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.

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Definitions:

False Analogy

A logical fallacy that occurs when someone argues that two things are substantially alike in an important respect when they are not.

Argumentum Ad Populum

A fallacious argument that concludes a proposition to be true because many or most people believe it.

Popular Belief

An opinion or conviction that is widely held by the general population, regardless of whether it is based on fact or fiction.

False Analogy

A logical fallacy where an analogy is used to argue or conclude something, but the analogy is misleading or incomparable due to significant differences between the two situations.