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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