Here is the synopsis of our sample research paper on Accounting Questions. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 15 page paper answers a range of questions set by the student looking at the way variable costs and fixed costs can be budgeted, cost variances, product mix variances and an NPV and IRR calculation.
Page Count:
15 pages (~225 words per page)
File: TS14_TEquest19.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
unit units sold total cost Variable manufacturing costs 5 4000 20000 Fixed costs n/a n/a 10000 Cost of goods sold 30000 Variable marketing costs 1 4000 4000 Fixed
marketing n/a n/a 8000 Admin costs 12000 This will give us the following Revenue 80000 Cost of goods sold 30000 Gross profit 50000 Admin costs 12000 Net profit 38000
To consider the proposal of whether to accept an order for 500 units at $8 a unit we need to look at the
profitability of this order. For this we need to look at the marginal cost and the contrition. If we add the variable costs per unit together we get a cost
of $6 per unit. The company is already making a profit so if we look at marginal costs then we will get the following Revenue per unit 8 Cost
per unit 6 Contribution 2 As the overheads are paid this may be worth taking as there is a profit to be made
as long as this does not increase the fixed costs. However the impact will be to reduce the actual profit margin, as after the break even point the usual contribution
level is $14, so dropping this to $2 is quiet drastic. If we look at the impact this will have on profits the following would be seen. Revenue 84000
Cost of goods sold 32500 Gross profit 51500 Admin costs 13000 Net profit 38500 The profit increases by 500 but the profit margin decreases Sales profit profit margin Without
the new order 80000 38000 47.50% With the new order 84000 38500 45.83% However, if we look at a different form of accounting then we can also look at a
...