Management accounting Research Paper Example | Topics and Well Written Essays - 1000 words

The board bookkeeping - Research Paper Example $120 + $6.50 = $126.50 * 500 = $63,250 (Total cost) Total deals for bought hard drives = 500 * $154.00 = $77,000 Total benefit created from bought hard drives = $77,000 - $63,250 = $13,750 If Malibu Systems Inc. focuses on the ZEON hard drives advertise, it could make a yearly benefit of ($13,750 + $216,125) $229,875. By delivering make memory chips, Malibu Systems Inc. can sell up to 3,500 memory chips for each year at a cost of $65.00. Yearly deals - $227,500. Creation costs †$62.25 * 3,500 = $217,875 Profit produced from creation and deals of memory chips †($227,500 †$217,875) = $9,625 Production of memory chips for Malibu Systems Inc. is certifiably not a splendid plan to put resources into on the grounds that it gives lower net revenues than creation of Zeon hard drives. Section 2: Contribution Margin per Unit for; Purchased ZEON hard drives Contribution The equation for deciding commitment is the deal value less factor costs (Eisen 2007, 35). Selling cost for eac h ZEON hard drive that has been bought $154.00 per hard drive The variable expense caused $0.85 per hard drive Contribution edge ($154 †$0.85) = $153.15 Manufactured ZEON hard drives Contribution Selling cost for