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CHAPTERS 6-12

Use the following to answer question 1:

Wright Cor oration!s "ontri#ution for$at in"o$e state$ent for last $onth a ears #elow%

Sales &'()***+ess ,aria#le e enses 2.)***Contri#ution $argin 1/)***+ess fi e0 e enses 12)***

et in"o$e &6)***

There were no #eginning or en0ing in,entories% The "o$ an ro0u"e0 an0 sol0 3)*** units 0uring the $onth% Ch. 9

1% 4f sales 0e"rease # (** units # ne t $onth) # how $u"h woul0 fi e0 e ensesha,e to #e re0u"e0 to $aintain the "urrent net in"o$e5

A &2)***7 &3)***C &6)***

8 &.)(**

Ch 6

2% The #rea9-e,en oint in sales for Ri"e Co$ an is &36*)*** an0 the "o$ an !s"ontri#ution $argin ratio is 3* % 4f Ri"e Co$ an 0esires an in"o$e of &/')***)sales woul0 ha,e to total

A &2/*)***%7 &(6*)***%C &6'*)***%8 &'/*)***%

Ch 6

3% The $argin of safet in the ;lahert Co$ an is &2')***% 4f the "o$ an !s salesare &12*)*** an0 its ,aria#le e enses are &/*)***) its fi e0 e enses $ust #e:

A &32)***%7 &16)***%C &/)***%8 &2')***%

Ch 6

'% +ast ear) Perr Co$ an re orte0 rofits of &')2**% 4t!s ,aria#le e enses totale0 &66)*** or &6 er unit% The unit"ontri#ution $argin was &3%**% The #rea9-e,en oint in units for Perr Co$ an is:

A 12)'**%7 11)***%C 22)***%8

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?ar"h '*)*** 13()***A ril 3()*** 12*)***?a '()*** 16*)***>une '*)*** 1'*)***

The "o$ an is in the ro"ess of re aring a "ash #u0get an0 $ust 0eter$ine the e e"te0 "ash "olle"tions # $onth% Tothis en0) the following infor$ation has #een asse$#le0:

Colle"tions on sales: 6* in $onth of sale3* in $onth following sale1* in se"on0 $onth following sale

The a""ounts re"ei,a#le #alan"e on >anuar 4 of the "urrent ear was &.*)***) of whi"h &(*)*** re resents un"olle"te08e"e$#er sales an0 &2*)*** re resents un"olle"te0 o,e$#er sales%

Ch 9

(% The total "ash "olle"te0 # +a=range Co$ an 0uring >anuar woul0 #e:A &'1*)***%7 &3'')***%C &331)(**%

8 &2(')***%

6% What is the #u0gete0 a""ounts re"ei,a#le #alan"e on >une 4 of the "urrent ear5A &6')***%7 &132)***%C &.6)***%8 &(6)***%

Ch 9

.% ;ri0en Co$ an has #u0gete0 sales an0 ro0u"tion o,er the ne t quarter as follows:

A ril ?a >une

Sales in units 1**)*** 12*)*** 5Pro0u"tion in units 1*')*** 12/)*** 1(6)***

The "o$ an has 2*)*** units of ro0u"t on han0 at A ril 1% A $ini$u$ of 2* of the ne t $onth!s sales nee0sin units $ust #e on han0 at the en0 of ea"h $onth% >ul sales are e e"te0 to #e 1'*)*** units% 7u0gete0 salesfor >une woul0 #e @in units :A 1/')***%7 16*)***%C 1//)***%8 12/)***%

Ch 9

/% ?ar le Co$ an !s #u0gete0 ro0u"tion in units an0 #u0gete0 raw $aterials ur"hases o,er the ne t three$onths are gi,en #elow:

>anuar ;e#ruar ?ar"h

7u0gete0 ro0u"tion @in units 6*)*** 5 1**)***7u0gete0 raw $aterials

ur"hases @in oun0s 12

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Two oun0s of raw $aterials are require0 to ro0u"e one unit of ro0u"t% The "o$ an wants raw $aterials onhan0 at the en0 of ea"h $onth equal to 3* of the following $onth!s ro0u"tion nee0s% The "o$ an ise e"te0 to ha,e 36)*** oun0s of raw $aterials on han0 on >anuar 1% 7u0gete0 ro0u"tion for ;e#ruarshoul0 #e:A /2)(** units%7 1(*)*** units%C .()*** units%8 1*()*** units%

Use the following to answer questions

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;or the $onth of A ril) a"tual 0ire"t la#or hours a$ounte0 to 2)***% 4n A ril) Thor !s stan0ar0 0ire"t la#or rate er hour was:A &'%(*%7 &'%.(%C &(%(*%8 &(%**%

Use the following to answer questions 13-1(:

The ?urra Co$ an $a9es an0 sells a single ro0u"t% The "o$ an re"or0e0 the following a"ti,it an0 "ost0ata for ?a :

u$#er of units "o$ lete0 '()*** unitsStan0ar0 0ire"t la#or-hours allowe0 er unit of ro0u"t 1%( 8+HS7u0gete0 0ire"t la#or-hours @0eno$inator a"ti,it .2)*** 8+HSA"tual fi e0 o,erhea0 "osts in"urre0 &66)***

olu$e ,arian"e &')2.( U

The fi e0 ortion of the re0eter$ine0 o,erhea0 rate is &*%

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Ch% 121.% Sales an0 a,erage o erating assets for Co$ an P an0 Co$ an B are gi,en #elow:

Sales A,erage erating Assets

Co$ an P &2*)*** &/)***Co$ an B &(*)*** &1*)***

What is the $argin that ea"h "o$ an will ha,e to earn in or0er to generate a return on in,est$ent of 2* 5A / an0 ' %7 ( * an0 1** %C 2%( an0 ( %8 12 an0 16 %

1/% A "o$ an ha0 the following results last ear: sales) &.**)***D return onin,est$ent) 2/ D an0 $argin) / % The a,erage o erating assets last ear were:

A &2)'(*)***%7 &2**)***%

C &2)(**)***%8 &('*)***%

1ul ) the "ontri#ution $arginin 8i,ision + was &6*)***% The "ontri#ution $argin ratio in 8i,ision ? was '*an0 its sales were &2(*)***% 8i,ision ?!s seg$ent $argin was &6*)***% The"o$$on fi e0 e enses were &(*)*** an0 the "o$ an net in"o$e was &2*)***%The seg$ent $argin for 8i,ision + was:

A &*%7 &6*)***%C &(*)***%8 &1*)***%

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12% C &(%(*%

13% 8 &6/)'**%

1'% 7 &6')12(%

1(% A &2)'** ;%

16% 8 &1*2)'**%

1.% A / an0 ' %

1/% 7 &2**)***%

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