Cost Accounting (15th Edition)
Cost Accounting (15th Edition)
15th Edition
ISBN: 9780133428704
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
Question
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Chapter 13, Problem 13.25P

1.

To determine

To calculate: Total sales revenue, selling price, rate of return on investment and markup percentage on full cost of product for the year 2014.

Given information:

2014,

Variable costs are $2,000,000.

Fixed costs are $2,500,000.

Operating income is $180,000.

Number of units sold are 500,000.

Total investment is $ 2,250,000

2.

To determine

To calculate: New selling price.

Given information:

Reduction in fixed cost is by $225,000.

Reduction is per unit sale price is by $0.30.

3.

To determine

To calculate: Operating income with reduction in units sold by 5%.

4.

To determine

Concerns in implementing CEO’s plan.

Blurred answer
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