Description
Managerial Accounting 1B
Financial
and Managerial Accounting
Chapter 23
1.
Exercise 23-2 Scrap or
rework L.O.A1
A company must decide between
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(1)
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What is the incremental income
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Incremental income
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$
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(2)
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What is the incremental income
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Incremental income
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$
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(3)
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What must the company decide?
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The units should not be reworked
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re5-02-2012
2.Exercise 23-4
Decision to accept additional business or not L.O. A1
Feist Co. expects to sell 200,000
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Sales (200,000 units)
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$
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3,000,000
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Costs and expenses
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Direct
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400,000
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Direct
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800,000
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Overhead
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200,000
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Selling
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300,000
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Administrative
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514,000
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Total costs and
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2,214,000
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Net income
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$
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786,000
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The company has an opportunity to
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Calculate the combined total net
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3.
Exercise 23-6 Make or buy decision L.O. A1
Santos Company currently
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Calculate the total incremental
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Total incremental cost
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Calculate the total incremental
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Total incremental cost
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Should the company continue to
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4.Exercise 23-8 Sell
or process decision L.O. A1
Cantrell Company has already
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1.
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Calculate the Incremental Net
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Incremental net income
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2.
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Indicate whether the 50,000 units
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5.Exercise 23-12
Sales mix determination and analysis L.O. A1
Bethel Company owns a machine that who has agreed to buy all of the company’s output up to a maximum of 3,750
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Product
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Product
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Selling price per unit
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$
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12.50
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$
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7.50
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Variable costs per
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3.75
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4.50
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1.
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Determine the company’s most
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Product TLX
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Product MTV
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2.
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Determine the contribution margin
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Contribution margin
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Problem 23-6A Analysis
of possible elimination of a department L.O. A1
[The following information applies to the questions displayed
below.]
Home Decor Company’s management is
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In analyzing whether to eliminate
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a.
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The company has one office worker
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b.
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The full salaries of two
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c.
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Eliminating Department 200 would
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d.
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The store building is rented under
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e.
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Closing Department 200 will
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6.
Problem 23-6A Part 1
Required:
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1.
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Complete the three-column report
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7.Problem 23-6A Part 2
2.
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Complete the forecasted annual
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