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5e sol15-04

# 5e sol15-04 - price x Output unit price x Power used Unit...

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Cost Management Hansen and Mowen Ex 15-4 Name: SOLUTION Enter the appropriate numbers in the shaded cells in columns D, F, H, L, and N. 1) Input PQ x P PQ x P AQ x P AQ x P Change unit (output / price) Power ( 360,000 / 8 ) x \$3.00 = \$135,000 18,000 x \$3.00 = \$54,000 \$81,000 Materials ( 360,000 / 4 ) x \$15.00 = 1,350,000 81,000 x \$15.00 = 1,215,000 135,000 \$1,485,000 \$1,269,000 \$216,000 2) Selling Power Material Total profit change:
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Unformatted text preview: ( price x Output ) - ( unit price x Power used ) - ( Unit price x used ) 2007: ( \$8 x 360,000 ) - ( \$3 x 18,000 ) - ( \$15 x 81,000 ) = \$1,611,000 2006: ( \$6 x 307,200 ) - ( \$2 x 38,400 ) - ( \$16 x 76,800 ) = \$537,600 \$1,073,400 Price Recovery = Total profit change-Productivity-induced change = \$1,073,400-\$216,000 = \$857,400...
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