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More info I ne rixed-cost allocation rate is based on expected sales and is therefore equal to $416,00026,000 books =$16 per book. Requirements 1. Calculate expected gross margin if Fran produces 26,000,32,500, or 33,800 books. (Make sure you include the production-volume variance as part of cost of goods sold.) 2. Calculate ending inventory in units and in dollars for each production level. 3. Managers who are paid a bonus that is a function of gross margin may be inspired to produce a product in excess of demand to maximize their own bonus. There are metrics to discourage managers from producing products in excess of demand. Do you think the following metrics will accomplish this objective? Show your work. a. Incorporate a charge of 15% of the cost of the ending inventory as an expense for evaluating the manager. b. Include nonfinancial measures when evaluating management and rewarding performance. Academia Press produces textbooks for high school accounting courses. The company recantly hired a new editoc, Fran Green, to handlo production and sales of bcoks for an introductory acoounting course. Fran's compensation depends on the gross margin associated with sales of this book. Fran neods to decide how many copies of the book to protuce The following information is avalable for the tall sernester 2020 : (i) (Click the icon to view the information.) Fran has decided to produce either 26,000,32,500, or 33,800 books Read the cepevirements: Requirement 1. Calculate expocted gross margin if Fran produces 26,000,32,500, of 33,800 books. (Make sure you include the production-volume variance as part of cost of goods sold.) Calculate the gross margin for each level of production. Begin with 25,000 bocks, then 32,500 books, and lastly 33,800 books. (Enter a "0" for any zero balance accounts. If an account doos not have a variance, do not select a labes.)

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