What would be the impact on profit if variable costs per student decrease by 10 per...
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What would be the impact on profit if variable costs per student decrease by 10 per cent? Suppose fixed costs for the year are 10 per cent lower than projected, whereas variable costs per student are 10 per cent higher than projected. What would be the impact on operating profit for the year? If fees were reduced by 10% how many students would be required to earn the same profit as (C)(1)? The Medalina Company has 4 departments in its factory consisting of two service departments; 51 and 52, and two production departments; P1 and P2. Each of the production departments produce a single product. The current costs of each department are: P2 $120,000 The distribution and consumption of departments' services is given in the following table: Service provided by: Services used by: $1 52 $1 20% 1. Direct method 2. Step-down method $1 $04,000 $2 $63,000 P1 $90,000 $2 40% Selling Price Variable costs: Direct materials Labour & other costs What is the total cost incurred by P1 and P2 after allocating service department cost using P1 25% 60% Westford Ltd produces A110, B382, C657. Unit data for the three products follows: PRODUCT B382 $56 A110 $84 24 28 P2 35% 20% 15 27 C657 $70 9 40 What would be the impact on profit if variable costs per student decrease by 10 per cent? Suppose fixed costs for the year are 10 per cent lower than projected, whereas variable costs per student are 10 per cent higher than projected. What would be the impact on operating profit for the year? If fees were reduced by 10% how many students would be required to earn the same profit as (C)(1)? The Medalina Company has 4 departments in its factory consisting of two service departments; 51 and 52, and two production departments; P1 and P2. Each of the production departments produce a single product. The current costs of each department are: P2 $120,000 The distribution and consumption of departments' services is given in the following table: Service provided by: Services used by: $1 52 $1 20% 1. Direct method 2. Step-down method $1 $04,000 $2 $63,000 P1 $90,000 $2 40% Selling Price Variable costs: Direct materials Labour & other costs What is the total cost incurred by P1 and P2 after allocating service department cost using P1 25% 60% Westford Ltd produces A110, B382, C657. Unit data for the three products follows: PRODUCT B382 $56 A110 $84 24 28 P2 35% 20% 15 27 C657 $70 9 40
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Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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