Cost Behavior and Activity Based Costing (ABC)
SUPERIOR-PAPERS.COM essay writing company is the ideal place for homework help. If you are looking for affordable, custom-written, high-quality and non-plagiarized papers, your student life just became easier with us. Click the button below to place your order.
Order a Similar Paper Order a Different Paper
Complete the following questions using Microsoft Word or Excel, as appropriate. Review the grading rubric to confirm you are meeting the assignment requirements.
Zaldor Corporation sells a specialized speaker and has the following information for the current year:
| Total | Per Unit | Percent of Sales | |
| Sales (20,000 units) | 1,200,000 | 60 | 100% |
| Variable expenses | 800,000 | 40 | ? % |
| Contribution margin | 400,000 | 20 | ? % |
| Fixed expenses | 250,000 | ||
| Net operating income | 150,000 |
Required:
- Calculate the variable expense ratio
- Calculate the contribution margin ratio
- Calculate break even sales in units
- Calculate break even sales in dollars
- How many units must be sold to make a profit of $300,000?
Management is considering increasing the quality of its units by spending $3 more per unit in variable costs and adding a quality inspector for an additional $40,000 annual fixed cost. Management believes this change will increase unit sales by 20% at the same price.
- Calculate the new profit or loss if the changes are implemented.
- Would you recommend management make the changes? Why or why not?
Got stuck with a writing task? We can help! Use our paper writing service to score better grades and meet your deadlines.
Get 15% discount for your first order
Order a Similar Paper Order a Different Paper
