Clevenger Co. planned to produce and sell 30,000 units with a selling price of $10 per unit. Variable costs are expected to be $4 per unit and fixed costs are expected to be $80,000. Clevenger actually produced and sold 37,000 units.Using a contribution margin format:Prepare a flexible budget income statement for the actual level of sales and production.
What will be an ideal response?
| Sales (37,000 units ? $10 each) …………………………… | $370,000 |
| Variable costs (37,000 ? $4 each). ……………………… | 148,000 |
| Contribution margin ……………………………………… | 222,000 |
| Fixed costs ……………………………………………… | 80,000 |
| Operating income ………………………………………… | $142,000 |
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Fill in the blank(s) with the appropriate word(s).
A profit-volume graph visually portrays the relationship between
A) total sales and total cost. B) profits and units sold. C) fixed costs and variable costs. D) total sales and units sold. E) operating income and variable costs.
Exhibit Duckett Group The Duckett Group is trying to determine its optimal average cash balance. The firm has determined that it will need $5,000,000 net new cash during the coming year. The fixed transaction cost of converting securities to cash is $50, and the firm earns 10 percent on its marketable securities investments. Refer to Exhibit Duckett Group. What will be the total cost to Duckett of maintaining the optimal average cash balance, as determined by the Baumol model?
A. $35,356 B. $7,071 C. $18,493 D. $70,711 E. $53,190
Which step of the Six Sigma DMAIC procedure monitors the process to make sure high performance levels are maintained?
A) Define B) Measure C) Analyze D) Improve E) Control