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Cost of cleaning supplies for (1) time = 5000 / No.of cleaning time = $ 1250
No.
Month
Number of
cleaning Labor Cost
time
Cleaning
Supplies cost
Total Cost
March
24,000.00
5,000.00
29,000.00
April
24,000.00
6,250.00
30,250.00
May
24,000.00
7,500.00
31,500.00
10,000.00
34,000.00
4
Jun
8
24,000.00
1-b. Total cost of next quarter (April, May & Jun) =
95,750.00
2. will Boeing save money with the outside cleaning company over the next quarter
with charge rate for cleaning is = 5,900
Solution:
Number of
No.
Month
cleaning
time
Total Cost
April
29500
May
35400
Jun
47200
Total cost
quarter
of
next
112,100.00
Option (1-a) is the Best choice , Boeing will not save money by hiring the cleaning Cle
Company for the next quarter.
Khartoum University
MBA Program 2013
Managerial Accounting
Group (1)
Assignment No:1
Problem 2 - A2 Cost -Volume - Profit and Vending Machine:
1. What is the monthly break-even point in number of units/in dollar sales?
Solution:
Fixed Cost / Contribution Margin
5000 / 0.2
=
$ 25,000 per unit
In dollar sales =
1 * 25,000 =
$25,000
2. If 36,000 units were sold, what would be the company's net income?
Solution:
Net income = Revenue - Total cost (Fixed + variable cost)
(1 * 36,000) - (5000 + 0.8*36,000)
=
$2,200
3.If the space rental cost doubled, what the break-even point
Solution:
Fixed cost = 5000 +1152 = 6,152
Break even point = 6,152/ 0.2
$ 30,760 per unit
In dollar sales =
1 * 30,760
$30,760
4. What the break even point in number of unit /in dollar if machine manufacture $0.0
Solution:
Cost of soft drink = 0.8 + 0.02 = $ 0.82
C.M = 1 - 0.82 = $ 0.18
Break - even point = 5000/ 0.18
27,778.00 Units
=
$27,778
5. What the new net income if 36,000 were sold - if in addition to the fixed rent
Solution:
Break-even point = revenue = $ 25,000
No. of unit includes $ 0.04 = 36,000 - 25,000 = 11,000
Fixed cost = 5000
Variable cost = 0.8 + 0.04 = 0.84
0.84 * 11,000 = $ 9,240
Variable cost = (0.84 * 11,000) + (0.8 *25,000)
9,240 + 20,000
$29,240
Variable Cost.
Khartoum University
MBA Program 2013
Managerial Accounting
Group (1)
Assignment No:1
Net income = (36,000 *1) - (5000 + 29,240)
$1,760
artoum University
BA Program 2013
agerial Accounting
Group (1)
Assignment No:1
Total cost/per
feet
0.29
0.24
0.21
0.17
artoum University
BA Program 2013
agerial Accounting
Group (1)
Assignment No:1
artoum University
BA Program 2013
agerial Accounting
Group (1)
Assignment No:1
$
$
$
$
$
$
Unallocated expenses
Admin Salaries
Others
Subtotal
Operating Income before Taxes
$
$
$
150,000.00
69,000.00
43,600.00
31,600.00
40,000.00
41,000.00
81,000.00
Gross profit
Selling & Admin expenses
Commissions
Distribution
Subtotal
Income before Unallocated Expeses
15,000.00
10,400.00
25,400.00
8,000.00
4,000.00
12,000.00
4 - A2
1- Inventory section for BOE (Merchandise), 1000 Tents at 96 USD = 96000 USD
2- Inventory section for CSI (Manufacturing):
Direct materials
Work in process inventory
Finished good inventory (1000)
Total Inventory
50000
0
96000
146000
Sales
Inventory at beginning
purchases
Cost of good available for sale
Ending Inventory
Cost of good Sold
Gross profit
Total Selling & Admin expenses
Net Income
1,620,000.00
$
$
$
$
864,000.00
756,000.00
185,000.00
571,000.00
$
$ 960,000.00
$ 960,000.00
$
96,000.00
Sales
Inventory at beginning
Cost of goods Manufactured
Direct materials
Direct labor
Indirect Manufacturing
Total Cost of Products
Ending Inventory
Cost of good Sold
Gross profit
Total Selling & Admin expenses
1,620,000.00
$
$
$
864,000.00
756,000.00
185,000.00
571,000.00
$ 520,000.00
$ 290,000.00
$ 150,000.00
$ 960,000.00
$
96,000.00
Net Income
5- The difference between BOE & CSI :
BOE: Mechandiser has inventory for purchasing goods for resale.
CSI: Manufacturer has work in process inventory and finished goods (Direct Materials , Direct
labors & Indirect Manufacturing Overheads).
6The purpose is to provide all inventories for all users interested in Cost Management Accounting
AN DOORS COMPANY
COTRIBUTION TO CORPORATE COSTS & PROFIT (FOR
INTERNAL STRATEGIC DECISION MAKING
PURPOSES)
Custom Doors
Large Doors
Small Doors
$
30,000.00 $
40,000.00 $
80,000.00
$
$
$
5,000.00 $
28,000.00 $
33,000.00 $
15,000.00 $
5,000.00 $
20,000.00 $
20,000.00
8,000.00
28,000.00
(3,000.00) $
20,000.00
52,000.00
$
$
$
$
1,500.00
1,000.00
2,500.00
(5,500.00)
3,500.00
3,000.00
6,500.00
13,500.00
$
$
$
$
10,000.00
6,400.00
16,400.00
35,600.00
$
$
$
$
3-53
X2 No of Board Completed
Hours
mpleted
cle Time
week
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
y
66,402
65,943
60,337
50,096
64,241
60,846
43,119
63,412
59,283
60,070
53,345
65,027
58,220
65,406
35,268
46,394
71,877
61,903
50,009
49,327
44,703
45,582
43,818
62,122
52,403
X1
7,619
7,678
7,816
7,659
7,646
7,765
7,685
7,962
7,793
7,732
7,771
7,842
7,940
7,750
7,954
7,768
7,764
7,635
7,849
7,869
7,576
7,557
7,569
7,672
7,653
X2
2,983
2,830
2,413
2,221
2,701
2,656
2,495
2,128
2,127
2,127
2,338
2,685
2,602
2,029
2,136
2,046
2,786
2,822
2,178
2,244
2,195
2,370
2,016
2,515
2,942
X3
186.44
139.14
151.13
138.3
158.63
148.71
105.85
174.02
155.3
162.2
142.97
176.08
150.19
194.06
100.51
137.47
197.44
164.96
141.95
123.37
128.25
106.16
131.41
154.88
140.07
cle Time
D per hour of