Managerial Accounting



Item Name

Apache Junction Company is evaluating a capital expenditure prop

Apache Junction Company is evaluating a capital expenditure proposal that requires an initial investment of $9,350, has predicted cash inflows of $2,000 per year for 15 years, and has no salvage value. Required a. Using a discount rate of 16 percent, determine the net present value of the investment proposal. b. Determine the proposal's internal rate of return. (Refer to Appendix 12B if you use...

Aristocrat Tableware manufactures quality place settings (knives

Aristocrat Tableware manufactures quality place settings (knives, forks, spoons). Presented is information regarding predicted annual manufacturing overhead costs at capacity: In 2009 Aristocrat produced 12,000 units of the Plutocrat line in two jobs. Direct costs of these two jobs were materials costs of $33,000 and direct labor costs of $5,500. The following information is available regarding...

Art Conroy is the assistant controller of New City Muffler,

Art Conroy is the assistant controller of New City Muffler, Inc., a subsidiary of New City Automotive, which manufactures tailpipes, mufflers, and catalytic converters at several plants throughout North America. Because of pressure for lower selling prices, New City Muffler has had disappointing financial performance in recent years. Indeed, Conroy is aware of rumblings from corporate...

Assessing the Impact of an Incentive Plan Overview Ladbrecks is

Assessing the Impact of an Incentive Plan Overview Ladbrecks is a major department store with fifty retail outlets. The company's stores compete with outlets run by companies such as Nordstrom, Macys, Marshall Fields, Bloomingdales and Saks Fifth Avenue. During the early nineties the company decided that providing excellent customer service was the key ingredient for success in the retail...

Assume a division of Hewlett-Packard currently makes 10,000 circ

Assume a division of Hewlett-Packard currently makes 10,000 circuit boards per year used in producing diagnostic electronic instruments at a cost of $32 per board, consisting of variable costs per unit of $24 and fixed costs per unit of $8. Further assume Sanmina-SCI offers to sell Hewlett-Packard the 10,000 circuit boards for $32 each. If Hewlett-Packard accepts this offer, the facilities...

Assume a local Cost Cutters provides cuts, perms, and hairstylin

Assume a local Cost Cutters provides cuts, perms, and hairstyling services. Annual fixed costs are $120,000, and variable costs are 40 percent of sales revenue. Last year's revenues totaled $240,000. Required a. Determine its break-even point in sales dollars. b. Determine last year's margin of safely in sales dollars. c. Determine the sales volume required for an annual profit of $70,000.

Assume a Papa John's Pizza shop has the following monthly

Assume a Papa John's Pizza shop has the following monthly revenue and cost functions: (PZZA) Total revenues = $12.00X Total costs = $18,000 + $3.00X Required a. Prepare a graph (similar to that in Exhibit 3.3) illustrating Papa John's cost-volume-profit relationships. The vertical axis should range from $0 to $72,000, in increments of $12,000. The horizontal axis should range from 0 units to...

Assume a Papa John's restaurant has the following information av

Assume a Papa John's restaurant has the following information available regarding costs at representative levels of monthly sales: Required a. Identify each cost as being variable, fixed, or mixed. b. Use the high-low method to develop a schedule identifying the amount of each cost that is fixed per month or variable per unit. Total the amounts under each category to develop an equation for total...

Assume information pertaining to Callaway Golf Company for April

Assume information pertaining to Callaway Golf Company for April 2009 follows. Sales ………………………………………….. $200,000 Purchases Raw materials ………………………….. 37,000 Manufacturing supplies ………………... 800 Office supplies …………………………. 500 Salaries (including fringe benefits) Administrative ………………………….....

Assume Michelle Jones has just been promoted to product manager

Assume Michelle Jones has just been promoted to product manager at Procter & Gamble. Although she is an accomplished sales representative and well versed in market research, her accounting background is limited to reviewing her paycheck, balancing her checkbook, filing income tax returns, and reviewing the company's annual income statement and balance sheet. She commented that while the financial...