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## Variable Cost Essays and Research Papers

### Title: The firm 50 000 workers produce 200 000 units output day The daily wage worker 80 price firms output 25 The cost variable inputs 400 000 day Assume total fixed cost equals 1 000 000 Calculate values formulas Total Variable Cost Number Workers Workers Daily Wage Other Variable Costs Average Variable Cost Total Variable Cost Units Output Day Average Total Cost Total Variable Cost Total Fixed Cost Units Output Day Worker Productivity Units Output Day Number Workers Then assume total fixed cost equals 3 000 000 recalculate values variables listed

Total Pages: 2 Words: 447 References: 2 Citation Style: APA Document Type: Essay

Essay Instructions: The firm currently uses 50,000 workers to produce 200,000 units of output per day. The daily wage per worker is \$80, and the price of the firm?s output is \$25. The cost of other variable inputs is \$400,000 per day.

Assume that total fixed cost equals \$1,000,000. Calculate the values for the following four formulas:
?Total Variable Cost = (Number of Workers * Worker?s Daily Wage) + Other Variable Costs
?Average Variable Cost = Total Variable Cost / Units of Output per Day
?Average Total Cost = (Total Variable Cost +Total Fixed Cost) / Units of Output per Day
?Worker Productivity = Units of Output per Day / Number of Workers
Then, assume that total fixed cost equals \$3,000,000, and recalculate the values of the four variables listed above.
For both cases, calculate the firm?s profit or loss.

For both sets of calculations, compare the firm?s output price and the calculated average variable cost and average total cost. Should the firm shutdown immediately when the total fixed cost equals \$1,000,000? Should the firm shut down immediately when the total fixed cost equals \$3,000,000?

For one of the cases, if the firm can operate at a loss in the short-run, how many employees need to be laid off in order for the company to break even? To calculate the number of workers to be laid off, divide the loss for the two situations by the daily wage per worker. Given a lower number of employees now working at the company, what is the change in worker productivity? Is the change in worker too large, and the firm should shut down immediately? Or in your opinion, can the workers increase their productivity, assuming that the units of output per day remain fixed at 200,000 units, so that the firm operates at a breakeven state?

Provide a two to four page report to management of the firm that discusses what should be done.
Be sure to show your work to support the decision you outline in your report.

Excerpt From Essay:

### Title: Costing Financial Accounting-Variable Costing How is managerial

Total Pages: 3 Words: 990 Works Cited: 0 Citation Style: MLA Document Type: Research Paper

Essay Instructions: TUIU
ACC403 (Financial Accounting ? Variable Costing)
Module 4 CASE

Requires the use od the Module 4 SLP attached

Financial Accounting ? Variable Costing
Managerial accounting emphasizes short-term profit analysis, so the income statement is very important. Consequently, we?ll examine and discuss income statements in this first case. The assignment for this module is divided into two parts:
Part I:
Use the background material and Internet to answer the questions below.
Discuss and analyze the difference between managerial and financial accounting. Pay particular attention to:
? How is managerial accounting different from financial accounting?
? Comment on the different needs and use of financial information for internal purposes.
? The managerial accounting profession and its role in today?s business environment. How has it changed over time?
? Comment on the Certified Management Accountant (CMA) designation. How is it different from the CPA certification?
Part II:
You may want to complete the SLP before addressing the questions below.
? Explain the main differences between the absorption and contribution (behavioral, variable) income statements. Will net income always be the same under the two approaches? If not, explain the difference.
? Comment specifically on why companies feel the need to create yet another income statement in a different format. What information can the company gleam from this approach which is helpful as a tool in the decision making process.
? Explain situations in which break-even analysis can be a useful tool. Explain the break-even formula and provide a specific example using numbers for a product with which you are familiar. Reasonable estimates are adequate. Don't forget to include the source of the information.
Modular Case Expectations

It is important to answer the questions as posed. Support your discussion with references in APA format. You are encouraged to use Excel or other compatible spreadsheet when computations are involved.

Excerpt From Essay:

### Title: Management of the Firm

Total Pages: 3 Words: 1275 Bibliography: 3 Citation Style: APA Document Type: Essay

Essay Instructions: The firm currently uses 50,000 workers to produce 200,000 units of output per day. The daily wage per worker is \$80, and the price of the firm’s output is \$25. The cost of other variable inputs is \$400,000 per day.

Assume that total fixed cost equals \$1,000,000. Calculate the values for the following four formulas:
•Total Variable Cost = (Number of Workers * Worker’s Daily Wage) + Other Variable Costs
•Average Variable Cost = Total Variable Cost / Units of Output per Day
•Average Total Cost = (Total Variable Cost +Total Fixed Cost) / Units of Output per Day
•Worker Productivity = Units of Output per Day / Number of Workers
Then, assume that total fixed cost equals \$3,000,000, and recalculate the values of the four variables listed above.
For both cases, calculate the firm’s profit or loss.

For both sets of calculations, compare the firm’s output price and the calculated average variable cost and average total cost. Should the firm shutdown immediately when the total fixed cost equals \$1,000,000? Should the firm shut down immediately when the total fixed cost equals \$3,000,000?

For one of the cases, if the firm can operate at a loss in the short-run, how many employees need to be laid off in order for the company to break even? To calculate the number of workers to be laid off, divide the loss for the two situations by the daily wage per worker. Given a lower number of employees now working at the company, what is the change in worker productivity? Is the change in worker too large, and the firm should shut down immediately? Or in your opinion, can the workers increase their productivity, assuming that the units of output per day remain fixed at 200,000 units, Be sure to show your work to support the decision you outline in your report.

so that the firm operates at a breakeven state?

Excerpt From Essay:

### Title: Module 5 SLP Managerial Accounting Budgeting Differential analysis involves knowing costs relevant i e future costs vary alternatives It important information execute analysis Lewis Company accounting information provided prior module located bottom paper receives offer make a product called C a customer

Total Pages: 4 Words: 1369 Sources: 4 Citation Style: MLA Document Type: Research Paper

Essay Instructions: Module 5 ? SLP Managerial Accounting - Budgeting

Differential analysis involves knowing which costs are relevant, i.e. future costs that vary among alternatives. It is important to know what information to use and not just how to execute the analysis.
Lewis Company (accounting information provided in the prior module- located at the bottom of this paper) receives an offer to make a new product, called C, for a new customer. The customer wants to buy 1,100 units. Product C has the same cost structure as product B with three exceptions. The new customer is only willing to pay \$245 per unit, direct materials costs will decrease by \$15 per unit and Lewis does not have to incur any variable selling and administrative expenses.
Required
? Make a list of the expenses and amounts that are relevant for this decision. How much with the sale of this product contribute to the profitability of Lewis?
? What if the company only pays \$225 per unit? How does this change the contribution towards profitability?
? If you were the manager, would you accept this order? What considerations, other than financial would enter into your decision?
Modular SLP Expectations: It is important to answer the questions as posed. The document should be two to four pages and written in a clear and concise manner or present tables as required. Support your discussion or tables with references in APA format. You are encouraged to use Excel or other compatible spreadsheet when computations are involved. You can turn in the spreadsheet instead. The content should be equivalent to the page length suggested for a word processing document.
Module 4 ? SLP -Managerial Accounting - Variable Costing
We're using a different fictitious company for the last two modules, the managerial accounting portion of this course. Below find production and sales information for Lewis Company.
Product information Prod B

Beginning inventory 0
Units produced 10,000
Units sold 9,000

Selling price per unit \$300
Variable costs per unit
Direct material 120
Direct labor 60
Variable selling and administrative 10

Fixed costs
Fixed manufacturing overhead 250,000
Fixed selling and administrative 100,000

Lewis Company
Absorption Income Statement
For the period ending Dec. 31, 2012

Sales \$2,700,000
Cost of goods sold 2,205,000
Gross profit (margin) \$495,000
Selling and administrative expenses 180,000
Net income \$315,000

Excerpt From Essay:

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