ACC202-Ch1-Prob2

ACC202-Ch1-Prob2 - Name: Date: Instructor: Course:...

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Name: Date: Instructor: Course: Problem P1-2 Incremental Analysis Marie's Pie Company Production Cost Budget April 2006 Production (in pies) 15,000 Ingredient cost (variable) $18,750 Labor cost (variable) 22,500 Rent (fixed) 5,000 Depreciation (fixed) 6,000 Other (fixed) 1,000 Total $53,250 Required: The variable costs per pie as follows at: $2.75 Label Amount Label Amount Managerial Accounting , Second Edition by James Jiambalvo Solving Managerial Accounting Problems Using Microsoft Excel for Windows Templates by Rex A Schildhouse Consider the production cost information for Marie's Pie Company given below. The company is currently producing and selling 200,000 pies annually. The pies sell for $4.00 each. The company is considering lowering the price to $3.70. Suppose this action will increase sales to 250,000 piles. Part a:
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ACC202-Ch1-Prob2 - Name: Date: Instructor: Course:...

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