Managerial accounting final project Coursework Example | Topics and Well Written Essays - 750 words

Managerial accounting final project - Coursework ExampleRequired 1. Prepare a right-hand(a) analysis of the changes in volume on direct income. Prepare a tabulated set of income statement at levels 200,000 250,000 and 300,000 yo-yo. Also show percentages of operate income in relation to sales. 2. Compare your tabulation with the managers tabulation. wherefore is the managers tabulation incorrect as the above? Answer1 Volume in Units 200,000 250,000 300,000 Sales $3 $600,000 $750,000 $950,000 Unit Variable Cost $1.40 $280,000 $350,000 $420,000 Contribution delimitation $320,000 $400,000 $530,000 indomitable be* $150,000 $150,000 $150,000 Operating Income $170,000 $250,000 $380,000 Operating Income Margin (%) 28.33% 33.33% 40% *Fixed Costs Fixed Manufacturing Costs $125000 Fixed Selling & Distribution Costs $25000 Fixed Costs $150000 Answer 2 The manager used $2.00 full cost per unit to calculate the jounce of changing sales volume over the operating income which is misleading . The effect of variable cost differs with the increase or decrease in sales volume which is best described and exposed in the contribution method. The operating income as calculated by the contribution method reveals the increase of operating profit at a different rate with respect to sales than the analysis created by the manager. As per the managers analysis, at 200,000 sales volume the operating profit to sales percentage rests at 33.33% whereas, our analysis reveal it to be at 28.33%. Hence, managers analysis shows an artificially better picture of income. On the other hand, operating income to sales ratio of 31.5% is misleading as it provides a deteriorated picture of the income/sales ratio. The actual operating income molding is 40% at 300,000 level of sales. Question 2 Chapter 6 Assume that XYZ company reports the following be to make 17.5oz bottles for its juice cocktails QYZ company Cost of making 17.5-ounce bottles Total Cost for 1,000,000 bottles Cost per Bottle now m aterials $80,000 $0.080 command labor 30,000 0.030 Variable factory overhead 60,000 0.060 Fixed factory overhead 85,000 0.085 Total Costs 255,000 $0.255 Another manufacturer offers to sell XYZ the bottles for $0.25. The capacity now used to make bottles will become barbaric if the company purchases the bottles. Further, one supervisor with a salary of $60,000, a fixed cost, would be eliminated if the bottles were purchased. Prepare enumeration that compares the costs to make and buy the 17.5-ounce bottles. Should XYZ make or buy the bottles? Answer Description Make taint Each bottle Total Each bottle Total Purchases Costs 0.25 250000 Direct Material 0.080 80000 Direct Labor 0.030 30000 VOH 0.060 60000 Fixed Factory OH 0.060 60000 Total Relevant Cost 0.23 230000 0.25 250000 Savings on Making 0.02 20000 closing curtain The company should make to save $20,000 as the analysis