Furniturindo sells chairs, tables, and cupboards. Unit cost and sales data shown below: Description Chairs Tables...
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Furniturindo sells chairs, tables, and cupboards. Unit cost and sales data shown below: Description Chairs Tables Unit sales price (Rp.) Direct material cost/unit (Rp.) Direct manufacturing labor/unit (Rp.) Manufacturing overhead/unit (Rp.) Average quantity sold per month (units) Total fixed costs are Rp. 16.920.000.000. 180,000 45,000 40,000 15,000 54,000 450,000 150,000 70,000 30,000 15,000 Cupboards 900,000 300,000 180,000 60,000 11,000 Required: 1. Calculate the weighted-average contribution margin/unit (25 points). 2. Compute and proof the break-even point for each product in units. (25 points) 3. Furniturindo is considering buying a new machine. If a new machine is purchased, it will increase fixed costs by 30% and decrease direct labor variable costs by 60%. Is it better to buy a new machine or not if the target is to decrease the BEP units? Detail the calculation. (50 points) Furniturindo sells chairs, tables, and cupboards. Unit cost and sales data shown below: Description Chairs Tables Unit sales price (Rp.) Direct material cost/unit (Rp.) Direct manufacturing labor/unit (Rp.) Manufacturing overhead/unit (Rp.) Average quantity sold per month (units) Total fixed costs are Rp. 16.920.000.000. 180,000 45,000 40,000 15,000 54,000 450,000 150,000 70,000 30,000 15,000 Cupboards 900,000 300,000 180,000 60,000 11,000 Required: 1. Calculate the weighted-average contribution margin/unit (25 points). 2. Compute and proof the break-even point for each product in units. (25 points) 3. Furniturindo is considering buying a new machine. If a new machine is purchased, it will increase fixed costs by 30% and decrease direct labor variable costs by 60%. Is it better to buy a new machine or not if the target is to decrease the BEP units? Detail the calculation. (50 points)
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1 Calculate the weightedaverage contribution marginunit The contribution margin per unit is the difference between the unit sales price and the variable cost per unit direct material cost direct manuf... View the full answer
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Management Accounting Information For Decision Making
ISBN: 9781618533517
7th Edition
Authors: Anthony A. Atkinson
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