Questions from Managerial Accounting

Q: Rivera Co. sold 20,000 units of its only product

Rivera Co. sold 20,000 units of its only product and incurred a $50,000 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2014’s activities...

Q: Mingei Co. produces and sells two products, BB and TT

Mingei Co. produces and sells two products, BB and TT. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the compa...

Q: This year Best Company earned a disappointing 5.6% after

This year Best Company earned a disappointing 5.6% after-tax return on sales (net income/sales) from marketing 100,000 units of its only product. The company buys its product in bulk and repackages it...

Q: Arctic Cat’s production requires activities. What are value-added activities

Arctic Cat’s production requires activities. What are value-added activities?

Q: You hire a new assistant production manager whose prior experience is with

You hire a new assistant production manager whose prior experience is with a company thatproduced goods to order. Your company engages in continuous production of homogeneous products that go through...

Q: Milano Co. manufactures and sells three products: product 1,

Milano Co. manufactures and sells three products: product 1, product 2, and product 3. Their unit sales prices are product 1, $40; product 2, $30; and product 3, $20. The per unit variable costs to ma...

Q: The following costs result from the production and sale of 12,

The following costs result from the production and sale of 12,000 CD sets manufactured by Gilmore Company for the year ended December 31, 2013. The CD sets sell for $18 each. The company has a 25% inc...

Q: US-Mobile Company manufactures and sells two products, conventional phones

US-Mobile Company manufactures and sells two products, conventional phones and smart phones, in the ratio of 5:3. Fixed costs are $105,000, and the contribution margin per composite unit is $125. What...

Q: A high proportion of Company A’s total costs are variable with respect

A high proportion of Company A’s total costs are variable with respect to units sold; a high proportion of Company B’s total costs are fixed with respect to units sold. Which company is likely to have...

Q: Listed here are four series of separate costs measured at various volume

Listed here are four series of separate costs measured at various volume levels. Examine each series and identify whether it is best described as a fixed, variable, step-wise, or curvilinear cost. (It...