- ACCTG 211 COMPREHENSIVE PROBLEM 6
Comprehensive Problem has a value of 10% of your final grade.
Objectives: Demonstrate the application of the accounting concepts related to Cost Behavior and Cost –
Apply the Cost-Volume-Profit relationship to determine target profits
Calculate the Required Sales Mix to break even.
Calculate the Variable and Fixed Costs in a Mixed Cost scenario
Determine Production Budgets based upon the Sales Projection.
Part 1. 20%
Boards 4 Brides customizes standard board games to depict places and events for the happy couple.
These are then provided to the guests at the wedding reception. Boards 4 Brides has the following
historical information and is going to use the High – Low method to determine its pricing schedule.
Using the following data, determine what Boards 4 Brides must charge for a wedding with 500 guests in
order to show a profit of $1,200.
Part 2. 40%
Boards 4 Bucks sells 3 different Board Games: MakinMoney (MM), UpNDown (UD), ChexNBalances (CB)
Last year Boards4Bucks sold 36,000 MM games, 63,000 UD games, and 81,000 CB games.
MM sells for $22 with a variable cost of $8
UD sells for $28 with a variable cost of $6
CB sells for $35 with a variable cost of $11
Fixed Costs for Boards4Bucks are $3,894,562.
The company anticipates that the sales mix proportions will remain the same. For the next year, how
many board games of each title must Boards 4 Bucks sell to break even?
ACCTG 211 COMPREHENSIVE PROBLEM 6: BOARDS 4 ?
Part 3. 40%
Boards 4 Boomers manufactures retro board games. The company is going through its annual budgeting
process. Using the following data, determine the $ Amount that must be budgeted for Direct Materials,
Direct Labor, and Factory Overhead. How much will Boards 4 Boomers spend to meet the Production
Projected Sales: 1,250,000 games
Inventory Buffer Required:
Finished Goods Inventory:
DM Inventory Buffer Required: 70,000 parts
DM Current Inventory:
DM = 7 parts / game
DM$ = $2.25 / part
DL = 20 minutes per part