Accounting Question (Managerial Accounting course)

G

Gon

Veteran XX
question:
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Now, for anybody who knows anything about managerial accounting and can actually help me and not just say, "that looks kinda right". How wrong is my answer:

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My problem is that there are no examples that are like this in the examples provided, so I don't know if I did it right. :-(

I'm not sure if I'm supposed to have all production in the new plant, or how to do the fixed cost for the new plant. I just guessed at the fixed cost for the new plant, really.
 
P.S.

I'm really certain I have the wrong fixed cost for calculating the needed number of units in the second plant.
 
sorry Gon, I would help you but American answers would be too confusing for a Canadian.



PS the Mormons keep asking me "When is Gon coming back, he was so nice? Quiet, but nice."
 
i was so scared when i was left alone with the 4 mormons

i don't think they realized the shirt i was wearing which said "CANADIAN" was a beer shirt that i got 4 free with a case of MOLSON CANADIAN
 
Haven't taken my managerial accounting yet, but did do some cost accounting. It seems to me like the Fixed cost is a straight $2000, regardless of the quantity of units sold.

All in all, without the use of my textbooks (stored away in the attic somewhere), your answer looks good to me. It has been 6 months since my last accounting class though.

Post the answer, I'd be interested to know.

And I'm not jewish, azn, or canadian either lol.
And this is SO not an economics course.
 
oh man when i woke up this morning i had the worst cramp ever in my leg and now my muslce is all fuxxzored up. my leg hurts and i can hardly walk.
 
I haven't taken managerial accounting in a few years, but from what I can tell, you're correct up until you move to the second plant.

You first have to calculate how much money you've lost at the main plant when you reach your capacity of 30,000 units (it looks to me like you lose $13,000 from the main plant). Then you have to apply that amount to the equation for the secondary plant to find the breakeven point.

However, this is all contingent on the assumption that you cannot utilize the second plant until the first plant reaches its capacity.

Edit: Ah, that's what you did. I don't see any glaring errors.
 
stone said:
I haven't taken managerial accounting in a few years, but from what I can tell, you're correct up until you move to the second plant.

You first have to calculate how much money you've lost at the main plant when you reach your capacity of 30,000 units (it looks to me like you lose $13,000 from the main plant). Then you have to apply that amount to the equation for the secondary plant to find the breakeven point.

However, this is all contingent on the assumption that you cannot utilize the second plant until the first plant reaches its capacity.

Edit: Ah, that's what you did. I don't see any glaring errors.
Click to expand...
Well the one calculation I did gets 13,000
(40,000+1.60*30,000-2.50*30,000)=13,000

then there's the 2,000 fixed cost for the secondary plant: 15,000

?????

edit: u edited
 
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