Questions from Cost Management

Q: The Jurassic Classics has four employees on its sales team and uses

The Jurassic Classics has four employees on its sales team and uses a compensation that provides each person with a base salary of $40,000 per year and the opportunity to earn commission on sales. The...

Q: For the most recent year, Triad Company had fixed costs of

For the most recent year, Triad Company had fixed costs of $240,000 and variable costs of 75% of total sales revenue, earned $70,000 of net income after taxes, and had an income tax rate of 35%. Requ...

Q: Cohen Company produces and sells socks. Variable cost is $6

Cohen Company produces and sells socks. Variable cost is $6 per pair, and fixed costs for the year total $75,000. The selling price is $10 per pair. Required: Calculate the following: 1. The breakeve...

Q: Companies that have a high demand for making copies, both color

Companies that have a high demand for making copies, both color and black and white, often choose to lease a high-end copier that provides fast and reliable service at a reasonable cost. The lease is...

Q: Harold McWilliams owns and manages a general merchandise store in a rural

Harold McWilliams owns and manages a general merchandise store in a rural area of Virginia. Harold sells appliances, clothing, auto parts, and farming equipment, among a wide variety of other types of...

Q: The following sales and cost data (in thousands) are for

The following sales and cost data (in thousands) are for two companies in the transportation industry: Required: 1. Calculate the degree of operating leverage (DOL) for each company. If sales increa...

Q: Units sold ………………………………………………………. 1,000 Price ……………………………………………………………….. $ 10

Units sold ………………………………………………………. 1,000 Price ……………………………………………………………….. $ 10 Sales ………………………………………………………… $10,000 Variable manufacturing costs ………………………… 4,000 Fixed manufacturing costs ………………………………...

Q: Weighted-average costs per equivalent unit are $2 for direct

Weighted-average costs per equivalent unit are $2 for direct materials and $3 for conversion. There are no transferred-in costs and no spoilage. What is the cost of goods completed and transferred out...

Q: TastyKreme and Krispy Kake are both producers of baked goods, but

TastyKreme and Krispy Kake are both producers of baked goods, but each has followed a different production strategy. The differences in their strategies resulted in differences in their cost structure...

Q: Today’s retailers are finding that online sales and service are a necessary

Today’s retailers are finding that online sales and service are a necessary ingredient of their overall marketing and selling strategy because of increased competition. In certain retail sectors, cons...