Module 3 Case - Assignment Example

Only on StudentShare

Extract of sample
Module 3 Case

al Production Cost 3,100,000 Total Production Units 50,000 Production Cost Per Unit 62 Performance for the 2nd Quarter As far as the improvements are considered for the 2nd quarter, the assessment for Mr. Rosen is not under right direction. The information that they had provided, gives the same amount of net income under both approaches. Sales are same for both these approaches. However, the costing side is affected by these two approaches such that the costs are broken up on different methods under the two approaches. ...
Download paper


Conversion of Income Statement for the 1st Quarter into Contribution Margin Costing Approach Income Statement for 1st Quarter Contribution Margin Costing Approach   Per unit Amount Production 25,000     Sales 100 2,500,000 Variable Cost 62 (1,550,000) Contribution Margin 950,000 Fixed Cost (600,000) Net Income   350,000 Income Statement for 2nd Quarter under Absorption Costing Approach Income Statement for 2nd Quarter Absorption Costing Approach Sales 2,500,000 Cost of Goods Sold (1,800,000) Gross Profit 700,000 Selling and Admin expenses (350,000) Net Profit   350,000 Income Statement for 2nd Quarter under Contribution Margin Approach Income Statement for 2nd Quarter Contribution Margin…
Author : ryanloma

Related Essays

Assignment 3 for CLS325
This paper attempts to present the strengths and weaknesses of the two methods. The text-centered method of analyzing culture is considered as imperative in studying social context. Norman Fairclough explains that the theoretical basis for this concept is based on the fact that text itself is the product of people’s perspectives on the society in which they belong. He also points out that “texts constitute a major source of evidence for grounding claims about social, structures, relations and processes.” (209) In relation to the aforementioned points, it is, therefore, clear that texts...
4 pages (1004 words) Coursework
Strategic Corporate Finance
Quite simply, the investors also have their own set of motivations and would only be willing to invest in a corporation’s equity or debt if it meets with their required rate of return. They may be willing to take a risk in investing in a particular firm if the returns from this are higher than that offered by US Treasury bonds with one year to maturity. Since the rate of return on these bonds are guaranteed by the US Government, they are thought to be a riskless investment, assuming that the US Government will never default on payment of the principal and interest on the due dates....
5 pages (1255 words) Essay
Strategic Corporate Finance Mod 5 Case Assignment
Net Present Value (NPV) method is one of the most important methods used to make capital budgeting decisions by businesses today. NPV method is important because it helps financial managers maximize shareholders’ wealth by making better capital budgeting decisions. Basically we can determine whether a project is worth investing in or not by comparing the present value of inflows and outflows discounted at the rate of cost of capital. If the PV of net flows is positive (PV of inflows is more than the PV of outflows over the life of the project), we consider it a good investment because it...
5 pages (1255 words) Essay
Assignment 3: Tax Credits
Tax credits are neutral and enable the Congress in making certain that specific taxpayers get tax credit as concerns marginal tax rates (Cordes, Ebel, & Gravelle, 2005). This purpose is still relevant for today’s taxpayer because the economy of the country has continued to deteriorate over the years. As such, individual and businesses still need protection from harsh economic times. Fairness of Tax Credits and Their Impacts on Taxpayers According to (Murphy & Higgins, 2011), tax credits provide incentives to taxpayers hence motivating them to actively engage in certain economic activities....
8 pages (2008 words) Research Paper
Assignment 3: Tax Reform
Reducing the Tax Bite The tax impact on dividends as well as interest sustained in many ways like owning stocks in an account that is tax free, or by holding stocks that increase in value with time and pay no dividends. Tax Issues it is being argued that the tax structure enforces an extremely high percentage which makes it extremely difficult for corporation in the United States of America to attract investors and raise capital. This in turn has a linchpin affect because no new jobs are created and the entire economical development process is hindered. It is believed that the tax rate needs...
5 pages (1255 words) Essay
Module 5 Case Assignment
(Drury, 2004) These divisions are obligated to transact amongst themselves, the costs are decided by using a transfer. Even though the transfer prices may not differ much from the market prices, one of the divisions or the company as a whole in such a transaction go at a loss The buying divisions may buy for more than the principal market price or the selling division can sell below the market price, hence affecting their performance. This can either result into a loss or gain in any or all of the divisions. The company can also make a profit or a loss (Tully, 2012) Table1 of Supply Division C...
3 pages (753 words) Assignment
Assignment 3: Capstone Research Project
This analysis employs Durango manufacturing company's organizational situation to access the form and nature of financial management and the impact of the principles of stakeholder management, alongside aligning the organizational structure to achieve the right efficiency for the generation of high revenues. Case Study Durango Manufacturing Company is a firm that deals in manufacturing of a variety of products and the supply of industrial products . The firm deals in aircraft manufacturing, apparel manufacturing, automotive manufacturing, chemical and allied products, glass manufacturing, home...
10 pages (2510 words) Research Paper
Got a tricky question? Receive an answer from students like you! Try us!