[denzil100]

Please help me with the following questions.

1. Raglan manufacturing has the following cost components for 100,000 units of product for 2009.

Direct materials $200,000
Direct Labor $100,000
Manufacturing Overhead $200,000
Selling & Administrative Expense $150,000

All costs are variable except for $100,000 of manufacturing overhead and $100,000 of selling & administrative expenses. What is the total costs to produce and sell 110,000 units during 2009? Please show all calculations.

2. XYZ company determines its selling price by marking up variable costs 60%. In addition, the company uses frequent selling price markdowns to stimulate sales. If the markdowns average 10%, what is the company's contribution margin ratio?


3. Denton Electronics Inc. manufactures components for use in producing one of its finished products. When 12,000 units are produced, the full cost/unit is $35, separated as follows :

Direct Labor $15
Direct Material $ 5
Variable overhead $ 10
Fixed overhead $ 5

Shaw company has offered to sell 12,000 components to Denton Electronics for $37 each. If Denton Electronics accepts the offer, some of the facilities currently being used to manufacture the components can be rented as warehouse space for $40,000. However, $3 of the fixed overhead currently applied to each component would have to be covered by Denton's Electronics other products. What is the Differential cost to Denton Electronics of purchasing the components from Shaw company? Please show calculations. Thanks in advance.

[Curlyben]

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