Student Name:
Class:
Part a.
1. The Container Division profits:
Sales Revenue
6,480$
Correct!
2. The Mixing Division profits:
Sales Revenue
3. The Corporation profits:
Sales Revenue
Correct!
Part b.
1.
Cases 400 800 1,200
Sales Revenue
Correct! Correct! Correct!
2.
Cases 400 800 1,200
Sales Revenue
Cases 400 800 1,200
Sales Revenue
Problem 15-36
McGraw-Hill/Irwin
Instructor
AMAZON BEVERAGES
Container Division Volumes
Total Price per
Price Case
2,880,000$ 7.20$
Total Price per
Price Case
2,400,000$ 6.00$
800,000
1,200,000
Total Price per
Price Case
1,800,000$ 4.50$
2,600,000 3.25
3,400,000 2.83
8,000,000$ 20.00$
Additional Information:
Volume
Sales
Price-demand relationship for finished product:
400,000 equivalent cases
800,000
1,200,000
AMAZON BEVERAGES
Mixing Division costs (in addition to bottle costs):
Volume
Volume
Volume
Container Division bottle production costs:
Competitive bottle prices:
400,000 equivalent cases
400,000 equivalent cases
400,000 equivalent cases
800,000
1,200,000
800,000
1,200,000
Student Name:
Class:
6,300,000$
630,000 5,670,000$
Leftover DLH units sold outside
Less material and out-of-pocket costs for outside sales
Total contribution margin
Labor costs
Correct!
6,075,000$
540,000 5,535,000$
Home Mobile Company
Cost of units transferred to Mobile
Cost of units purchased from outside by Mobile
Conversion cost in Mobile
Total sales
Cost of materials, etc. in Home
Cost of labor in Home
6,300,000$ 6,300,000$
2,278,125 2,278,125
15,300,000$ 15,300,000
Instructor
McGraw-Hill/Irwin
Problem15-39
ELSINORE ELECTRONICS
c. and d.
Part b. Home sells 75,000 units to Mobile
Part a. Home sells 87,500 units to outside
Outside sales revenue
Less material and out-of-pocket costs for outside sales
Units Transferred
Less material and out-of-pocket costs for units transferred
Sales by Home to outside
Sales by Home to Mobile
Sales by Mobile to outside
Leftover DLH Units transferred
Less material and out-of-pocket costs for units transferred.
Labor costs
Total contribution margin
72.00$
87,500
3
1
81.00$
75,000
84.00$
Mobile purchases from outside:
Additional labor and other costs
Selling price to consumer
Cost per unit
ELSINORE ELECTRONICS
Units sold to Mobile:
Home Audio Players:
Selling price per unit
Number of units market can absorb
Direct labor-hours required per unit
Additional labor-hours required
Selling price per unit
Annual maximum sales to AE (units)
Home Costs:
Fixed costs
Cost per direct labor-hour
Materials and other variable costs per unit
Annual production capacity (direct labor-hours)
Student Name:
Class:
Bus Ticket
Charters Lodging Concerts Services
Ticket commissions:
Bus
Concerts
Lodging
Total costs
Operating profits
12,250$ 5,300$ 4,450$ 1,600$
1,300
1,300
350
150
Bus Ticket
Charters Lodging Concerts Services
Hotel awards
Concert discounts
Operating profits
4,500$ 850$ 1,600$ 450$
Correct! Correct! Correct! Correct!
Bus Ticket
Charters Lodging Concerts Services
ROI for part (b)
ROI for part (a)
Instructor
McGraw-Hill/Irwin
Problem 15-44
MIDWEST ENTERTAINMENT
Part c. All input in thousands (000’s dropped)
Part b. All input in thousands (000’s dropped)
Part a. All input in thousands (000’s dropped)
Outside revenue
Hotel award coupons
Crew lodging
Hotel award coupons
Concert discounts (bus)
Operating profits
Concert discounts (lodging)
Concert discounts (bus)
Concert discounts (lodging)
Crew lodging
Ticket commissions:
Bus
Concerts
Total revenues
Outside costs
Lodging
Bus Ticket
Charters Lodging Concerts Services
Revenues 12,250$ 5,300$ 4,450$ 1,600$
Costs 7,850 3,550 3,300 1,500
1,300,000$
47,750$
Ticket Services
MIDWEST ENTERTAINMENT
Outside transactions for past year:
Retail value of travel traded for lodging award coupons
Additional Information:
Bus Charters
Assets for each division (000’s):
Value if using differential and opportunity costs
Retail value of concert discounts to bus passengers
Value if using differential and opportunity costs
Retail value of concert discounts to lodging guests
Retail value of rooms used by Bus Charter employees
Chartered tours sold by Ticket Services Division
Value of ticketing services for intracompany lodging
Value of ticketing services for concerts