Question : 151. Gyro Company manufactures Products T and W and operating at : 1239542

 

151. Gyro Company manufactures Products T and W and is operating at full capacity. To manufacture Product W requires three times the number of machine hours required for Product T. Market research indicates that 1,000 additional units of Product W could be sold. The contribution margin by unit of product is as follows: 

 

Product T

Product W

Sales price

$300

$325

Variable cost of goods sold

  235

  250

Manufacturing margin

$ 65

$ 75

Variable selling and administrative expenses

   25

   10

Contribution margin

$ 40

$ 65

 

 

 

 

 

 

Calculate the increase or decrease in total contribution margin if 1,000 additional units of Product W are produced and sold. 

 

 

 

 

 

152. Based upon the following data taken from the records of Bruce Inc., prepare a contribution margin analysis report for the year ended December 31, 2012. 

 

For Year EndedDecember 31, 2012

 

Actual

Planned

DifferenceIncrease  (Decrease)

 

 

 

 

Sales

$312,000

$325,000

$(13,000)

Less:

 

 

 

  Variable cost of goods sold

$169,200

$182,000

$(12,800)

  Variable selling and administrative  expenses

  32,400

 39,000

   (6,600)

      Total

$201,600

$221,000

$(19,400)

Contribution margin

$110,400

$104,000

$   6,400 

 

 

 

 

Number of units sold

120,000

130,000

(10,000)

 

 

 

 

Per unit:

 

 

 

  Sales price

$2.60

$2.50

.10 

  Variable cost of goods sold

1.41

1.40

.01 

  Variable selling and administrative   expenses

.27

.30

(.03)

 

 

 

 

 

 

 

 

 

 

153. The Excelsior Company has three salespersons. Average sales price per unit sold, average variable manufacturing costs per unit, and number of units sold for each salesperson is shown below.  Commissions are according to the following schedule:

Total Sales

Percentage

$0 to 49,999

6%

$50,000 to $52,999

7%

Over $53,000

8%

 

 

 

Salesperson

Mary Q.

John A.

Susan B.

Avg. selling price per unit

$50.00

$65.00

$45.00

Avg. var. mfg. costs per unit

25.00

30.00

35.00

Number of units sold

1,000

750

1,200

 

 

 

 

Prepare a contribution by salesperson report. 

 

 

 

 

 

 

 

154. The Excelsior Company has three salespersons. Average sales price per unit sold, average variable manufacturing costs per unit, and number of units sold for each salesperson is shown below.  Commissions are according to the following schedule:

Total Sales

Percentage

$0 to 49,999            

6%

$50,000 to $52,999   

7%

Over $53,000           

8%

 

 

 

Salesperson

Mary Q.

John A.

Susan B.

Avg. selling price per unit

$50.00

$65.00

$45.00

Avg. var. mfg. costs per unit

25.00

30.00

35.00

Number of units sold

1,000

750

1,200

 

 

 

 

Prepare a contribution by salesperson report. 

 

 

 

 

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more