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Posted: February 23rd, 2022
Managerial Accounting
Northern Attire Inc. is pondering of constructing a specialty parka for kids. The preliminary analysis has decided that the parka may promote for $195. Fastened manufacturing overhead is $140,000 per thirty days. Fastened promoting prices are $31,000 per thirty days. Variable prices to fabricate are estimated as follows:
| Direct supplies | $18.50 |
| Direct labour | 6.15 |
| Manufacturing overhead | 1.20 |
Variable promoting price is estimated at three.5% of gross sales.
Required:
- a) Calculate the break-even level in items and in .
- b) Calculate the brand new break-even level in items and gross sales for every of the next impartial conditions:
- i. Variable manufacturing prices elevated by 40%.
- ii. Fastened manufacturing overhead prices elevated by 25% and variable manufacturing prices elevated by 50%, apart from direct supplies, which doubled in value on account of an issue with importing leather-based. Variable promoting price elevated to four% of gross sales.
- iii. The estimated promoting value was overestimated, and the precise value is $150.
- c) Utilizing the revised estimates from half (b) (iii) as the most effective estimate, what’s the margin of security proportion if the corporate thinks it’s going to promote 2,000 items per thirty days?
- d) The administration accountant needs to offer the manufacturing division with related info for decision-making in relation to the manufacturing of this parka. Two of the important thing determination makers are the meeting supervisor and the vice-president of manufacturing. Distinction the knowledge wants of every of those people as they relate to the next:
- i. determination kind
- ii. info format
- iii. info supply
Please full a most 10 slide power-point presentation answering the above 4 questions plus connect an excel file with all of your supporting calculations.
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