The standard production cost of making a product is as follows:
What is the fixed production overhead capacity variance?
Explain why sensitivity analysis is useful when dealing with uncertainty in project
Select all the true statements.
Information about a company's two products is as follows:
The products are currently sold in equal quantities.
Monthly fixed costs are $360,000.
What is the monthly breakeven sales revenue assuming a sales quantity mix of 50/50?
Give your answer to the nearest $.
A bakery manager is deciding how many batches of birthday cakes to decorate each day.
Demand for the birthday cakes varies from 12 to 15 batches per day. Each batch decorated and sold earns a contribution of $40 but each batch unsold leads to loss of contribution of $15.
The payoff table below shows the total $ contribution from each of the possibilities:
Based on expected values, the number of batches of birthday cakes the bakery manager should decorate each day is: