ACCT Assignment 6

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acct300_12-06.xlsx
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Pr. 12-6

Problem 12-6 * represents an incorrect N answer =COUNTIF(A14:H27,"~*")
Name: 0
Section: " " represents an unanswered N box - counts as an incorrect. =COUNTIF(A14:H27," ")
34
Score: 0% " " represents a correct blank answer or N answer =COUNTIF(A14:H27," ")
0
Key Code: 2 Total SUM(AV13:AV15)
Instructions 34
Answers are entered in the cells with gray backgrounds. Percentage =AD6/AD8
Cells with non-gray backgrounds are protected and cannot be edited. 0%
A red asterisk (*) will appear beside, above or below an incorrect answer. Notes:
" " represents an unanswered N box - counts as an incorrect.
" " represents a correct blank answer or N answer
1. Total number of answers = sum of above
Ethylene Butane Ester Conditional formatting might be used but wasn't here, to hide some of the error check return symbols. If A1 = "~*", then font = red, if something else, then font = background color.
Selling price
Steps:
Variable conversion cost per unit
Highland Community College: Enter all costs as positive values.
Highland Community College: Enter all costs as positive values.
Highland Community College: Enter all costs as positive values.		 Open this sheet and macro sheet
Direct materials cost per unit Open old templated, then change color palet to this sheet's
Total cost per unit Insert new header - change problem number and reformat
Contribution margin per unit Copy these formulas (column AD) to new sheet.
Update to new edition's names and numbers
Copy new error check formulas. For N-boxes
2. =IF(sol.!$C$5="OFF","",IF(AC25=""," ",IF(AC25<>sol.!AC25,"*"," ")))
Ethylene Butane Ester
Contribution margin per unit
Reactor (bottleneck) hours per unit ¸ For B-Boxes
Contribution margin per reactor hour =IF(sol.!$C$5="OFF","",IF(AC30<>sol.!AC30,"*"," "))
Copy Score formula from this template to new sheet.
=IF(sol.!$C$5="OFF","","Score:") =IF(sol.!$C$5="OFF","",AD10)
Which product is the most profitable? Ethylene delivers the most contribution margin per bottleneck hour.
Explain: Butane delivers the most contribution margin per bottleneck hour. =IF(sol.!$C$5="OFF","","*Since some answer boxes are correct when left blank, the beginning score is greater than 0%.")
Ester delivers the most contribution margin per bottleneck hour.
3.
One way to revise the pricing would be to increase the price to the point where all three products produce profitability equal to the highest profit product. This would be determined as follows:
Revised Price of Ethylene:
Unit Contribution Margin per Reactor Hour for Ester Revised Price of Ethylene - Unit Variable Cost of Ethylene
=
Reactor Hours of Ethylene per Unit
Revised Price of Ethylene -
=
= Revised Price of Ethylene
(Price required of Ethylene to deliver the same
contribution margin per bottleneck hour as does
ester.)
Revised price of Ester:
Unit Contribution Margin per Reactor Hour for Ester Revised Price of Butane - Unit Variable Cost of Butane
=
Reactor Hours of Butane per Unit
Revised Price of Butane -
=
= Revised price of Butane
(Price required of Butane to deliver the same
contribution margin per bottleneck hour as does
ester.)
The manager has used differential cost instead of full unit cost in the analysis.
The manager has used full unit cost instead of differential cost in the analysis.
The fixed costs must be included in the decision analysis.

sol.

Problem 12-6 * represents an incorrect N answer =COUNTIF(A14:H27,"~*")
Name: SOLUTION 0
Section: " " represents an unanswered N box - counts as an incorrect. =COUNTIF(A14:H27," ")
Score: See student sheet for student's score 0
Scoring: ON " " represents a correct blank answer or N answer =COUNTIF(A14:H27," ")
8
Total SUM(AV13:AV15)
Instructions 8
Answers are entered in the cells with gray backgrounds. Percentage =AD6/AD8
Cells with non-gray backgrounds are protected and cannot be edited. 100%
A red asterisk (*) will appear beside, above or below an incorrect answer. Notes:
" " represents an unanswered N box - counts as an incorrect.
" " represents a correct blank answer or N answer
1. Total number of answers = sum of above
Ethylene Butane Ester Conditional formatting might be used but wasn't here, to hide some of the error check return symbols. If A1 = "~*", then font = red, if something else, then font = background color.
Selling price $ 400 $ 350 $ 250
Steps:
Variable conversion cost per unit $ 120
Highland Community College: Enter all costs as positive values.		 $ 120
Highland Community College: Enter all costs as positive values.		 $ 80
Highland Community College: Enter all costs as positive values.		 Open this sheet and macro sheet
Direct materials cost per unit 180 130 90 Insert new header - change problem number and reformat
Total cost per unit $ 300 $ 250 $ 170 Copy these formulas (column AD) to new sheet.
Contribution margin per unit $ 100 $ 100 $ 80
2.
Ethylene Butane Ester
Contribution margin per unit $ 100 $ 100 $ 80
Reactor (bottleneck) hours per unit ¸ 1.0 0.8 0.5
Contribution margin per reactor hour $ 100 $ 125 $ 160
Which product is the most profitable? Ester Ethylene delivers the most contribution margin per bottleneck hour. Copy Score formula from this template to new sheet.
Explain: Butane delivers the most contribution margin per bottleneck hour. =IF(sol.!$C$5="OFF","","Score:") =IF(sol.!$C$5="OFF","",AD10)
Ester delivers the most contribution margin per bottleneck hour. Ester delivers the most contribution margin per bottleneck hour.
=IF(sol.!$C$5="OFF","","*Since some answer boxes are correct when left blank, the beginning score is greater than 0%.")
3.
One way to revise the pricing would be to increase the price to the point where all three products produce profitability equal to the highest profit product. This would be determined as follows:
Revised Price of Ethylene:
Unit Contribution Margin per Reactor Hour for Ester Revised Price of Ethylene - Unit Variable Cost of Ethylene
=
Reactor Hours of Ethylene per Unit
Revised Price of Ethylene - $300
$160 =
1.0
$460 = Revised Price of Ethylene
(Price required of Ethylene to deliver the same
contribution margin per bottleneck hour as does
ester.)
Revised Price of Butane:
Unit Contribution Margin per Reactor Hour for Ester Revised Price of Butane - Unit Variable Cost of Butane
=
Reactor Hours of Butane per Unit
Revised Price of Butane - $250
$160 =
0.8
$378 = Revised price of Ester
(Price required of Ester to deliver the same
contribution margin per bottleneck hour as does
ester.)
The manager has used differential cost instead of full unit cost in the analysis.
The manager has used full unit cost instead of differential cost in the analysis.
The fixed costs must be included in the decision analysis.