Acc403, cost behavior and cost-volume-profit analysis

ACC403, Cost Behavior and Cost-Volume-Profit Analysis 

DUE: SUNDAY 01 0CTOBER 2017 @ 3:00 PM EST.

Show computations in good format and explain answers as required. Write comments below the computations in Excel. MUST BE COMPLETED IN EXCEL.

Scenario A

Compute the break-even point in sales dollars if fixed costs are $200,000 and the total contribution margin is 20% of revenue. 

Show the analysis in an excel table format, and write a one-paragraph interpretation of the information presented in the table.

Scenario B 

Danny Company makes and sells stuffed animals.  One product, Panda Bear, sells for $28 per bear.  Panda Bears incur fixed costs of $100,000 per month and a variable cost of $12 per bear.  How many Panda Bears must be produced and sold each month to break even?

Show the analysis in an excel table format, and write a one-paragraph interpretation of the information presented in the table..

Scenario C

Jerry is considering buying a company if it will break even or earn net income on revenues of $80,000 per month.  The company that Peter is considering sells each unit it produces for $5.  Use the following cost data to compute the variable cost per unit and the fixed cost for the period.  Calculate the break-even point in sales dollars.  Should Jerry purchase this company?

Volume (units)     Cost

8,000                          $70,000

68,000                       $190,000

Show the analysis in an excel table format, and write a one-paragraph interpretation of the information presented in the table.

Scenario D

Reliable Delivery currently delivers packages for $9 each. The variable cost is $3 per package, and fixed costs are $60,000 per month. Compute the break-even point in both sales dollars and units under each of the following independent assumptions. Comment on why the break-even points are different.

1. The costs and selling price are as just given.

2. Fixed costs are increased to $75,000.

3. Selling price is increased by 10%. (Fixed costs are $60,000.)

4. Variable cost is increased to $4.50 per unit. (Fixed costs are $60,000 and selling price is $9.)

5. Show the analysis in an excel table format, and write a one-paragraph interpretation of the information presented in the table.

Need your ASSIGNMENT done? Use our paper writing service to score better and meet your deadline.


Click Here to Make an Order Click Here to Hire a Writer