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14) The Maize Eagles are evaluating ticket prices for its basketball games. Studies show that Friday and Saturday night games average more than twice the fans of games on other days. The following information pertains to the stadium's normal operations per season: Average fans per game (all games)2,500 fans The stadium is.
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31) Stone and Bicker are starting a new business venture and are in the process of evaluating their product lines. Information for one new product, hand-made lamps, is as follows: Required: a.What are the estimated life-cycle revenues? b.What is the estimated life-cycle operating income if the product life cycle is one year? 32).
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Use the information below to answer the following question(s). Following a strategy of product differentiation, Luke Company makes a high-end Appliance, AP15. Luke Company presents the following data for the years 1 and 2. Year 1 Year 2 Units of AP15 produced and sold 20,000 21,000 Selling price $200 $220 Direct materials (square metres) 60,000 61,500 Direct materials costs per.
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Match each of the following balanced scorecard measures with the appropriate perspective. A) learning and growth perspective B) customer perspective C) financial perspective D) internal business process perspective 31) service response time Diff: 2    Type: MA Skill:  Understand Objective:  LO 13-3 32) market share Diff: 2   Type: MA Skill:  Understand Objective:  LO 13-3 33) gross margin percentage Diff: 2    Type: MA Skill:  Understand Objective:  LO 13-3 34).
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25) Brix, Inc., prepares frozen food for fast-food restaurants. It has two workstations, cooking and assembly. The cooking station is limited by the cooking time of the food. Assembly is limited by the speed of the workers. Assembly normally waits on food from cooking. Because the demand has increased in.
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  13.1   Explain how the relative strength of competitive forces help managers identify strategic alternatives. 1) Strategies have been classified in many different ways, but what is common is to set the business within its external environment. 2) Cost leadership is an organization's ability to offer products or services that are perceived by.
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18) The management accountant for the Chocolate S'more Company has prepared the following income statement for the most current year: ChocolateOther CandyFudgeTotal Sales$40,000$25,000$35,000$100,000 Cost of goods sold26,00015,00019,00060,000 Contribution margin$14,000$10,000$16,000$40,000 Delivery and ordering costs2,0003,0002,0007,000 Rent (per sq. metre used*)3,0003,0002,0008,000 Allocated corporate costs5,0005,0005,00015,000 Corporate profit$4,000$(1,000)$7,000$10,000 * The company pays for the entire space and allocates based on sq. metres used. Required: a.Do.
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A client in another province needs immediate help in solving a personnel training problem in the shipping department. Match each activity on the basis of its relationship with this consulting engagement. Items may have multiple classifications. A) Irrelevant Costs B) Opportunity Cost C) Opportunity, Irrelevant Costs D) Sunk Costs E) Relevant Costs F) Sunk, Irrelevant Costs 47).
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45) Steven Corporation manufactures fishing poles that have a price of $21.00. It has costs of $16.32. A competitor is introducing a new fishing pole that will sell for $18.00. Management believes it must lower the price to $18.00 to compete in the highly cost-conscious fishing pole market. Marketing believes.
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41) Ralph's Mufflers manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: Model XModel YModel Z Selling price$160$180$200 Direct materials606060 Direct labour ($20 per hour)303040 Variable support costs ($10 per machine-hour)102020 Fixed support costs404040 a.For each model, compute the contribution margin.
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Answer the following question(s) using the information below. Speedy Dress Manufacturing has two workstations, cutting and finishing. The cutting station is limited by the speed of operating the cutting machine. Finishing is limited by the speed of the workers. Finishing normally waits for work from cutting. Each department works an eight-hour.
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15) Hasselhoff Camera is considering eliminating Model EOS1 from its camera line because of losses over the past quarter. The past three months of information for model EOS1 is summarized below: Sales (1,000 units)$250,000 Manufacturing costs: Direct materials90,000 Direct labour ($15 per hour)80,000 Support100,000 Operating loss($20,000) Support costs are 70% variable and the remaining 30% is.
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12.4   Price products using the target-costing approach. 1) Value engineering is a time-and-motion system that can result in: improvements in product designs, changes in material specifications, or modifications in process methods. 2) Financial reporting systems emphasize cost incurrence by recognizing and recording costs only when a resource is sacrificed or consumed. 3) Locked-in.
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13.2   Understand reengineering. 1) Strategy requires integration of product and process development. 2) To achieve a cost leadership strategy companies may need to improve their internal production processes to increase yield. 3) Reengineering is the fundamental rethinking and redesign of business processes to achieve improvements in critical measures of performance such as cost,.
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32) Lewis Auto Company manufactures a part for use in its production of automobiles. When 10,000 items are produced, the costs per unit are: Direct materials$12 Direct manufacturing labour60 Variable manufacturing overhead24 Fixed manufacturing overhead32 Total$128 Monty Company has offered to sell Lewis Auto Company 10,000 units of the part for $120 per unit. The.
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27) Buck Corporation plans to grow by offering a computer monitor, the CM3000 that is superior and unique from the competition. Buck believes that putting additional resources into R&D and staying ahead of the competition with technological innovations are critical to implementing its strategy. Required: a.Is Buck's strategy one of product differentiation.
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11) Managers tend to favour the alternative that makes their performance look best. This leads to conflicts between which of the following? A) the status quo and the chosen alternative B) the decision model and the performance evaluation model C) the constraining factor and the performance evaluation model D) gathering the required information and.
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12.5   Price products using the cost-plus approach. 1) Including unit fixed costs for pricing is often used because of its simplicity. 2) The target rate of return on investment is the target operating income that an organization must earn divided by invested capital. 3) Survey evidence suggest that most companies use which type.
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11) Valley West Amusement Park is evaluating its ticket prices. It is open during the summer months for 15 weeks. The following information pertains to last year's tourist season. Costs are expected to remain the same for this year. Average tourists per day on Friday thru Tuesday2,500 Required: What is the unit cost.
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11.7   Appendix 11A: Linear Programming 1) Linear programming is a tool that maximizes total contribution margin of a mix of products with multiple constraints. 2) Which of the following is NOT one of the steps involved in linear programming? A) determining the objective B) determining the technical coefficients C) computing the optimal solution D) determining.
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12.2   Understand how companies make short-run pricing decisions. 1) Special orders increase income if the revenue from the order exceeds the incremental variable and fixed costs incurred to fill the order. 2) In deciding whether to accept a special sales order, any fixed costs that would remain unchanged are considered irrelevant data. 3).
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12.3   Understand how companies make long-run pricing decisions. 1) When prices are set in a competitive marketplace, product costs are the most important influence on pricing decisions. 2) Companies that produce high quality products do not have to pay attention to the actions of their competitors. 3) Relevant costs for pricing decisions.
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38) Nall Custom Pool Inc. needs 10,000 units of a certain part for its manufacturing process. It can buy the part from Wholesale Pool Supplies and Equipment for $53. Nall's plant can manufacture the part for the following costs per unit: Direct materials$6 Direct manufacturing labour24 Variable manufacturing overhead12 Fixed manufacturing overhead15 Total$57 If Nall buys.
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11.6   Explain why the book value of equipment is irrelevant in equipment replacement decisions. 1) The financial measures used to evaluate a manager's performance should be consistent with the decision model. 2) The gain or loss on the disposal of a machine is a relevant factor when considering replacing the machine if.
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11) Identify and explain Porter's Five Forces model. 12) Explain the product differentiation and the cost leadership strategies. 13) Bosely Corporation is reviewing its business strategy. The first step for Bosely is to evaluate the competitive environment. You have been hired to help the company go through the strategy formulation process. Required: To perform.
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Answer the following question(s) using the information below. After conducting a market research study, Schultz Manufacturing decided to produce a new interior door to complement its exterior door line. It is estimated that the new interior door can be sold at a target price of $60. The annual target sales volume.
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19) Schlickau Company manufactures basketball backboards. The following information pertains to the Output units15,000 boards Direct manufacturing labour per hour$12 Required: 20) Muskoka Travel offers guided tours through the lake system. Muskoka Travel provides a guide, necessary equipment, and food for a fee of $75 per person per day. Currently the company is.
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7) Local Steel Construction Company produces two products, steel and wood beams. Steel beams have a unit contribution margin of $200, and wood beams have a unit contribution margin of $150. The demand for steel beams exceeds Local Steel Construction Company's production capacity, which is limited by available direct labour.
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34) Ski Vallet provides materials that let people teach themselves how to snow ski. It has six different skill-level programs. Each one includes visual and audio learning aids along with a workbook that can be submitted to the company for grading and evaluation purposes, if the person so desires. The accounting.
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12.1   Discuss the major influences on pricing decisions. 1) The three major influences on pricing decisions are: costs, competitors, and customers. 2) Managers have little discretion in setting prices in market situations which are not competitive. 3) In less competitive markets where products can be differentiated by their features the pricing decision depends.
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Answer the following question(s) using the information below. After conducting a market research study, Potter Products decided to produce an electric coffee pot to complement its line of kitchen products. It is estimated that the new coffee pot can be sold at a target price of $46. The annual target sales.
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21) Measures of the balanced scorecard's customer perspective include all of the following EXCEPT A) market share. B) customer satisfaction. C) number of new customers. D) employee training on new products. E) number of repeat customers. 22) Measures of the balanced scorecard's internal business process perspective include all of the following EXCEPT A) operating capabilities. B) number of.
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Answer the following question(s) using the information below. Gerry's Generator Supply is approached by Mr. Gladstone, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. Gerry's Generator Supply has excess capacity. The following per unit data apply for sales to.
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12.6   Use life-cycle budgeting and costing when making pricing decisions. 1) A business that engages in predatory pricing violates Canadian law. 2) Dumping occurs when a company is trying to get rid of out-of-style products and substantially reduces their prices. 3) Collusive pricing occurs when companies in an industry conspire in their pricing.
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21) Knowledge Transfer Associates is in the process of evaluating its new client services for the business systems consulting division. A) $206,250 B) $162,500 C) $(43,750) D) $(87,500) E) $412,500 22) The life-cycle reporting process A) is the same as traditional accounting reporting. B) matches the company's normal fiscal year reporting. C) usually includes several accounting reporting periods. D).
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11.5   Explain the theory of constraints and how to manage "bottlenecks." 1) The theory of constraints describes methods of reducing bottlenecks by identifying and reducing fixed costs previously viewed as variable. 2) The theory of constraints analyzes fixed costs and considers short-run costs to be variable costs. 3) In a manufacturing operation, the.
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11) The theory of constraints is more useful than activity-based costing in long-run decisions. 12) A company would subordinate all bottleneck production to non-bottleneck machines when A) the bottleneck resource was temporarily unused. B) setup time on the non-bottleneck machine is higher than on the bottleneck machine. C) setup time on the non-bottleneck machine.
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11) A product's markup percentage would need to cover fixed manufacturing costs if A) the company has only fixed manufacturing costs. B) the company wants to break-even during the fiscal period. C) the company wants to make a profit. D) the cost base does not include fixed manufacturing costs. E) the cost base includes fixed.
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36) Ellingson Company has budgeted sales of $487,500 with the following budgeted costs: Direct materials$105,000 Compute the target profit percentage for setting prices as a percentage of: 37) Timothy Company has budgeted sales of $780,000 with the following budgeted costs: Direct materials$168,000 Compute the average markup percentage for setting prices as a percentage of:.
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24) At a management meeting, you just finished presenting your cost analysis report, showing unit costs last year for 60,000 widgets produced were $435.00. The sales manager then complained that she was going to lose a special overseas sale because the customer had indicated they could only pay $425.00. She.
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13.3   Understand the four perspectives of the balanced scorecard. 1) The accounting scorecard translates an organization's mission and strategy into a comprehensive set of performance measures that provides the framework for implementing its strategy. 2) The internal business process perspective focuses on internal operations that further both the customer perspective by creating.
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