Welcome

Anti Essays offers essay examples to help students with their essay writing.

Sign Up

Cost Accounting Essay

Open Document

Below is an essay on "Cost Accounting" from Anti Essays, your source for research papers, essays, and term paper examples.

AC552
Week 4 Homework

Please complete the below problems and submit your answers in the Week 4 Drop Box.   See "Syllabus/Due Dates for Assignments & Exams" for due date information.
1. Martin & Sons, a small door manufacturer, sold 4,600 white six-panel doors for $130 each and 2,400 unfinished six-panel doors for $100 each.   Mr. Martin feels that because home-owners are doing more themselves and the economy is down, that they may see an increase of 15% in sales of unfinished six-panel doors in 2012 and a corresponding 10% decrease in sales of white six-panel doors.   He wonders if he lowered the price of the white six-panel doors to $120 each, that he may only see an 8% decline in sales of white six-panel doors and the corresponding increase in unfinished six-panel doors.
Required:
1. Prepare a 2012 sales budget assuming that Martin & Sons holds prices at the current level and sales quantity remains at the 2011 level.
White Six-Panel Doors: 4600 * $ 130 = $ 598,000
Unfinished Six-Panel Doors: 2,400 * $ 100 = $ 240,000
Total: $ 838,000
2. Prepare a 2012 sales budget assuming that Martin & Sons holds prices at the current level and the decrease in white six-panel doors is realized as is the increase in unfinished six-panel doors.
White Six-Panel Doors: (4600 – 460) * $ 130 = 4,140 * $ 130 = $ 538,200
Unfinished Six-Panel Doors: (2,400 + 360) * $ 100 = 2,760 * $ 100 = $ 276,000
Total: $ 814,200
3. Prepare a 2012 sales budget assuming that Martin & Sons lowers the price of white six-panel doors to $120 each and the decline in sales is as anticipated.
White Six-Panel Doors: (4600 – 368) * $ 120 = 4,232 * $ 120 = $ 507,840
Unfinished Six-Panel Doors: (2,400 + 288) * $ 100 = 2,688 * $ 100 = $ 268,800
Total: $ 776,640


4. Should Martin & Sons lower the price of the white six-panel doors to $120 each?
No, because they would see lower sales with a difference of $ 37,560. They will have $ 37,560 more in sales if they did not change the price.
5. Suppose...

Show More


Citations

MLA Citation

"Cost Accounting". Anti Essays. 15 Dec. 2018

<http://parimatch-stavka7.com/free-essays/Cost-Accounting-311596.html>

APA Citation

Cost Accounting. Anti Essays. Retrieved December 15, 2018, from the World Wide Web: http://parimatch-stavka7.com/free-essays/Cost-Accounting-311596.html


The Handmaid's Tale Season 3 torrent | 3×08 Crooked Steps | Terminada Twin Peaks 1990 - 1991