Questions from Cost Accounting


Q: Technology Solutions sells a ready-to-use software product for

Technology Solutions sells a ready-to-use software product for small businesses. The current selling price is $300. Projected operating income for 2011 is $490,000 based on a sales volume of 10,000 un...

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Q: R. A. Ro and Company, a manufacturer of quality

R. A. Ro and Company, a manufacturer of quality handmade walnut bowls, has had a steady growth in sales for the past five years. However, increased competition has led Mr. Ro, the president, to believ...

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Q: The Brown Shoe Company produces its famous shoe, the Divine Loafer

The Brown Shoe Company produces its famous shoe, the Divine Loafer that sells for $60 per pair. Operating income for 2011 is as follows: Sales revenue ($60 per pair) ……………………$300,000 Variable cost ($...

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Q: The WalkRite Shoe Company operates a chain of shoe stores that sell

The WalkRite Shoe Company operates a chain of shoe stores that sell 10different styles of inexpensive men’s shoes with identical unit costs and selling prices. A unit is defined as a...

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Q: Exclusive Resorts (ER) operates a five-star hotel with

Exclusive Resorts (ER) operates a five-star hotel with a championship golf course. ER has a decentralized management structure, with three divisions: Lodging (rooms, conference facilities) Food (resta...

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Q: Refer to requirement 3 of Problem 3-38. In this

Refer to requirement 3 of Problem 3-38. In this problem, assume the role of the owner of WalkRite. Required: 1. Calculate the number of units sold at which the owner of WalkRite would be indifferent...

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Q: Stylewise Printing Company currently leases its only copy machine for $1

Stylewise Printing Company currently leases its only copy machine for $1,000 a month. The company is considering replacing this leasing agreement with a new contract that is entirely commission based....

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Q: PC Planet has just opened its doors. The new retail store

PC Planet has just opened its doors. The new retail store sells refurbished computers at a significant discount from market prices. The computers cost PC Planet $100 to purchase and require 10 hours o...

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Q: Agro Engine Company manufactures and sells diesel engines for use in small

Agro Engine Company manufactures and sells diesel engines for use in small farming equipment. For its 2012 budget, Agro Engine Company estimates the following: Selling price …………………………………………..$ 3,000...

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Q: The Fasano Company uses a job-costing system at its Dover

The Fasano Company uses a job-costing system at its Dover, Delaware, plant. The plant has a machining department and a finishing department. Fasano uses normal costing with two direct-cost categories...

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