Campus Press produces textbooks for college courses . The company recently hired a new Editor , Leigh White , to handle production and sales of books...
Campus Press produces textbooks for college courses . The company recently hired a new Editor , Leigh White , to handle production and sales of books for an introduction to accounting course . Leigh's compensation depends on thegross margin associated with sales of this book . Leigh needs to decide how many copies of the book to produce . The following information is available for the fall semester 2013}@ ( Click the icon to view the information . )Leigh has decided to produce either 28 , 000 , 35 , 000 , or 40 . 500 books !Read the requirements*Requirement 1 . Calculate expected gross margin if Leigh produces 28 ,000 , 35,000 , or 40. 600 books . ( Make sure you include the production- volume variance as part of cost of goods sold . )Calculate the gross margin for each level of production . Begin with 28 ,000 books , then 35 , 000 books , and lastly 40 . 600 books . ( Enter a " 0 " for any zero balance accounts . If an account does not have a variance , do not select a label . "28, 000 books35, 000 books40, 600 booksREVEVENUES*$ 2, 408, 000$ 2, 408, 0002,408,000Cost of goods sold2, 072.000*2, 072, 0002, 072, 000Production- volume variance*1.54.000F365, 20:011Net cost of goods sold2,072, 0001. 918,000Gross margin3.36.000490.000
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