comparison of profitability

comparison of profitability - 6 Comparison of Profitability...

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6.) Comparison of Profitability Valves Pumps Flow Controllers Actual Selling Price $57.78 $81.26 $97.07 Standard Unit Cost $37.56 $63.10 $56.50 Gross Margin $20.22 $18.16 $40.57 Gross Margin percentage 35% 22% 42% Revised Unit Cost $49.00 $58.98 $47.97 Gross Margin $8.78 $22.31 $49.10 Gross Margin Percentage 15% 27% 51% ABC Unit Cost $37.75 $48.87 $100.57 Gross Margin $20.03 $32.39 -$3.50 Gross Margin Percentage 35% 40% 4%
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3.) Revised Product Costs Valve Pump Flow Controllers Total Direct Materials $120,000.00 $250,000.00 $88,000.00 $458,000.00 Run Labor $30,000.00 $100,000.00 $25,600.00 $155,000.00 Set up Labor $128.00 $640.00 $1,920.00 $2,688.00 Material Related Overhead $57,640.00 $120,087.00 $42,271.00 $220,000.00 Overhead $159,722.00 $266,204.00 $34,074.00 $460,000.00 Total Costs $367,492.00 $736,931.00 $191,865.00 $1,296,288.00 #of Units 7500 12500 4000 Cost per Unit $49.00 $58.95 $47.97
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4.) Activity Based Costing (ABC) Approach Valves Pump Flow Controllers Total Direct Materials $120,000.00
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This note was uploaded on 12/15/2010 for the course ACCT 213 taught by Professor Vinciguerra during the Spring '10 term at Moravian.

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comparison of profitability - 6 Comparison of Profitability...

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