 orders in the next year, each of which will involve a journey of 130 kilometres by delivery vehicle. What is the distribution cost for this customer? Show all workings.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 5P: Hudson Corporation is considering three options for managing its data warehouse: continuing with its...

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İzmir Forwarding’s transport price for one pallet of paint is TL80/km. in a certain route. Variable costs per unit equal TL32. The company expects total fixed costs to be TL72,000 for the next month at the projected transport level of 2,000 pallets. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. a) Suppose management believes that a TL16,000 increase in the monthly advertising expense will result in a considerable increase in sales. Sales must increase by how much to cover additional expenditure? b) Suppose that management believes that a 10% decrease in the selling price will result in a 10% increase in sales. If this proposed decrease in selling price is implemented, compute the change in the operating income. c) Write an alternative action for the company your own, to improve the performance, compute the change in the operating income. d) Which alternative (A, B, C) should be chosen?…
Hudson Corporation is considering three options for managing its data warehouse: continuing with its own staff, hiring an outside vendor to do the managing, or using a combination of its own staff and an outside vendor. The cost of the operation depends on future demand. The annual cost of each option (in thousands of dollars) depends on demand as follows: If the demand probabilities are 0.2, 0.5, and 0.3, which decision alternative will minimize the expected cost of the data warehouse? What is the expected annual cost associated with that recommendation? Construct a risk profile for the optimal decision in part (a). What is the probability of the cost exceeding $700,000?
ageNOWv2 | Online teachin X + m/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress... A F Variable costs as a percentage of sales for Lemon Inc. are 72%, current sales are $610,000. and fixed costs are $191,000. How much will income from operations change if sales increase by $48,900? Oa. $13,692 decrease Ob. $13,692 increase Oc. $35,208 decrease. Od. $35,208 increase D Q 10+
there are still these to answer Draw up a marginal cost statement on the basis that 12,000 units will be sold and calculate the net profit or loss c. Briefly explain what is meant by breakeven points d. Calculate the breakeven units in value and explain what it means to the director e. Calculate the sales activity to reach a target profit of £20,000.
Carizick Co manufactures gaming products. It has created a new games console called the QpBox which is about to be launched. Demand for the QpBox is anticipated to be high. The product life cycle of the QpBox is expected to be three years with 300,000 units forecast to be sold during its first year. Sales volumes are expected to decrease by 75,000 units in each subsequent year. Production volumes will be based on expected demand levels. The following costs for the QpBox have been determined: Design and development Pre-launch advertising Advertising in Year 2 Packaging Manufacturing cost $120m $0.5m $0.4m $3 per unit $80 per unit At a recent board meeting, the finance director said that Carizick Co should look to maximise the profitability of the QpBox over its life cycle. The marketing director made the comment that Carizick Co should focus on extending the maturity phase of the life cycle only as this stage is where the QpBox is most profitable. Contract with Zone Co Carizick Co has…
calculate the change in the net profit if sales increase by R600 000 (using the contribution ratio and assuming that the cost behaviour relationship remains the same) management believes that they could increase sales by 30%, if they improve the quality of the product. To increase the quality of the end product, they would increase the variable cost by R4.50 and they would also have to employ an additional quality inspector who is paid R60 000 for the year. Draft a marginal costing statement for next year taking the changes into account. Your statement must include all information in rand totals, per unit as well as percentage. calculate the new breakeven point in units and rands( using the formulae method) advise the company as to whether or not the changes should be implemented Rand total Per unit Percentage Sales(22 500) 1 800 000 80 100% Less total variable cost 1 350 000 60 contribution 450 000 Less; Total fixed cost 360 000 Net profit 90 000
Kien Sneakers is interested in investigating the level of contribution to profits and overheads that it can expect from a planned new trainer. It intends to set a sales price of €80 per pair. Fixed costs (marketing and general administration) associated with the new trainers are expected to be €350,000. The firm has estimated following range of cost of sales and distribution costs: Cost of Sales (€ per unit ) Cost of Sales (probability distribution) Distribution Costs (€ per unit ) Distribution Costs (probability distribution) 28 0.5 4 0.25 33 0.3 5 0.25 38 0.2 6 0.5 Required: Set up the profit ‘model’ for the new trainer. Estimate the profit contribution under ‘base’ case, ‘best’ case and ‘worst’ case scenarios. Explain the difference between a ‘scenario’ analysis and a ‘sensitivity’ analysis, with examples.
Problem Solving.Determine for what is asked. Show your solution legibly. Improper solution will not be credited. Consider the following cost and pricing data of ABC Corp. on its Product X:Price: P120.00.per unitProfit Contribution: P90.00 Proposed additional Cost: P3 per unit (for quality improvement)Current Profits: P2.4 millionSales: 100,000 units. A. Assuming that average variable costs are constant at all output levels, find ABC Corp.’s total cost function before the proposed change.B. Calculate the total cost function if the quality improvement is implemented.C. Calculate ABC Corp.’s break-even output before and after the change, assuming it cannot increase its price.D. Calculate the increase in sales that would be necessary with the quality improvement to increase profits to P2.7 million
A company is using target costing to establish whether it needs to redesign a proposed product. The following data is available: Target price £125 per unit Desired profit margin 25% The estimated cost of production £100 per unit By how much will the company attempt to reduce the cost of the product? A £6.25 per unit. B £12.50 per unit. C £25.00 per unit. D The company will not need to redesign the product.
The University of Ghana would want to increase the number of students by 10%. However, management would have to increase the number of lecturers which will result into 15% rise in compensation expense. This thus makes the additional expense a/an OA. incremental cost and relevant cost as well O B. fixed cost and relevant cost as well OC. variable cost and opportunity cost as well D. relevant cost and sunk cost as well
In attempting to achieve better results in the marketplace, management has been looking at changing the reward system for marketing, distribution and sales personnel. This would result in an increase in variable marketing and administrative costs by $2 per unit, and would reduce fixed marketing and distribution costs by $100,000: Calculate the number of units required to breakeven if management implemented the changes and Would you suggest that management pursue the changes? Explain By reference to the above data:How can a company effectively use CPV (Cost-Volume-Profit) analysis to make strategic decisions about its product pricing and production levels?
21. ABC company follows target costing approach, they normally expect to pay 30% return on investment to their investors. After the market survey of the new product that estimated that if they price the new product at OMR 120 then they can make a profit of 30% on their sales. What should be the target cost in this situation? a. OMR 84 b. OMR 36 c. OMR 30 d. OMR 156