Zip-Up Company Provides the Following Data Developed for Its Master

question 100

Essay

Zip-up Company provides the following data developed for its master budget:
$\begin{array}{c}\begin{array}{|l|}\hline \text {Sales price}\\\hline \text {Costs:}\\\hline \text {Direct materials}\\\hline \text {Direct labor}\\\hline \text {Variable overhead}\\\hline \text {Factory depreciation}\\\hline \text {Supervision}\\\hline \text {Selling expense}\\\hline \text {Administrative cost}\\\hline \end{array}\begin{array}{l|}\hline \$ 11.00 \text { per unit }\\\hline \\\hline \$ 3.00 \text { per unit } \\\hline \$ 4.75 \text { per unit } \\\hline \$ 0.50 \text { per unit } \\\hline \$ 12,000 \text { per month } \\\hline \$ 13,000 \text { per month } \\\hline \$ 0.25 \text { per unit } \\\hline \$ 9,000 \text { per month }\\\hline \end{array}\end{array}$
Required:
Prepare flexible budgets for sales of 20,000, 22,000 and 24,000 units. Use a contribution margin format.

Distinguish between movements along the curve and shifts of the curve for both demand and supply.

Recognize the difference between normal goods, inferior goods, substitutes, and complements.

Analyze the impact of external factors on the demand and supply of goods.

Understand the concept of equilibrium and how it is affected by changes in demand and supply.

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Definitions:

Consumer Culture

A societal framework in which buying and using goods and services is promoted as a primary social and economic activity.

Great Depression

Worst economic depression in American history; it was spurred by the stock market crash of 1929 and lasted until World War II.

Segregation

A policy or practice of separating people based on race or ethnicity, often resulting in inequality and discrimination.

Greensboro Sit-in

A series of nonviolent protests in 1960 which started when four African American students sat at a segregated lunch counter in Greensboro, North Carolina, challenging racial segregation.