# ACC403, Cost Behavior and Cost-Volume-Profit Analysis

ACC403, Cost Behavior and Cost-Volume-Profit Analysis

DUE: SUNDAY 01 0CTOBER 2017 @ 3:00 PM EST.

Don't use plagiarized sources. Get Your Custom Essay on
ACC403, Cost Behavior and Cost-Volume-Profit Analysis
Just from \$13/Page

Show computations in good format and explain answers as required. Write comments below the computations in Excel. MUST BE COMPLETED IN EXCEL.

Scenario A
Compute the break-even point in sales dollars if fixed costs are \$200,000 and the total contribution margin is 20% of revenue.

Show the analysis in an excel table format, and write a one-paragraph interpretation of the information presented in the table.

Scenario B
Danny Company makes and sells stuffed animals.  One product, Panda Bear, sells for \$28 per bear.  Panda Bears incur fixed costs of \$100,000 per month and a variable cost of \$12 per bear.  How many Panda Bears must be produced and sold each month to break even?

Show the analysis in an excel table format, and write a one-paragraph interpretation of the information presented in the table..

Scenario C
Jerry is considering buying a company if it will break even or earn net income on revenues of \$80,000 per month.  The company that Peter is considering sells each unit it produces for \$5.  Use the following cost data to compute the variable cost per unit and the fixed cost for the period.  Calculate the break-even point in sales dollars.  Should Jerry purchase this company?

Volume (units)     Cost
8,000                          \$70,000
68,000                       \$190,000

Show the analysis in an excel table format, and write a one-paragraph interpretation of the information presented in the table.

Scenario D
Reliable Delivery currently delivers packages for \$9 each. The variable cost is \$3 per package, and fixed costs are \$60,000 per month. Compute the break-even point in both sales dollars and units under each of the following independent assumptions. Comment on why the break-even points are different.

1. The costs and selling price are as just given.

2. Fixed costs are increased to \$75,000.

3. Selling price is increased by 10%. (Fixed costs are \$60,000.)

4. Variable cost is increased to \$4.50 per unit. (Fixed costs are \$60,000 and selling price is \$9.)

5. Show the analysis in an excel table format, and write a one-paragraph interpretation of the information presented in the table.

Calculator

Total price:\$26
Our features

## Need a better grade? We've got you covered.

STAY HOME, SAVE LIVES. Order your paper today and save 15% with the discount code FLIX