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The managerial accountant at the Candle Factory reported $325,000,000 in revenues and the following ...

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The managerial accountant at the Candle Factory reported $325,000,000 in revenues and the following ...

The managerial accountant at the Candle Factory reported $325,000,000 in revenues and the following external failure costs in 2012:

Cost of Quality Category

External failure costs
Estimated forgone contribution margin   $14,000,000
   and income on lost sales
      Total failure costs   $325,000,000

Required
Compute the external failure cost to percent of revenues of associated with this loss.
A) 4.00%
B) 4.10%
C) 4.20%
D) 4.30%
E) 4.40%

Textbook

Managerial Accounting: Decision Making and Motivating Performance

Edition: 1^st

Authors: Datar, Rajan

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Managerial Accounting: Decision Making and Motivating Performance
University of Pittsburgh

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skully Author

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7 years ago

Thank you ever so much for this generous answer.

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Managerial Accounting: Decision Making and Motivating Performance
University of Pittsburgh

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