# Accounting overheads Accounting, Finance, SPSS Math Problem (Math Problem Sample)

an accounting problem involving marginal and absorption overheads.

source..Part A: Marginal Costing

1 Product cost in marginal costing

Football Netballs

Material cost: 65

Labor 55

Packaging21

Variable overheads11

Total costs 1412

TC-Add 50% mark-up (1.5*14)21(1.5*12)18

Contribution (before mark-up)5.54.5

Contribution (after mark-up) (19.5-21)-1.5(16.5-18)-1.5

Fixed costs are not affected mark-up 41,532

2 Reasons

Jane and the 2 Van drivers and the 2 vans are indirectly involved in the production of the football and netballs. Hence they do not affect the total cost in the calculation of contribution margin.

* The negative contribution margin indicates that the variable costs and variable expenses of the company exceed the sales of the company. The company should reduce its expenses in total. The management should also work to increase its sales to counteract the effect of the negative contribution.

* Negative breakeven point in the company is as a result of low sales turnover. The company should find ways to increase their sales by focusing on customers who bring in high contributions and also by reducing total fixed costs. Increasing sales will also help to offset the fixed costs.

*

3 Determining the BEP

BEP = total fixed costs

Contribution

* Footballs: BEP in units = 41,532/5.57,551.24 per unit

### Other Topics:

- Independence Test in SPSSDescription: Independence Test in SPSS Accounting, Finance, SPSS Math Problem...1 page/≈275 words| No Sources | Other | Accounting, Finance, SPSS | Math Problem |
- Data analysis & Business intelligenceDescription: Write your answers to the questions in this document, keeping your solution as a single Word document...4 pages/≈1100 words| No Sources | Other | Accounting, Finance, SPSS | Math Problem |
- Finance, Accounting, and Banking Accounting, Finance Math ProblemDescription: We are using 600 it is the cash flow close to $1000 the initial investment under year two. We also have to substrate 600 1100 because the next cash flow has exceeded 1000 the initial investment. From the calculations payback is 2.8 years, this is the time the project will be profitable....1 page/≈275 words| No Sources | Other | Accounting, Finance, SPSS | Math Problem |