Practice computations chapter 10 problem essay

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Problem 12-34-1. Gross perimeter is computed as major profit as well as revenue.

Item a

Product B

Merchandise C

Merchandise D

Low Margin

12, 000 / 32, 1000 = 37. 5%

17, 600 as well as 88, 1000 = 20%

56, 500 / 280, 000 = 20%

63, 000 / 144, 1000 = 43. 75%

The merchandise that is the most profitable is usually Product D.

2 . The ultimate way to start this question is to figure out the retail price and COGS per device for each product. For Merchandise a, the purchase price was $32, 000 / 2900 sama dengan $11. 03 and the COGS per unit is $6. 89. Pertaining to Product B, the price every unit is $20. 46 and the COGS per device is $16. 37. For Product C. The price every unit is $51. thirty seven and the COGS per device is $41. 10. To get Product Deb. The price per unit is definitely $90 and the COGS per unit is usually $50. 63.

The next step is to create an income assertion for each customer type.

Difficulty 12-34

Item a

W

C

D

Price

$11. 03

20 dollars. 47

$51. 38

$90. 00

COGS

$6. 80

$16. thirty seven

$41. twelve

$50. 63

Customer a

Customer B

Customer C

Revenue

$42, 822

$141, 384

$359, 793

COGS

$25, 322

$91, 759

$278, 319

Gross Income

$17, 501

$49, 625

$81, 474

Gross Margin

40.???

35. 10%

22. 64%

The most lucrative customer is Customer a.

The cost to serve % of sales is based on the $140, 000 cost to serve expenditure, which is allotted on the basis of product sales. This is worked out as follows:

Customer a

Customer B

Customer C

% of sales

7. 87%

25. 00%

66. 14%

Cost to Serve

$11, 020

$36, 386

$92, 594

These are the cost to serve percentage of sales. The most expensive buyer to provide is consumer C. This is also the customer while using lowest margins, but the top dollar benefit of revenue. However , almost all have the same cost-to-serve as a percentage of revenue, because cost-to-serve is allocated as a percentage of sales. The physique is 25. 74%.

I’m afraid I actually do not really recognize that chart, and can’t generate Excel pull it. The response to the query is actually straightforward, however. The ultimate way to increase the earnings for every consumer is to increase the percentage of Product Deb. that is marketed. This is the highest margin item, so the associated with that merchandise that is offered the better the perimeter for each client will be. To get Customer C, the low margin is extremely low.

Difficulty 12-35

1 ) Using the physical units approach, Solvent a would have 9000/15000 = 60% and Solvent B. may have 40%. This provides the following cost allocations:

Solvent a = 60% 5. $300, 500 = $180, 000

Solvent B sama dengan 40% 2. $300, 500 = $120, 000

installment payments on your Using the relative sales worth method, we should calculate the sales value of each merchandise. Solvent a = $30 * 9000 = $270, 000 and Solvent B = $45 * 6000 = $270, 000 therefore 50% each.

Solvent a = fifty percent * three hundred, 000

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