10026_041610_96 - *This sequence is the basis for...

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Learning Curve: New Total Avg. Total Units Units Time Time 1 1 2000 2000 1 2 2000(.9)= 1800 1800(2)= 3600 2 4 1800(.9)= 1620 1620(4)= 6480 4 8 1620(.9)= 1458 1458(8)= 11,664 Marginal Time 3600-2000 = 1600 All 4 units 6480 First 2 unites (3600) Last 2 units 2880 January/February All 8 units 11,664 January First 2 units (3600) February 8064 hours -Direct Materials are not affected by the Learning Curve. All 8 units 11,664 First 4 units (6480) Last 4 units 5184 5184 / 4 = 1296 hours per unit *Chapter 12* Sales -VC CM -FC Net Operating Income
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Unformatted text preview: *This sequence is the basis for everything in the chapter. Selling Price = $20 Variable Cost = $7 per unit Fixed Cost = $58,500 per year Sales 20 100% 5000(20) = 100,000-VC (7) 35% 5000(7) = (35,000) CM $13 65% 5000(13) = 65,000 Sales-VC-FC = N.O.I. $20u-$7u-$58,500 = $0 $13u-$58,500 = $0 $13u = $58,500 u = $58,500 / $13 u = 4500 units *Take home quiz is due on Monday. Handout was given on Wednesday....
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This note was uploaded on 08/25/2010 for the course ACCT 327 taught by Professor Gillespie,j during the Spring '08 term at University of Delaware.

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10026_041610_96 - *This sequence is the basis for...

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