Questions from Cost Accounting

Q: Sunset Travel Agency specializes in flights between Toronto and Jamaica. It

Sunset Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Hamilton Air. Sunset’s fixed costs are $23,500 per month. Hamilton Air charges passengers $1,500 per rou...

Q: Describe the business functions in the value chain.

Describe the business functions in the value chain.

Q: The Deli-Sub Shop owns and operates six stores in and

The Deli-Sub Shop owns and operates six stores in and around Minneapolis. You are given the following corporate budget data for next year: Revenues…………………..$11,000,000 Fixed costs…………………$ 3,000,000 Va...

Q: CVP exercises. The Doral Company manufactures and sells pens. Currently

CVP exercises. The Doral Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.50 per unit. Fixed costs are $900,000 per year. Variable costs are $0.30 per unit. Cons...

Q: The Home Style Eats has two restaurants that are open 24 hours

The Home Style Eats has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $430,500 per year. Service varies from a cup of coffee to full meals. The avera...

Q: Perfect Fit Jeans Co. sells blue jeans wholesale to major retailers

Perfect Fit Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $50 with $35 in variable costs of goods sold. The company has fixed ma...

Q: Suppose Morrison Corp.’s breakeven point is revenues of $1

Suppose Morrison Corp.’s breakeven point is revenues of $1,100,000. Fixed costs are $660,000. Required: 1. Compute the contribution margin percentage. 2. Compute the selling price if variable costs a...

Q: Cover Rugs is holding a 2-week carpet sale at Josh’s

Cover Rugs is holding a 2-week carpet sale at Josh’s Club, a local warehouse store. Cover Rugs plans to sell carpets for $950 each. The company will purchase the carpets from a local distributor for $...

Q: Braided Rugs, Inc., is considering three possible countries for the

Braided Rugs, Inc., is considering three possible countries for the sole manufacturing site of its newest area rug: Italy, Portugal, and Thailand. All area rugs are to be sold to retail outlets in the...

Q: Chartz 1-2-3 is a top-selling electronic

Chartz 1-2-3 is a top-selling electronic spreadsheet product. Chartz is about to release version 5.0. It divides its customers into two groups: new customers and upgrade customers (those who previousl...