Atkinson, Solutions Manual t/a Management Accounting, 6E

(c) (Small discrepancies in totals are due to calculations performed in a spreadsheet package.)
Valves:
per unit
costs

Pumps:
per unit
costs

Units

Valves
7,500

Sales

$592,500

$79.00

$875,000

$70.00

Flow
Contr.
4,000
$380,00
0

120,000
92,625
379,875

16.00
12.35
50.65

250,000
203,125
421,875

20.00
16.25
33.75

84,375
3,250
2,250

11.25
0.43
0.30

140,625
19,500
13,500

750
4,875
31,000
126,500
339,125

0.10
0.65
4.13
16.87
45.22

253,375
42.8%

33.78

Materials Expenses
DL Expenses
Contribution Margin
Manufacturing Overhead
Machine Expenses
Setup Labor
Machine Setup**
Receiving and Production
Control
Engineering
Packaging and Shipping
Total Manufacturing Overhead
Total costs
Gross Margin
Gross Margin/Sales %
Selling and Administrative Exps.
Operating Profit
Return on Sales

Pumps
12,500

FCs: per
unit
costs

Total

Unused
Capacity*

Actual

Percent
of Sales

$95.00

$1,847,500

$1,847,500

100%

88,000
52,000
240,000

22.00
13.00
60.00

$458,000
$347,750
$1,041,750

$3,250
-$3,250

$458,000
$351,000
$1,038,500

56%

11.25
1.56
1.08

27,000
87,750
60,750

6.75
21.94
15.19

$252,000
$110,500
$76,500

$6,300
$6,500
$0

$258,300
$117,000
$76,500

3,750
19,500
52,500
249,375
702,500

0.30
1.56
4.20
19.95
56.20

8,438
48,750
21,000
253,688
393,688

2.11
12.19
5.25
63.42
98.42

$12,938
$73,125
$104,500
$629,563
$1,435,313

$2,663
$4,875
$4,700
$25,038
$28,288

$15,600
$78,000
$109,200
$654,600
$1,463,600

172,500
19.7%

13.80

-13,688
-3.6%

-3.42

$412,188
22.3%

-$28,288

* See the following table.

**Machine Setup unused capacity is included with Machine Expenses unused capacity.

$383,900
20.8%
$350,000
$33,900
1.83%

35%

21%
19%
2%