4.13 Accounting 211

4.13 Accounting 211 - Accounting 211 Tuesday, April 13th,...

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Unformatted text preview: Accounting 211 Tuesday, April 13th, 1999 Announcements: Exam #3 Results: Range = 13-100, Average = 67.4%, Average to date = 68.2% At this point, A = 88, B = 78, C = 68, D = 58 Lecture notes: Example: Sales 800,000- VC- 600,000 CM 200,000- FC- 150,000 Net Income 50,000 Activity level = 50,000 units Sales Price per Unit 800,000 / 50,000 = $16 VC per Unit 600,000 / 50,000 = $12 CM per Unit 200,000 / 50,000 = $4 What is the change in net income if sales were to increase by 100 units? 100 x 4 = $400 Change in sales = 1,600 Change in VC = 1,200 Change in CM = 400 Change in FC = 0 A customer has placed an order for 200 units at $14 per unit. What is the change in net income as a result of the order? Sales price 14- VC- 12 200 x 2 = $400 CM per unit 2 Chapter 20 Benefits of Budgeting It requires all levels of management to plan ahead It provides objectives for evaluating performance It provides information regarding future cash flows It functions as a control device Budgets:...
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4.13 Accounting 211 - Accounting 211 Tuesday, April 13th,...

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