Test _1 - Fall 2008 - solutions - RSM222 Term Test #1 Fall...

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RSM222 Term Test #1 Fall 2008 Part A ( 14 marks) 1. b 2. a 3. b 4. c 5. a 6. d 7. a 8. c 9. a 10. a 11. d 12. b 13. b 14. b Part B (20 marks) Total Per unit Sales 2640 24.00 $ Variable manufacturing costs: Direct materials 660 6.00 $ Direct labour 792 7.20 $ Overhead 528 4.80 $ Total variable 1980 18.00 $ contribution margin 660 6.00 $ $840,000 + $120,000+$132,000 182,000 units $6
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(b) Plan A Contribution Margin Saskatoon Windsor 170,000 units 200,000 units total Current Improvement Sales 4,080,000 4,800,000 8,880,000 7,440,000 - Variable Costs 3,060,000 3,240,000 6,300,000 5,220,000 Contribution Margin 1,020,000 1,560,000 2,580,000 2,220,000 - Fixed factory overhead 840000 1,080,000 1,920,000 1,920,000 Fixed regional promotional 120000 120,000 240,000 240,000 Allocated home office 132000 240,000 372,000 372,000 Increased advertising costs 120000 120,000 1212000 1,440,000 2,652,000 2,532,000 - (192,000) 120,000 (72,000) (312,000) (240,000)
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Plan B Windsor Plant only Saskatoon Windsor Total 0 units 310,000 units Current Sales Revenue - 7,440,000 7,440,000 7,440,000 Variable manufacturing Direct material - 1,860,000 Direct labour - 1,992,000 Overhead - 1,368,000 - 5,022,000 5,022,000 5,220,000 Contribution Margin
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This note was uploaded on 02/02/2010 for the course MANAGEMENT A taught by Professor X during the Spring '10 term at University of Toronto- Toronto.

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Test _1 - Fall 2008 - solutions - RSM222 Term Test #1 Fall...

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