Messages
Proposals
Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.
Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support
Horizon Press produces textbooks for college courses. The company recently hired a new editor, Billie White, to handle production and sales of books for an introduction to accounting course. Billie’s compensation depends on the gross margin associated with sales of this book. Billie needs to decide how many copies of the book to produce. The following information is available for the fall semester 2013:
Estimated sales ...........26,000 books
Beginning inventory ......... 0 books
Average selling price ........ $ 81 per book
Variable production costs ...... $ 45 per book
Fixed production costs .......$ 416,000 per semester
The fixed cost allocation rate is based on expected sales and is therefore equal to $ 416,000 / 26,000 books = $ 16 per book.
Billie has decided to produce either 26,000, 32,500, or 33,800 books.
Required
1. Calculate expected gross margin if Billie produces 26,000, 32,500, or 33,800 books. (Make sure you include the production- volume variance as part of cost of goods sold.)
2. Calculate ending inventory
in units and in dollars for each production level.
3. Managers who are paid a bonus that is a function of gross margin may be inspired to produce a product in excess of demand to maximize their own bonus. The chapter suggested metrics to discourage managers from producing products in excess of demand. Do you think the following metrics will accomplish this objective? Show your work.
a. Incorporate a charge of 5% of the cost of the ending inventory as an expense for evaluating the manager.
b. Include nonfinancial measures when evaluating management and rewarding performance.
| Writer | Writer Name | Amount | Client Comments & Rating |
|---|---|---|---|
ONLINE |
Instant Homework Helper |
$36 |
She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up! |
Custom Original Solution And Get A+ Grades
Custom Original Solution And Get A+ Grades
Custom Original Solution And Get A+ Grades
| Writer | Writer Name | Offer | Chat |
|---|---|---|---|
ONLINE |
Engineering SolutionsHello, I an ranked top 10 freelancers in academic and contents writing. I can write and updated your personal statement with great quality and free of plagiarism |
$32 | Chat With Writer |
ONLINE |
Math GuruI have read your project details. I can do this within your deadline. |
$34 | Chat With Writer |
ONLINE |
Premium SolutionsHello, I an ranked top 10 freelancers in academic and contents writing. I can write and updated your personal statement with great quality and free of plagiarism |
$93 | Chat With Writer |
ONLINE |
Smart TutorGive me a chance, i will do this with my best efforts |
$99 | Chat With Writer |
ONLINE |
Academic MentorI have read and understood all your initial requirements, and I am very professional in this task. |
$18 | Chat With Writer |
ONLINE |
Finance MasterI have read and understood all your initial requirements, and I am very professional in this task. |
$69 | Chat With Writer |
Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.