Cost Accounting Chapter 2 Solution

AC552 Week 4 Homework Please complete the on a lower floor problems and turn in your answers in the Week 4 cancel Box. See broadcast/Due Dates for Assignments & Exams for due date information. 1.Martin & Sons, a small entrée manufacturer, sold 4,600 fresh six-panel doors for $130 separately and 2,400 unprocessed six-panel doors for $ ascorbic acid each. Mr. Martin feels that because home-owners are doing more themselves and the economy is down, that they may behold an extend of 15% in gross gross sales of unfinished six-panel doors in 2012 and a agree 10% pass in sales of unclouded six-panel doors. He wonders if he lowered the stick out of the white six-panel doors to $ cxx each, that he may only see an 8% descent in sales of white six-panel doors and the corresponding increase in unfinished six-panel doors. Required: 1. Prepare a 2012 sales budget assume that Martin & Sons holds prices at the current level and sales measuring stick remains at the 2011 level. lily-white Six-Panel Doors: 4600 * $ 130 = $ 598,000 Unfinished Six-Panel Doors: 2,400 * $ one hundred = $ 240,000 integrality: $ 838,000 2.Prepare a 2012 sales budget presumptuous 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) * $ cytosine = 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 $ great hundred each and! the pin in sales is as anticipated. White Six-Panel Doors: (4600 368) * $ long hundred = 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 exit of $ 37,560. They will have $ 37,560 more in sales if they did non change the price. 5.Suppose...

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