If the company plans to increase promotion expense by RM20,000, how will that affect the predetermined overhead rate? Eventual cost of goods sold?
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| If the company plans to increase promotion expense by RM20,000, how will that affect the predetermined overhead rate? Eventual cost of goods sold? |
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- What would be the impact on the targeted overhead rate if the firm decides to boost marketing expenses by RM20,000, according to the plan? What will be the actual cost of items sold?The manager of a company are planning to manufacture more product than is needed for expected sales for the coming year. What effect will this have on operating income under(a) the absorption costing concept and (b) the variable costing concept?Fill in the blank/s: A company’s __________ function is the money generated by selling x units of its product. The difference between this function and the company’s cost function is called its ___________ function.
- 1. What is the profit per day of Machine A? 2. What is the profit per day of Machine B? 3. What would the percent of parts rejected have to be for Machine B to be as profitable as Machine A?The total cost formula for a company can be modeled by TC = 12570+ 50x where x represents the number of items sold. A formula for the company's total income is modeled with TR 80x, where a represents the number of items sold. This company will breakeven when its total costs equal its total income. - How many items must this company sell to breakeven? Answer:(1)Use the graph to answer the question that follows. Based on the chart above, if the product sells at a price of $3 per unit, what is the marginal revenue product of the second unit of labor? A-$30. B-$45. C-$90. D-$120. E-Indeterminate (2)The number of units of output that a machine will produce increases, ceteris paribus. How will this change in productivity affect demand for the machine? A-Demand for the machine will increase. B-Demand for the machine will decrease. C-There will be no change in demand for the machine. D-Demand will not change, but quantity demanded will decrease. E-Demand will not change, but quantity demanded will increase.
- If a company had a pure fixed cost structure, every dollar of revenue after covering the fixed costs would be pure profit. true or False?1. Determine the minimum transfer price that Cutting Division would accept. 2. Determine the maximum transfer price that the Assembly Division would pay. 3. If Cutting Division will accept the offer of Assembly Division, how much is the change in its operating income ? 4. If Cutting Division will make a counter offer of P45.25 per part, how much is the change in the operating income of Assembly Division assuming that its external supplier could not supply its needed quantity?Why might managers seeking a monthly bonus based on attaining a target operating income prefer the sales method of accounting for byproducts rather than the production method?
- The price of a product is expressed as ?, PHP = 10 – 28? where ? is the demand. Which of the following correctlyexpresses the total revenue? 10 − 28?2 28? = 10 10? − 28? 10? − 28?214. Customer life-cycle costs: Select one: a. Are the replacement costs of using a product or service. b. Are the costs to the customer of buying and using a product until it is replaced. c. Are the same as the selling life-cycle prices. d. Focus on marketing costs. e. Are the costs the selling company incurs to satisfy the customer.Assume that you are the president of your company and paid a year-end bonus according to the amount of net income earned during the year. When prices are rising, would you choose a FIFO or weighted average cost flow assumption? Explain, using an example to support your answer. Would your choice be the same if prices were falling? I need an example with net income for weighted average
