Extra Credit 1 Kim buys 1,000 rolls of luxury toilet paper for $20 per roll. The next week, toilet paper scarcity strikes the country, and he receives a one-time offer to sell his toilet paper for $25 per roll. If Kim accepts, by what percentage does he increase his money?  (1 bonus point)

Louis the Child manufactures Gold Body Glitter. For 2018, Louis the Child has budgeted 32,000 units of glitter to be manufactured. The company currently has machines in place that are able to manufacture 40,000 units, but will incur an additional $300,000 to manufacture anywhere from 40,001-65,000 units. Fixed costs, excluding the $300,000 are $127,360. Direct labor costs are $10 per unit, direct material costs are $15 per unit, and variable overhead costs are $20 per unit. 3) Ignore the ability to manufacture more than 40,000 units for $300,000. Kaskade approaches Louis the Child and wants to lease capacity from Louis the Child for $2 per unit. Kaskade is in direct competition with Louis the Child so Louis the Child expects its selling price to be $85 and demand to be 20,000 units as a result of Kaskade being in the market. Had Kaskade never entered the market, Louis the Child anticipated it could sell 30,000 units at $75 per unit. If Louis the Child rejects Kaskade’s offer, Kaskade will use another machine elsewhere. Assume Louis the Child does not desire to have any units in ending inventory at the end of the period. What should Louis the Child do with Kaskade’s offer?

Louis the Child manufactures Gold Body Glitter. For 2018, Louis the Child has budgeted 32,000 units of glitter to be manufactured. The company currently has machines in place that are able to manufacture 40,000 units, but will incur an additional $300,000 to manufacture anywhere from 40,001-65,000 units. Fixed costs, excluding the $300,000 are $127,360. Direct labor costs are $10 per unit, direct material costs are $15 per unit, and variable overhead costs are $20 per unit. 2) The marketing manager supplies the following information on demand levels at different prices: Selling price  per unit Demand in units 60 64,000 65 60,000 70 45,000 75 30,000 80 25,000 What selling price should the company charge in order to maximize operating income?

WQ7 Part 2 2. Step-down method (allocate Quality Assurance first). (2 points) The total support department costs allocated to consumer sales is [c] (2 points) The total support department costs allocated to corporate sales is [d] Note: Do not round any intermediary calculations; round your final answer to the nearest dollar (e.g., round $17.9 to $18). Only enter numeric values (do not enter dollar signs, commas, or letters).

  2) Using the stand-alone revenue-allocation method based on the cost of each book, what amount of revenue will be allocated to A Storm of Swords in the second package?

Extra Credit 3 Tear up the scratch paper one by one in a way that is clearly visible to the camera.   Failure to tear up the scratch paper will result in a zero on the exam. All scratch paper that you showed at the start of the exam must be torn up, even if they are blank.  By clicking “Yes” below, you acknowledge that you completely tore up all the scratch paper. In addition, you acknowledge that you have complied with all requirements of the exam and have not received aid from third parties. (1 bonus point)

WQ4 Part 2 (1 point) Assume that the selling price is actually $1 less than what you calculated in Part A. How much must fixed costs increase or decrease to maintain the same ROI calculated from Part A? (Enter negative values to indicate a decrease in fixed costs and positive values to indicate an increase).

City Wok is a Chinese catering company located in Colorado looking to evaluate the profitability of their customers. Currently, they allocate indirect costs to their customers arbitrarily. Under their current cost allocation method, City Wok has the following information:   Stan Eric Wendy Total Revenues $100,000 $250,000 $150,000 $500,000 Direct Costs 25,000 100,000 75,000 200,000 Customer Margin 75,000 150,000 75,000 300,000 Indirect Costs 65,000 35,000 100,000 200,000 After performing analyses, City Wok’s manager Tuong Kim determines that indirect costs are largely caused by the direct costs of each customer and decides to reallocate indirect costs based on this information. Which customer experiences the largest decline in customer income as a result of the new cost allocation, and by how much?

WQ1 (6 points) The Gem Theatre Co. has decided to analyze the profitability of 5 new customers. It buys bottled water at $12 per case and sells to retail customers at a list price of $14.40 per case.   Data pertaining to the five customers are as follows:     Its five activities and their cost drivers are as follows:    i.   Customer-level operating income for customer P is $[a] ii.  Customer-level operating income for customer Q is $[b] iii. Customer-level operating income for customer T is $[c] Note: Round your answer to the nearest integer. Do not enter dollar signs, commas, or decimals. Use negative numbers for customer-level operating losses.

Optional: You can show your work for Written Question 4 parts 1 through 3 below.