Chen Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Chen then assembles and packages such items as blenders and juicers. Both divisions are free to buy and sell any of their components internally or externally. The following costs relate to small motor LN233 on a per unit basis. Fixed cost per unit $5.00 Variable cost per unit $11.05 Selling price per unit $35.05 Assuming that the Small Motor Division has excess capacity, compute the minimum acceptable price for the transfer of small motor LN233 to the Household Division. (Round answer to 2 decimal places, e.g. 10.50.) Minimum transfer price %24 per unit Assuming that the Small Motor Division does not have excess capacity, compute the minimum acceptable price for the transfer of the small motor to the Household Division. (Round answer to 2 decimal places, e.g. 10.50.) Minimum transfer price
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- Question 6 Technology Inc. Ltd sells desktop computer printers for $65 per unit. Unit product costs are: Direct materials $12 Direct labor 20 Manufacturing overhead 6 Total $38 A special order to purchase 10,000 desktop computer printers has recently been received from another company, and Technology Inc. has the idle capacity to fill the order. The company will incur an additional $1.50 per printer for additional labor costs due to a slight modification the buyer wants to be made to the original product. One-third of the manufacturing overhead costs are fixed and will be incurred no matter how many units are produced. $2,100 of existing fixed administrative costs will be allocated to the order as “part of the cost of doing business”.…Problem 4 (JIT Purchasing, Relevant Benefits, Relevant Costs) The Josefina Corporation is an automotive supplier that uses automatic turning machines to manufacture precision parts from steel bars. Josefina's inventory of raw steel averages P600,000. JC Tan, president of Josefina, and Patrick Argante, Josefina's controller, are concerned about the costs of carrying inventory. The steel supplier is willing to supply steel in smaller lots at no additional charge. Patrick Argante identified the following effects of adopting a JIT inventory program to virtually eliminate steel inventory: Without scheduling any overtime, lost sales due to stockouts would increase by 35,000 units per year. However, by incurring overtime premiums of P40,000 per year, the increase in lost sales could be reduced to 20,000 units. This would be the maximum amount of overtime that would be feasible for Josefina. Two warehouses presently used for steel bar storage would no longer be needed. Josefina rents one…eBook Problem 19-02 The management of a firm wants to introduce a new product. The product will sell for $5 a unit and can be produced by either of two scales of operation. In the first, total costs are TC = $3,000 + $3.1Q. In the second scale of operation, total costs are TC = $4,520 + $2.7Q. What is the break-even level of output for each scale of operation? Round your answers to the nearest whole number. The first scale of operation: units The second scale of operation: units What will be the firm’s profits for each scale of operation if sales reach 3,800 units? Round your answers to the nearest dollar. The first scale of operation: $ The second scale of operation: $ One-half of the fixed costs are noncash (depreciation). All other expenses are for cash. If sales are 1,100 units, will cash receipts cover cash expenses for each scale of operation? Enter your answers as positive values. Round your answers to the nearest dollar. The first scale of operation generates a cash…
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- Required information The Foundational 15 (Algo) [LO6-1, LO6-2, LO6-3, LO6-4, LO6-5] Skip to question [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $78 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 60,000 units and sold 57,000 units. Variable costs per unit: Manufacturing: Direct materials $ 28 Direct labor $ 12 Variable manufacturing overhead $ 2 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 1,260,000 Fixed selling and administrative expense $ 654,000 The company sold 42,000 units in the East region and 15,000 units in the West region. It determined that $340,000 of its fixed selling and administrative expense is traceable to the West region, $290,000 is traceable to the East region, and the…Required information The Foundational 15 (Algo) [LO6-1, LO6-2, LO6-3, LO6-4, LO6-5] Skip to question [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $78 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 60,000 units and sold 57,000 units. Variable costs per unit: Manufacturing: Direct materials $ 28 Direct labor $ 12 Variable manufacturing overhead $ 2 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 1,260,000 Fixed selling and administrative expense $ 654,000 The company sold 42,000 units in the East region and 15,000 units in the West region. It determined that $340,000 of its fixed selling and administrative expense is traceable to the West region, $290,000 is traceable to the East region, and the…Question content area top Part 1 Red Rose Manufacturers Inc. is approached by a potential customer to fulfill a onetimeonly special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers: Variable costs: Direct materials $120 Direct labor 100 Manufacturing support 115 Marketing costs 85 Fixed costs: Manufacturing support 155 Marketing costs 55 Total costs 630 Markup (40%) 252 Targeted selling price $882 What is the full cost of the product per unit? A. $420 B. $252 C. $882 D. $630
- QUESTION 40 Faxaco has the following cost information regarding a component to be used in making its product, fax machine. The company has a capacity of manufacturing the component up to 900 units. The manufacturing costs for making 100 units are: Direct materials and labor $1,800 Variable overhead $2,600 Fixed overhead $9,000 $13,400 Of fixed overhead, 60% can be eliminated if the component is not manufactured. If the component is not manufactured, the facilities can be rented for $6,700. An outside vendor, Fast Company has offered to provide Kappa with the component for $150 each. Faxaco is making a Make or Buy decision. Compared to "Make", "Buy" is: A. $1,600 worse B. $600 better C. $4,900 worse D. $1,500 better E. $3,300 betterQuestion 1.2 Alejandro Kirk Manufacturing produces two types of entry doors: Deluxe and Standard. The assignment basis for support costs has been direct labour dollars. For 2021, Alejandro Kirk the following data for the two products: Deluxe Standard Sales units 50,000 400,000 Sales price per unit $650.00 $475.00 Direct material and labour costs per unit $180.00 $130.00 Manufacturing support costs per unit $80.00 $120.00 Last year, Alejandro Kirk Manufacturing purchased an expensive robotics system to allow for more decorative door products in the deluxe product line. The CFO suggested that an ABC analysis could be valuable to help evaluate a product mix and promotion strategy for the next sales campaign. She obtained the following ABC information: Activity Cost Driver Cost Total Deluxe Standard Setups # of setups $500,000 500 400 100 Machine related # of machine hours…Queston 3 Part 2 The Advent Corporation also manufactures chairs and tables at one of their divisions. The following isdata for its chair manufacturing department for the month of February.Actual Sales 4,500 ChairsSelling Price $60.00 per chairVariable Costs $15.00 per chairFixed Costs $72,000 d. Calculate the Margin of Safety in revenue dollars. e. If the company wishes to increase its total dollar contribution margin by 50% in March, by how muchwill it have to increase sales, in units, if all factors remain the same?