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Unformatted text preview: 1 Davis Com pany exam ple RM - Beg inv 3500 RM - purchases 29000 32500 less RM end inv 6000 RM used 26500 2 Urban Com pany exam ple RM - Beg inv 4000 RM - purchases 71000 Available 75000 less RM end inv 5000 RM used 70000 3 Reno Corp. exam ple Est OH - planned 300000 Est DLH 750000 OH rate 0.4 4 Birm ingham Machine exam ple high low hrs costs High useage 800 820 low useage 300 750 500 70 vc rate 0.14 vc at high useage X rate fixed cost 820 tc at 400 876 5 Gary Corp. flexible budget for 200,000 units FC VC rate 6 Aztec Co. truck m iles m iles FC VC rate cost per unit Num ber of units total cost 7 A firm Est total sales Sales # DIV/0! 100% VC CM enter as a decim al FC Net Incom e enter as a decim al 8 Sm al m fg firm Est change in incom e Sales 100% VC enter as a decim al CM Sales increases by Net incom e increases by 9 Brown Corp. Total job cost DM DLH DK rate MHs OH rate total 10 Virginia Co....
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- Spring '12