Managerial Accounting Questions (4 Total). Due by 2-17-2015

timer Asked: Feb 14th, 2015

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I’m working on a Accounting question and need guidance to help me study.

I have 4 questions that involve Accounting. I was wondering if you're interested. It's due by the end of 2/17/2015. Here is the 4 questions I included on Word. I posted this to the whole website and no one has taken it on to answer them. Unit3ManagerialAccounting.docx

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1. Alabama Corporation and California Corporation have the same sales and profits as follows: Alabama Sales Variable Costs Contribution Margin Fixed Costs Profit $1,000,000 600,000 400,000 200,000 200,000 California $1,000,000 400,000 600,000 400,000 200,000 Using an operating leverage analysis, determine how much profits would increase for each company if each experienced a 10% increase in sales. 2. Virginia, LLC, sells its product for $20 and incurs variable costs in producing that product of $8 per unit and total fixed costs of $10,000. Using the contribution margin ratio approach, calculate the number of units of the product that Virginia, LLC must sell to generate a profit of $14,400. 3. Georgia, Inc. and Florida Company both sell the same kinds of products. Sales and expenses for each company are: Sales Variable costs Fixed costs Profits Georgia, Inc. Florida Company $90,000 25,000 55,000 10,000 $90,000 55,000 25,000 10,000 Which of these companies have the highest operating leverage? Which of these companies has more financial risks? 4. Nevada Appliance Company uses a job-order costing system and allocates overhead based on the cost of the installer’s time. Annual installer’s time was estimated at the beginning of the year to be $400,000 for the year, and company overhead was estimated to be $200,000 for the year. If an installation job requires parts costing $100 and an installer’s time costs $200, what would be the total cost of the job in this job-costing system? In this case, why would using a predetermined overhead rate be better than assigning actual overhead costs to each installation job? ...
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