Lower contribution margin

Two products were sold. Total budgeted sales and actual total sales in number of units were identical to the units budgeted. Actual unit variable cost s and sales prices were the same as budgeted. Actual contribution margin was lower than budgeted. What could be the reason for the lower contribution margin?

Master Budget

List the features and advantages of a master budget. Also, distinguish between the components of master budget.

Different levels of automation for quality control inspection of production

We need to evaluate the different levels of automation for quality control inspection of production. Option 1: Manual - assign a number of employees along the conveyor belt to manually inspect and remove defective products. Option 2: Semi-automation - use fewer employees to inspect with less checkpoints required. Machine automatically removes defective products. Option 3: Full automation - purchase a state-of-the-art, fully automated machine that uses video cameras, a computer workstation, and small bursts of air. This new machine can automatically inspect and remove defective products. Initial costs of the options vary substantially: Option 1 Option 2 Option 3 Annual Fixe... click for more

Calculate breakeven and target profit volumes

JetSet Machinations, Inc; expects to become very successful in the manufacture and sales of its fuel-efficient high speed airplane, the S2S-900. This plane will be sold at about $70 million per plane. JMI executive staff has asked you to provide them a slide presentation in the next staff meeting which gives calculations for profit and break-even. This presentation will be the basis of the meeting discussion. Assume that JMI's annual fixed costs for the S2S-900 are $950 million, and its variable cost per airplane is $45 million. Question: 1. Compute JMI's break-even point for the number of S2S-900 airplanes and dollars of sales. 2. Suppose JMI plans to sell forty-two S2S-900 a... click for more

Use the financial statements below to answer questions 1-6 that follow.

Use the financial statements below to answer questions 1-6 that follow. Be sure to show your work and to indicate your final answers clearly. For ratios, indicate whether the answer is in percent (%), times (x), dollars ($), or some other units, and round to two decimal places. Assume the company uses a 360 day year for accounting and finance purposes. The company has no preferred stock. Balance Sheet Cash $ 20,000 Marketable Securities 80,000 Accounts Receivable 1,000,000 Inventory 3,500,000 Gross Plant & Equipment 5,000,000 Less: Accumulated Depreciation 2,000,000 Net Plant & Equipment 3,000,000 Total Assets $7,600,000 Accounts Payable $1,000,000 Accrued Expenses 200,000 No... click for more