ACCT604 Managerial Accounting
QUESTION: Pristine Limited (PL) manufactures and sells fireproof safes and document containers of various shapes and sizes for home use, including safes made to Australian/New Zealand Industry standard AS/NZS 3809. The division now makes 50 different products but these fit into the two main product groups of 35 metal safes and 15 more recently developed plastic safes. Table 1 shows last quarter’s income statement by product group. Table 1—Quarter 1 income statement by product group Metal safes Plastic safes Total $ $ $ $ $ $ Sales revenues 296900 246800 543700 Direct materials 21500 20680 42180 Process and support costs 231770 170280 402050 Total costs 253270 190960 444230 Net income 43630 55840 99470 Profit margin 14.7% 22.6% 18.3% The managing director,…
Details