Chapter 7 Flashcards

1
Q

Limited Resources Problem

A

Hours: Labour Hours per Unit x Demand in Units
Profit: Units Produced x CMU

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2
Q

Keep or Replace

A

Sales
- COGS
= Gross Profit
- Selling Expenses
- Admin Expenses
+ SV
- Purchase Price
- Freight
- Installation
= OI

BASE STATEMENTS ON USEFUL LIFE OF THE MACHINE

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3
Q

Eliminating Unprofitable Segment

A

CVP with unprofitable segment
CVP without unprofitable segment

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