LE CHOICE. Choose the one alternative that best completes the statement or answe
ID: 2577067 • Letter: L
Question
LE CHOICE. Choose the one alternative that best completes the statement or answer the question. ) For which of the following decisions is absorption costing most appropriate? A) decisions related to setting sales prices in the long run B) decisions related to using the sales mix to maximize profitability C) decisions related to increasing contribution margin D) decisions related to controlling short-term costs 14) Write your answer in the space provided or on a separate sheet of paper 5) Sunrise Breakfast Foods, Inc. has two products-wafles and toaster pastries. Financial data for both the prod follows: Waffle $50 32 7% Pastrie $1,000 5% Sales commission(% of sales Sunrise has two sales representatives-lolana and Sachi. Each sales representative sold a total of 1,500 units the month of March. Ioana had a sales mix of 70% waffles and 30% pastries. Sachi had a sales mix of 60% waffles and 40% pastries which sales representative has the highest contribution ratio? Explain hnmon your answer. (Round your percent answers to two decimal places.) 16) For a merchandising company, what is the final step in the master budget process?!Explanation / Answer
Q-4 The answer is alternative D Because other three alternative will hold true in case of marginal costing Q-5 Sunrise Breakfast foods Computation of Contribution Ratio of Lolana Waffles Pastries Total Sales Qauntity in the ratio of 7:3 1050 450 1500 Sales Price per unit 500 1000 1500 Total Sales Value (A) 525000 450000 975000 Less : Variable cost= per unit*Quntity 336000 337500 673500 Sales commission= Rate*Sales Value 36750 22500 59250 Total Variable cost 372750 360000 732750 Contribution or Margin 152250 90000 242250 Contribution Ratio =margin/Sales Value 24.84615 % Computation of Contribution Ratio of Sachi Waffles Pastries Total Sales Qauntity in the ratio of 7:3 900 600 1500 Sales Price per unit 500 1000 1500 Total Sales Value (A) 450000 600000 1050000 Less : Variable cost= per unit*Quntity 288000 450000 738000 Sales commission= Rate*Sales Value 31500 30000 61500 Total Variable cost 319500 480000 799500 Contribution or Margin 130500 120000 250500 Contribution Ratio =margin/Sales Value 23.85714 % Lolana has the highest contribution ratio of 24.85% compared to Sachi who has 23.85%
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