Managerial Accounting Homework Revew Chapter 8 Answer Key

Managerial Accounting Homework Revew Chapter 8 Answer Key -...

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Chapter 8 Homework Assignment Review Sheet EXERCISES E4. LO 1 Price Quantity Variable Cost per Unit Contribution Margin per Unit Total Contribution Margin Fixed Costs Profit $6.95 20,000 $1.50 $5.45 $109,000 $80,000 $29,000 5.95 25,000 1.50 4.45 111,250 80,000 31,250 4.95 32,000 1.50 3.45 110,400 80,000 30,400 A price of $5.95 yields the largest monthly profit. E5. LO 1 Price Quantity Demanded Variable Cost per Unit Contribution Margin per Unit Total Contribution Margin Fixed Costs Profit $11.00 320 $2.00 $9.00 $2,880 $1,200 $1,680 10.00 365 2.00 8.00 2,920 1,200 1,720 9.00 385 2.00 7.00 2,695 1,200 1,495 8.00 420 2.00 6.00 2,520 1,200 1,320 A price of $10.00 yields the largest monthly profit. E6. LO 2 Accepting the order will result in $110,000 of incremental profit. Incremental revenue $100 × 2,000 $ 200,000 Incremental costs: Material $25 × 2,000 $ 50,000 Labor $15 × 2,000 30,000 Variable overhead $5 × 2,000 10,000 90,000
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Incremental profit $ 110,000 E7. LO 2 Incremental revenue $925 × 120 $111,000 Incremental costs: Labor $450 × 120 $54,000 Variable overhead $375 × 120 45,000 99,000 Incremental profit $12,000 Accepting the order will result in an additional profit of $12,000 per year. E8.
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This note was uploaded on 09/22/2009 for the course BUSINESS ACG 2071 taught by Professor Love during the Fall '09 term at Florida State College.

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Managerial Accounting Homework Revew Chapter 8 Answer Key -...

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