The world’s Largest Sharp Brain Virtual Experts Marketplace Just a click Away
Levels Tought:
Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 402 Weeks Ago, 6 Days Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
CVP WITH ACTIVITY-BASED COSTING
Dory Manufacturing Company produces T-shirts that are screen-printed with the logos of various sports teams. Each shirt is priced at $10. Costs are as follows:
|
Cost Driver |
Unit Variable Cost |
Level of Cost Driver |
|
Units sold |
$ 5 |
— |
|
Setups |
450 |
80 |
|
Engineering hours |
20 |
500 |
|
Other data: |
 |
 |
|
Total fixed costs (conventional) |
$96,000 |
 |
|
Total fixed costs (ABC) |
50,000 |
 |
Required:
1. Compute the break-even point in units using conventional analysis.
2. Compute the break-even point in units using activity-based analysis.
3. Suppose that Dory could reduce the setup cost by $150 per setup and could reduce the number of engineering hours needed to 425. How many units must be sold to break even in this case?
Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------acq-----------uis-----------iti-----------on -----------of -----------my -----------sol-----------uti-----------on.-----------Ple-----------ase----------- pi-----------ng -----------me -----------on -----------cha-----------t I----------- am----------- on-----------lin-----------e o-----------r i-----------nbo-----------x m-----------e a----------- me-----------ssa-----------ge -----------I w-----------ill----------- be----------- ca-----------tch-----------