Details of this Paper

ACC 102 Project




Name;Student ID;Thomas Edison State College;Principles of Managerial Accounting (ACC-102);Section no.;Semester and year;Final Project;1. Cost-volume-profit relationships (15 points);The following data are available for a product manufactured and sold by Logan Company;;Compute the following;(a) Contribution margin per unit: $;(b) Number of units that must be sold to break-even: _______________ units;(c) Dollar sales volume to produce income of $864,000 before taxes: $;Computations;2. Incremental analysis (20 points);Information regarding current operations of the Farrell Corporation is given below;;A proposed addition to Farrell?s factory is estimated by the sales manager to increase sales by a maximum of $750,000. The company?s accountants have determined that the proposed addition will add $320,000 to fixed costs each year.;(a) Explain why the existing $310,000 of fixed costs is a sunk cost while the $320,000 of fixed costs associated with the proposed addition is an out-of-pocket cost.;(b) Calculate by how much the proposed addition will either increase or reduce operating income.;3. Responsibility income statement-preparation (20 points);Gameland Village is segmented into two sales departments: software and video games. During April, these two departments reported the following operating results;;In addition, fixed costs common to both departments amounted to $42,000.;Complete the following segmented income statement for Gameland Village. Follow the contribution margin approach, and show percentages as well as dollar amounts. Conclude your income statement with the company?s income from operations.;GAMELAND VILLAGE;Income Statement by Product Lines;For the Month Ended April 30, 20;Segments;Gameland Village;Software;Video Games;Dollars;%;Dollars;%;Dollars;%;Sales;$;$400,000;100;$200,000;100;Variable Costs;65;56;$;$;$


Paper#74113 | Written in 18-Jul-2015

Price : $47