1. If Bodin Company plans to sell 480,000 units during the year, compute the number of units the firm would have to manufacture
during the year. Hilton, Ronald. Managerial Accounting: Creating Value in a Dynamic Business Environment (p. 405). McGraw-Hill Higher Education. Kindle Edition.
2 answers:
Answer:
A.
Bodin will have to manufacture 450,000 units and procure materials of 910units (if it plans to sell 480,000 units in the year)
B.
If it plans to sell 500,000 units however, it will have to produce additional stock of 470,000 units and procure materials of 950,000 units.
Explanation:
Production planning is a key requirement during the budget process
It works side by side with the sales budget. It is intended to fulfill the projected demand the business is positioning itself for in the period being reviewed.
It considers all levels of production needs in achieving each unit of production. Raw material, labour, conversion costs etc.
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Answer:
it will be a net loss of 560,000
It is better to produce at a loss of 60,000 than a loss of 620,000
That's because, the Division cover a good portion of their allocate fixed cost.
Explanation:
The fixed expense are allocate cost. Are unavoidable cost It will remain even if the division is dropped.
The sales and variable cost will be zero.
After posting the values, we calculate the differential income.
In this case it will be a loss for 560,000
Answer:
Explanation:
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