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Managerial Accounting Two Problems




Question;Managerial;accounting;Question #1;The;following is budgeted information for the Christopher Corporation;Product;1;Product;2;Annual production & sales;50,000;75,000;Projected selling price;$40;$30;Direct Production Cost Information;Materials (per unit);$12;$8;Direct Labor (per unit);$6;$5;Additional;information;Selling & administrative costs (a mixed;cost) are budgeted to be $600,000 at the production and sales listed;above. The variable component is $3 per unit (same for each product).;Manufacturing overhead costs (a mixed cost) are;budgeted to be $800,000 at the production and sales listed above. The;fixed component is $300,000. Each product uses the same amount of variable;manufacturing overhead per unit.;Assuming;the budgeted sales mix remains intact, how many units of each product does Christopher need to sell in order to earn;a target operating income of $240,000?;Question #2;Consider the following information, prepared based;on a monthly capacity of 80,000 units;Category;Cost per Unit;Variable;manufacturing costs;$12.00;Fixed;manufacturing costs;$3.00;Variable;selling costs;$4.00;Fixed;selling costs;$2.00;Capacity cannot be added in the short;run and the firm currently sells the product for $23 per unit.;The;company is currently producing 74,000 units per month. A potential customer has;contacted the firm and offered to purchase 6,000 units this month only. Since;the potential customer approached the firm, there will be no variable selling;costs incurred. What is the minimum amount that the firm should be willing to;accept for this order?


Paper#40532 | Written in 18-Jul-2015

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