Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
6th Edition
ISBN: 9780134486857
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 21, Problem 12SE
To determine
Calculate contribution margin per customer and the contribution margin ratio and identify the type of service that is more profitable.
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Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: (See attached image for data and question formatting)
ONLY NEED QUESTION 3!
3) Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products.
Nation's Capital Fitness, Incorporated, operates a chain of fitness centers in the Washington, D.C., area. The firm's
controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern
of the firm's equipment maintenance costs must be determined. The accounting staff has suggested the use of an
equation, in the form of Y= a + bx, for maintenance costs. Data regarding the maintenance hours and costs for last year
are as follows:
Month
January
February
March
April
May
June
July
August
September
October
November
December
Total
Average
Hours of
Maintenance
Service
560
480
280
470
350
460
320
430
490
380
350
340
4,910
409
Maintenance cost
Maintenance
Costs
$ 5,110
4,240
2,730
4,300
3,030
4, 120
3,000
3,590
4,000
3,220
3,170
3,070
$ 43,580
$ 3,632
PR 6-38 (Algo) Part 3 Compute the predicted maintenance cost...
3. Compute the predicted maintenance cost at 670 hours of activity.
Answer is complete but not entirely correct.
$
49,192 X
Nation's Capital Fitness, Incorporated, operates a chain of fitness centers in the Washington, D.C., area. The firm's
controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern
of the firm's equipment maintenance costs must be determined. The accounting staff has suggested the use of an
equation, in the form of Y= a + bX, for maintenance costs. Data regarding the maintenance hours and costs for last year
are as follows:
Month
January
February
March
April
May
June
July
August
September
October
November
December
Total
Average
Hours of
Maintenance
Service
Variable maintenance cost
560
480
280
470
350
460
320
430
490
380
350
340
4,910
409
$
Maintenance
Costs
$ 5,110
4,240
2,730
4,300
3,030
4, 120
PR 6-38 (Algo) Part 2 What is the variable component of the maintenance cost?
2. Using your answer to requirement 1, what is the variable component of the maintenance cost?
Note: Round your answer to 2 decimal places.
3,000
3,590…
Chapter 21 Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Ch. 21 - Pierce Company had the following costs: Calculate...Ch. 21 - Hayden Company has 50 units in Finished Goods...Ch. 21 - The Stark Company manufactures a product that is...Ch. 21 - Chaney Company provides lawn care services....Ch. 21 - Prob. 1QCCh. 21 - Prob. 2QCCh. 21 - Donovan Company incurred the following costs while...Ch. 21 - Donovan Company incurred the following costs while...Ch. 21 - Donovan Company incurred the following costs while...Ch. 21 - Donovan Company incurred the following costs while...
Ch. 21 - Donovan Company incurred the following costs while...Ch. 21 - Prob. 8QCCh. 21 - Prob. 9QCCh. 21 - Prob. 10QCCh. 21 - What is absorption costing?Ch. 21 - What is variable costing?Ch. 21 - How are absorption costing and variable costing...Ch. 21 - Prob. 4RQCh. 21 - Prob. 5RQCh. 21 - When units produced are less than units sold, how...Ch. 21 - Explain why the fixed manufacturing overhead cost...Ch. 21 - Prob. 8RQCh. 21 - Prob. 9RQCh. 21 - Prob. 10RQCh. 21 - Why is it appropriate to use variable costing when...Ch. 21 - Prob. 12RQCh. 21 - Prob. 13RQCh. 21 - Prob. 14RQCh. 21 - Prob. 15RQCh. 21 - How can variable costing be used in service...Ch. 21 - Classify each cost by placing an X in the...Ch. 21 - Martin Company had the following costs: Calculate...Ch. 21 - Martin Company had the following costs: Calculate...Ch. 21 - Dracut Company reports the following information...Ch. 21 - Dracut Company reports the following information...Ch. 21 - Adamson, Inc. has the following cost data for...Ch. 21 - Refer to your answers to Short Exercise S21-6....Ch. 21 - Refer to your answers to Short Exercise S21-6....Ch. 21 - Prob. 9SECh. 21 - Prob. 10SECh. 21 - Prob. 11SECh. 21 - Prob. 12SECh. 21 - Meyer Company reports the following information...Ch. 21 - Concord, Inc. has collected the following data for...Ch. 21 - Concord, Inc. has collected the following data for...Ch. 21 - ReVitalAde produced 13,000 cases of powdered drink...Ch. 21 - Refer to Exercise E21-16. Requirements 1. Prepare...Ch. 21 - Prob. 18ECh. 21 - Refer to your answers to Exercise E21-16. In May...Ch. 21 - Refer to Exercise E21-19. Requirements 1. Prepare...Ch. 21 - The Sweet Treats Company manufactures candy that...Ch. 21 - Sampler Company sells two products, Sigma and...Ch. 21 - Prob. 23ECh. 21 - Prob. 24ECh. 21 - Sherman Company provides carpet cleaning services...Ch. 21 - Prob. 26ECh. 21 - Prob. 27APCh. 21 - Prob. 28APCh. 21 - Relative Furniture Company manufactures and sells...Ch. 21 - Prob. 30APCh. 21 - Professional Pool Cleaning Service provides pool...Ch. 21 - Prob. 32BPCh. 21 - Game Source manufactures video games that it sells...Ch. 21 - Prob. 34BPCh. 21 - The 2018 data that follow pertain to Elis Electric...Ch. 21 - Divine Pool Cleaning Service provides pool...Ch. 21 - Prob. 37PCh. 21 - This problem continues the Piedmont Computer...Ch. 21 - CF Industries Holdings, Inc. is one of the largest...Ch. 21 - The Hurley Hat Company manufactures baseball hats....Ch. 21 - Sampson Company operates a manufacturing facility...Ch. 21 - In 100 words or fewer, explain the main...
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