Continuing with the company selected in Unit 2, think about the types of financial data...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Continuing with the company selected in Unit 2, think about the types of financial data that would be included and excluded in differential analysis. Propose which specific revenues and costs should be considered in an evaluation to drop or keep a:
Customer
Product line
In addition, explain sunk and opportunity costs as they relate to your selected company. Should these costs be considered in differential analysis? Why or why not?
for a book publishing company, data from uni 2
NLC is a publisher of text books and decides to print an sell 8000 copies. The following variables will be included in the calculation of contribution margin and contribution margin ratio;
Fixe cost; training sessions6000, typesetting 36000, art work 2000, editing 4000
Variable expenses per book; printing and binding $3.00, book store discount 2.40, shipping cost $1.60, authors royalty $1
Each book sells at $ 20 per copy the contribution margin and contribution margin ratio will be calculated as follows;
Sales (8000 x $20). $160 000. 100%
Variable cost. (8000 x $8) $64 00040%
Contribution Margin. $96 000. 60%
Fixed cost. $48 000
Net income. $48 000
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
