Show me how to post my homework

Just do my homework!

  • HTML tags will be transformed to conform to HTML standards.
  • Add rel="nofollow" to external links
Question
Submitted by neel on Sat, 2013-05-11 15:49
due on Wed, 2013-05-15 15:49
answered 3 time(s)
Hand shake with nikmigwi: In progress
Hand shake with 1HOMEWORKGENIUS: In progress
neel is willing to pay $25.00
neel bought 711 out of 1819 answered question(s)

Mendel Paper Company

Case: Mendel Paper Company

Mendel Paper Company produces four basic paper product lines at one of its plants: computer paper, napkins, place mats, and poster board. Materials and operations vary according to the line of product. The market has been relatively good. The demand for napkins and place mats has increased with more people eating out, and the demand for the other lines has been growing steadily.

The plant superintendent, Marlene Herbert, while pleased with the prospects for increased sales, is concerned about costs:

"We hear talk about a paperless office, but I haven't seen it yet. The computers, if anything, have increased the market for paper. Our big problem now is the high fixed cost of production. As we have automated our operation, we have experienced increases in fixed overhead and even variable overhead. And, we will have to add more equipment since it appears that we need even more plant capacity. We are operating over our normal capacity as it is.

The place mat market concerns me. We may have to discontinue printing the mats. Our specialty printing is driving up the variable overhead to the point where we may not find it profitable to continue with that line at all."

Cost and price data for the next fiscal quarter are as follows:

 

Computer paper

Napkins

Place mats

Poster board

Estimated sales volume in units

30,000

120,000

45,000

80,000

Selling prices................

     $14.00

      $7.00

     $12.00

      $8.50

Materials costs............

       6.00

       4.50

       3.60

        2.50

Variable overhead includes the cost of hourly labor and the variable cost of equipment operation. The fixed plant overhead is estimated at $420,000 for the quarter. Direct labor, to a large extent, is salaried; the cost is included as a part of fixed plant overhead. The superintendent's concern about the eventual need for more capacity is based on increases in production that may reach and exceed the practical capacity of 60,000 machine hours.

In addition to the fixed plant overhead, the plant incurs fixed selling and administrative expenses per quarter of $118,000.

"I share your concern about increasing fixed costs," the supervisor of plant operations replies. "We are still operating with about the same number of people we had when we didn't have this sophisticated equipment. In reviewing our needs and costs, it appears to me that we could cut fixed plant overhead to $378,000 a quarter without doing any violence to our operation. This would be a big help."

"You may be right," Herbert responds. "We forget that we have more productive power than we once had, and we may as well take advantage of it. Suppose we get some hard figures that show where the cost reductions will be made."

Data with respect to production per machine hour and the variable cost per hour of producing each of the products are given as follows:

 

Computer paper

Napkins

Place mats

Poster board

Units per hour

6

10

5

4

Variable overhead per hour

 $9.00

  $6.00

 $12.00

  $8.00

"I hate to spoil things," the vice-president of purchasing announces. "But the cost of our materials for computer stock is now up to $7. Just got a call about that this morning. Also, place mat materials will be up to $4 a unit."

"On the bright side," the vice-president of sales reports, "we have firm orders for 35,000 cartons of computer paper, not 30,000 as we originally figured."

Questions:

  1. From all original estimates given, prepare estimated contribution margins by product line for the next fiscal quarter. Also, show the contribution margins per unit.
  2. Prepare contribution margins as in part (1) with all revisions included.
  3. For the original estimates, compute each of the following:

    (a) Break-even point for the given sales mix.

    (b) Margin of safety for the estimated sales volume.
  4. For the revised estimates, compute each of the following:

    (a) Break-even point for the given sales mix.

    (b) Margin of safety for the estimated sales volume.
  5. Comment on Herbert's concern about the variable cost of the place mats.

 

Answer
Submitted by RSaleem on Mon, 2014-06-09 09:02
teacher rated 315 times
4.63492
purchased 2 times
price: $23.50

Mendel Paper Company

body preview (0 words)

file1.docx preview (668 words)

Mendel xxxxx Company

xxx xxxxxx Paper xxxxxxx xxx seen a relatively xxxxxx xxxxxx and xxx increase in xxxxxx xxx xxxx xx their xxxxxxxx xx x good sign xxx the xxxxxxx So far the biggest xxxxxxxx in xxxxxx xx xxx xxxxxxx xxx place mats, but this increase xx not xxxxxxx problems. The xxxx objective xx how xx xxx the xxxx cost of xxxxxxxxxx while xxxxxx more equipment xx xxx xxxx xxxxxx of xxxxxx xxx xxxxxxxxx xxxxxxxxx xxx xxxxxxxxxxxx xxx going xx xxxx determine the smartest way xx xxxxxxx with production xxx increased sales xxxxx xxxxxx xx xxxx xxxxx xx xxx xxxx time.

First, Mendel Paper xxxxxxx must xxxxxxxxx xxxxx xxxx are now in terms xx cost xxx budget for xxx next fiscal quarter. x xxxxx xxxxxxxx point is xx xxxxxxxxx the estimated margins by product line xxx the xxxx xxxxxx xxxxxxxx and xxxx the xxxxxxxxxxxx margins xxx unit. xxxx xxxx as x xxxxxxxxxxx of profitability xxxxxxxxxx contribution xxxxxx xxxx xxxxxxx xxxxx how xxxx xxxxxxxx impacts xxxxxxxxxxxxx xxxxxxxxx 2006). In xxxxx xx xx xxx xxxxxxxxx calculations are xxxxxxxxxx

xxxxxxxxxxxx xxxxxx x xxxxx xxxxxxx – Variable xxxxx / xxxxx Revenue

Computer Paper Napkins

30,000 – xxxx / xxxxxx xxxxxxx – xxxx x 120,000

x xxxx = xxxx

xxxxx xxxxxxxxxxxxxxxx Board

xxxxxx – 8.40 / 45,000 80,000 – x / 80,000

x xxxxxxxxxxxx 1.00

xxxxxxxxxxxx Margin xxx

- - - more text follows - - -

file2.xlsx preview (1268 words)

xxxxxxxx

xx xxx xxxx xxx formulas and any xxxxxxxxxxxxx xxxxxx xxx xxxxxxxxxxxxx xxxx and xxxxx xxxxxxxxxxx Key on xxx xxxxxxx
It xxxx show all xxxxxxxxxxxx xxx formulas xxxxxxxxxxxxx
xxxxxxxx :
xx xxxx xxxxx you are provided xxxxxxxxxxx regarding selling xxxxxx xxx xxxxx xx several xxxxxxxx xxxxxxx by Mendel Paper Company. In xxxxxxxxx xxxxxxxxxx xxx concerns xxxxx xxxxx xxx xxx xxxxxx costs. xxxxxxx xxx questions xxxxx xx the xxx xx the xxxxx Based xx the xxxx xxxxxxxxxx you xxx xxxxxxxx to provide x xxxxx xx xxxx double-spaced xxxxxxx report xxxxxxxxxx xxxxxxxxxx’x xxxxxxxxx The xxxxxxx xxxxxx should be properly xxxxxxxxx xxxxxxxxx xx xxx guidelines and xxxxxxxxxxx xxxxxxxx and critical thinking skills. Conclusions xxx recommendations should be xxxxxxxxx xx at least 2 xxxxxxxxx xxxxxxx from xxx xxxxxxx Library or xxxxx external sources, xxxxxxxxx the xxxxxxxxx For xxxxxxxxx x xxxxxxx xx xxx will xxxx to xxxxxxxx xxxxxxx xxxxxxxxxxxx – be sure to label and xxxxxxx identify

- - - more text follows - - -


Buy this answer

Try it before you buy it
Check plagiarism for $2.00

Answer
Submitted by Good_Morning on Wed, 2015-03-25 10:09
teacher rated 25 times
3.52
purchased one time
price: $10.00

Mendel Paper

body preview (2 words)

Mendel xxxxx

file1.xlsx preview (132 words)

xxxxxx

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Units xxx xxxx 6 10 5 4
xxxxxxxx overhead xxx xxxx $9.00 $6.00 xxxxxx $8.00
Comp Paper xxxxxxx xxxxx matsPoster xxxxxTotal
Volume xxxxx xxxxxx45000 80000
Selling xxxxx147128.5
material costx4.5 3.6xxx
Units per xxxx6 xx 5x
Variable xxxxxxxxx x 6xxx
Variable xxxxxxxxx xxx xxxx xxx xxxxxx x
xxxxx Sales xxxxxx 840000xxxxxx680000 2480000
Material xxxx 180000 540000162000 xxxxxx
Variable xxxxxxxxxxxxxx 72000xxxxxx xxxxxx
x
Contribution Marginxxxxxxxx$228,000 xxxxxxxx$320,000$1,013,000
xx per xxxx$6.50 $1.90$6.00 xxxxx
xxxx PaperNapkinsxxxxx xxxx xxxxxx Boardxxxxx
xxxxxxxxxxx xxxxxx45000 xxxxx
Selling xxxxxxx x xx8.5
material cost7 4.54 2.5
xxxxx per xxxx6xxxx
Variable xxxxxxxxx x6 12x
xxxxxxxx xxxxxxxxx per unitxxx0.6 xxx x
Total xxxxx xxxxxx xxxxxx xxxxxx6800002550000
xxxxxxxx cost 245000 xxxxxx xxxxxx 200000
xxxxxxxx xxxxxxxxx52500 xxxxx xxxxxx xxxxxx
x
xxxxxxxxxxxx Margin xxxxxxxx$228,000 xxxxxxxxxxxxxxxx xxxxxxxx
xx xxx unit$5.50xxxxx$5.60$4.00
3
xxxxx xxxx = CM xxxxxx$1,013,000
xxxxxx xx xxxxxx $1,467,000 xxxxxx
xxxxx xxx
x
xxxxx xxxx = xx xxxxxx$992,500
Margin xx Safety $1,557,500xxxxxx
Sales -CM
x
xxx xxxxxxx xx xxx xxxx xxxxxx the xxxxxx xx xxx xxxxxxx as the mat is generating contribution xxxxxx in both xxxxxx xx xxx as xxx
variable cost xx below the xxxxxxx xxxxxx the xxxxxxx xxxxxx xxx xx xxxxxxxxxxxx

xxxxxx

xxxxxx


Buy this answer

Try it before you buy it
Check plagiarism for $2.00

Answer
Submitted by neel on Sat, 2013-05-11 15:49
teacher rated 547 times
4.122485
purchased 11 times
price: $25.00

Answer rating (rated 2 times)

2.5

Mendel Paper Company

body preview (0 words)

file1.docx preview (140 words)

Running xxxx: MENDEL xxxxx xxxxxxx 1

MENDEL PAPER xxxxxxx

xxxxxx xxxxx xxxxxxx

xxxxxxx’s Name

xxxxxxxxxx’x Name:

May 11, xxxx

Mendel Paper xxxxxxx

xxxxxxxxx xxxxxxxxxxxx margins by product xxxx xxx the next xxxxxx quarter

xxxxxxxxxxxx margins xx xx xxxx xxx with all xxxxxxxxx xxxxxxxx

Break-even xxxxx for the xxxxx sales xxx

Break even for sales= CM

CM= xxxxxxxxxx

Margin of safety xxx the estimated xxxxx volume

Margin xx xxxxxxx $1,467,000

xxxxx 59.15%

Break-even xxxxx for xxx xxxxx sales xxx

Break even x xx xxxxxxx xxxxxxxx

Margin of xxxxxxx $1,557,500 61.08%

Conclusion

The xxxxxxx xx xxx xxxx xxxxxxxx the xxxxxx of Mendel Paper Company xx xxx is generating xxxxxxx xxxxxxxxxxxx xxxxxx in xxxx xxx cases. xx xxx as xxxxxxxx xxxx xxxxxxx below the xxxxxxx price, xxx product should xxx xx discontinued.

xxxxxxxxxx

Managerial Accounting: Manufacturing xxx xxxxxxx Application xxxxxxx San xxxxxx CA: xxxxxxxxxxx Education.

file2.xls preview (199 words)

Sheet1

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Units xxx xxxx x xx x x
Variable overhead xxx xxxx $9.00 $6.00 $12.00 xxxxx
xxxx xxxxxxxxxxxx xxxxx xxxx xxxxxx xxxxx Total
xxxxxxxxxxx xxxxxxxxxxxxxxxx
xxxxxxx pricexx7 xxxxx
xxxxxxxx cost6 xxx xxx2.5
xxxxx xxx xxxx 6 xx 5 4
Variable overheads 96 12 8
Variable xxxxxxxxx xxx unit 1.5xxx2.4 x
xxxxx Sales420000 xxxxxx xxxxxxxxxxxx 2480000
Material cost180000540000162000200000
Variable xxxxxxxxx45000xxxxx xxxxxxxxxxxx
1
xxxxxxxxxxxx Margin $195,000$228,000 xxxxxxxxxxxxxxxx $1,013,000
xx xxx xxxx x xxxx * xxxx* 6.00 * 4.00
xxxx Paper xxxxxxx xxxxx xxxxPoster xxxxxxxxxx
Volume 35000 xxxxxx xxxxx80000
Selling xxxxxxxx xx xxx
material xxxx 7xxx4xxx
Units per xxxx6 10x 4
Variable overheads 9x 12x
xxxxxxxx overheads per xxxxxxx xxx2.4 x
xxxxx Sales 490000xxxxxx xxxxxx xxxxxx xxxxxxx
xxxxxxxx xxxx245000540000180000200000
xxxxxxxx overheads52500 72000xxxxxx 160000
Answer 2
Contribution Margin xxxxxxxxxxxxxxxxxxxxxxxx $320,000xxxxxxxx
xx per unit x xxxx x 1.90* xxxx * 4.00
Answer 3
Break even x xx xxxxxx $1,013,000
Margin xx xxxxxxxxxxxxxxxx xxxxxx
xxxxx -CM
Answer 4
Break even = CM margin xxxxxxxx
Margin of Safety $1,557,50061.08%
Sales xxx
xxxxxx 5
The closure of mat xxxx reduce the profit of xxx company xx xxx mat xx generating xxxxxxxxxxxx xxxxxx xx xxxx xxxxxx xx far as xxx
xxxxxxxx cost xx xxxxx the xxxxxxx price, the xxxxxxx xxxxxx xxx be discontinue.

xxxxxx

x

Sheet3

x


Buy this answer

Try it before you buy it
Check plagiarism for $2.00