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pduvin pduvin
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6 years ago
The data for a paint manufacturing company for February are as follows:

   Litres   List             Customer-specific
   Sold   Price   Costs
Customer 1   50,000   $9.00   $20,000
Customer 2   55,000   $9.00   $20,000
Customer 3   20,000   $9.00   $9,000
Customer 4   15,000   $9.00   $4,000
Customer 5   40,000   $9.00   $19,000

Price discount policy:
$0.25 discount per gallon in excess of 20,000 gallons (up to 40,000)
$0.35 discount per gallon in excess of 40,000 gallons

Required:
Prepare a report showing the customer-specific contribution. Present one column for customer-specific contribution and a second column showing customer-specific contribution as a percentage of customer revenue net of discounts (round percentages to two decimal places).
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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wrote...
6 years ago
Customer-
   specific   As % of
   Contrb'n   Revenue
Customer 1   $421,500   95.47%
Customer 2   $464,750   95.87%
Customer 3   $171,000   95.00%
Customer 4   $131,000   97.04%
Customer 5   $336,000   94.65%

Customer 1 (20 × $9) + (20 × $8.75) + (10 × $8.65) - $20,000
Customer 2 (20 × $9) + (20 × $8.75) + (15 × $8.65) - $20,000
Customer 3 (20 × $9) - $9,000
Customer 4 (15 × $9) - $4,000
Customer 1 (20 × $9) + (20 × $8.75) - $19,000
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