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    Wilkerson Company Case

    1. If Wilkerson were to cut prices, based on contribution margin, to just cover short-term variable costs, what consequences could it experience? (5 marks) Several break-even-point assumptions are made in calculation: 1) Total fixed costs do not change with volume, and will exist regardless if the products are sold or not. 2) Sales mix will […] More

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    Case study for Wilkerson Company

    1. According to the case, if using ABC, Wilkerson should pool overheads into five activities: machine-related expenses, setup labor cost, receiving and production control cost, engineering cost, and packaging and shipping cost. The cost pool/cost driver information for an Activity Based Costing (ABC) system for Wilkerson has already provided by table 2. Based on the […] More