this is an excel style practice problem 1.RevenuesCosts:Differential AnalysisPromote Moisturizer (Alt. 1) or Promote Perfume (Alt. 2)August 21PromoteDirect materialsDirect laborVariable factory overheadVariable operating expensesSales promotionIncome (loss)Parisian should promote theMoisturizer(Alternative 1)PromotePerfume(Alternative 2)Differential Effecton Income(Alternative 2) Parisian Cosmetics Company is planning a one-month campaign for September topromote sales of one of its two cosmetics products. A total of $140,000 has beenbudgeted for advertising, contests, redeemable coupons, and other promotionalactivities. The following data have been assembled for their possible usefulness indeciding which of the products to select for the campaign:Unit selling priceUnit production costs:Direct materialsDirect laborVariable factory overheadFixed factory overheadTotal unit production costsUnit variable selling expensesUnit fixed selling expensesTotal unit costsOperating income per unitMoisturizer Perfume$55$60$9336$211612$49$6$14554$28156$49$11ExcelShowMeHowNo increase in facilities would be necessary to produce and sell the increased output. It isanticipated that 22,000 additional units of moisturizer or 20,000 additional units of perfume couldbe sold from the campaign without changing the unit selling price of either product.

Here we have to compute the differential impact on income between promoting moisturizer and…

Answered: Revenues Costs: Direct materials Direct…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 5DQ

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Revenues Costs: Direct materials Direct labor Variable factory overhead Variable operating expenses Sales promotion Income (loss) Parisian should promote the Promote Moisturizer (Alternative 1) Promote Perfume (Alternative 2) Differential Effect on Income (Alternative 2)