BUS 254 Study Guide - Midterm Guide: Fixed Cost, Gross Margin, Variable Cost

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 254
• Professor: Masood Kamlani

Document Summary

The company"s income statements for the last two years are presented below: The company has no beginning or ending inventories. Required: estimate the company"s total variable cost per unit, and its total fixed costs per year. (remember that this is a manufacturing firm. , compute the company"s contribution margin for this year. Variable rate = (,000 - ,000)/(70,000 - 50,000) Variable rate = change in costs/change in units. Variable rate = (,000 - ,000)/(70,000 - 50,000) Q2. the following data (in thousands of dollars) have been taken from the accounting records of. Required: (a) prepare a schedule of cost of goods manufactured in good form. (b) compute the cost of goods sold. (c) using data from your answers above as needed, prepare an income statement in good form. (a) schedule of cost of goods manufactured. Cost of goods manufactured (b) computation of cost of goods sold. Q3. bakerston company is a manufacturing firm that uses job-order costing.