A company is considering whether to launch a new product. The selling price and costs for each unit of the product are shown in table below:

The fixed overhead cost is based on expected production of 2,000 units.
The company will only launch the product if it is expected to be profitable.
To which of the following is the decision to launch the product most sensitive?

A manufacturing company uses activity-based costing to charge overheads to its three products. One of the main activities is quality inspection. The cost driver is the number of inspections and the budgeted cost is $211,200.
Additional budgeted data.

What is the budgeted quality inspection cost for a unit of product F?

Explain THREE benefits that organizations gain from using budgetary planning and control systems.
Select ALL the true statements.

A manager must select one of three projects, W, X or Y.
The following payoff table has been prepared to show the outcomes in $000 at three possible levels of demand:

The manager is now preparing a regret matrix.
What figure (in $000) will be shown for Project Y in the regret matrix if the average demand arises?

A company has a budgeted contribution to sales (C/S) ratio of 30% and a budgeted operating profit margin of 20%. Budgeted sales were $100,000.
In month 2, actual production and sales volumes and all costs were as budgeted. The actual C/S ratio was 33% .
Which of the following statements, about the company's contribution and operating profit in month 2, is correct?