Please answer the requirements 1, 2 and 3 and refer to the data table. Eagle Tiles is a small distributor of marble tiles. Eagle identifies its three major activities and cost pools as ordering, receivingand storage, and shipping, and it reports the following details for 2019:| (Click the icon to view the details.)For 2019, Eagle buys 220,000 marble tiles at an average cost of $4 per tile and sells them to retailers at an average price of $6per tile. Assume Eagle has no fixed costs and no inventories.Requirement 1. Calculate Eagle's operating income for 2019.RevenuesCosts:Purchase cost of tilesOrdering costsReceiving and storageShippingTotal costsOperating incomeData tableActivityPlacing and paying for orders of marble1. tiles2. Receiving and storage3. Shipping of marble tiles to retailersRequirementsCost DriverQuantity ofCost DriverCost per Unit ofCost DriverNumber of orders900$80 per orderLoads moved4,300$50 per loadNumber ofshipments1,700 $40 per shipment1.2.Calculate Eagle's operating income for 2019.For 2020, retailers are demanding a 4% discount off the 2019 price. Eagle's suppliers are onlywilling to give a 3% discount. Eagle expects to sell the same quantity of marble tiles in 2020 asin 2019. If all other costs and cost-driver information remain the same, calculate Eagle'soperating income for 2020.3. Suppose further that Eagle decides to make changes in its ordering and receiving-and-storingpractices. By placing long-run orders with its key suppliers, Eagle expects to reduce thenumber of orders to 600 and the cost per order to $40 per order. By redesigning the layout ofthe warehouse and reconfiguring the crates in which the marble tiles are moved, Eagleexpects to reduce the number of loads moved to 3,425 and the cost per load moved to $48.Will Eagle achieve its target operating income of $0.41 per tile in 2020? Show yourcalculations.×wer

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Answered: Eagle Tiles is a small distributor of…

Eagle Tiles is a small distributor of marble til and storage, and shipping, and it reports the (Click the icon to view the details.)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?
Two companies Malcom and Yoda manufacture the similar hand-sanitizing products. The following data for the two companies for the year 2019 are provided below: Malcom ($) Yoda ($) Sales revenue 60,000 72000 Total costs 42,000 48000 Variable Costs 40 % of sales revenue 50% Required: If sales of the product in Yoda company are equal to 3,000 units, determine the BEP (in units), and present the Break-even chart. In 2019, company Yoda plans to increase the variable cost by $1 while the fixed cost and the selling price will remain constant. Calculate the number of units to be sold in order to earn the same profit as Malcom in 2019. Based on your answers to parts 1 and 2, Discuss which company has a safer financial position, and why. I need the answers of the the remaining subparts too all these three points
Sisters Company specializes in selling and installing upscale home theater systems. On April 1, 2021, Sisters sold a premium home theater package that includes a projector, set of surround speakers, and high quality leather seats, along with complete installation service, for $32,500. If sold separately, each of these goods or services would have cost $15,000 (projector), $12,500 (speakers), $17,500 (seats), and $3,000 (installation), respectively. Required: How much of the transaction price would be allocated to the projector, the speakers, the leather seats, and the installation service, assuming that each of these four parts of the contract is a separate performance obligation? Show your work.
Kristin is a distributor of bras picture frames. For 20X4, she plans to purchase for P30 each and sell them for P45 each. Kristin’s fixed costs are expected to be P 240,000. Kristin’s only other cost will be variable costs of P60 per shipment for preparing the invoice and delivery documents, organizing the delivery, and following up for collecting accounts receivable. The P60 cost will be incurred each time Kristin ships an order of picture frames, regardless of the number of frames in the order. Suppose Kristin anticipates making 500 shipments in 20X4, how many picture frames must Kristin sell to break-even in 20X4 a. 18,000 b. 12,000 c. 14,000 d. 16,000
Kristin is a distributor of bras picture frames. For 20X4, she plans to purchase for P30 each and sell them for P45 each. Kristin’s fixed costs are expected to be P 240,000. Kristin’s only other cost will be variable costs of P60 per shipment for preparing the invoice and delivery documents, organizing the delivery, and following up for collecting accounts receivable. The P60 cost will be incurred each time Kristin ships an order of picture frames, regardless of the number of frames in the order. Suppose Kristin sells 40,000 picture frames in 1,000 shipments in 20X4, what is the kristin’s operating income for 20X4? a. P 300,000 b. P 420,000 c. P 240,000 d. P 450,000
Luke sells machines, and also offers installation and technical support services. The individual selling prices of each product are shown below. Sale price of goods $75 Installation $25 A year’s service $50 Company X bought a machine on 1 May 2018 and was charged a reduced price of $100. Luke only offers discounts when customers purchase a package of products together. According to IFRS 15 Revenue from Contracts with Customers, how much should be recorded in revenue for the year ended 31 December 2019? Answer should be rounded to the nearest $.
Two companies Malcom and Yoda manufacture the similar hand-sanitizing products. The following data for the two companies for the year 2019 are provided below: Malcom ($) Yoda ($) Sales revenue 60,000 72000 Total costs 42,000 48000 Variable Costs 40 % of sales revenue 50% Required: Calculate the Break Even Point (BEP) in dollars of product for each company. Calculate the percentage margin of safety for each company. If sales of the product in Yoda company are equal to 3,000 units, determine the BEP (in units), and present the Break-even chart. In 2019, company Yoda plans to increase the variable cost by $1 while the fixed cost and the selling price will remain constant. Calculate the number of units to be sold in order to earn the same profit as Malcom in 2019. Based on your answers to parts 1 and 2, Discuss which company has a safer financial position, and why.
The pictures below are supposed to be answered using this information: Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2020, the company incurred the following costs. Variable Costs per Unit Direct materials $10.65 Direct labor $4.90 Variable manufacturing overhead $8.24 Variable selling and administrative expenses $5.54 Fixed Costs per Year Fixed manufacturing overhead $319,500 Fixed selling and administrative expenses $298,342 Siren Company sells the fishing lures for $35.50. During 2020, the company sold 80,000 lures and produced 90,000 lures.
Assume that HASF furniture Inc., as described, currently purchases the chair cushions for its lawn set from an outside vendor for $15 per set. Modern Furniture’s chief operations officer wants an analysis of the comparative costs of manufacturing these cushions to determine whether bringing the manufacturing in-house would save the firm money. Additional information shows that if Modern furniture’s were to manufacture the cushions, the materials cost would be $6 and the labor cost would be $4 per set and that it would have to purchase cutting and sewing equipment, which would add $10,000 to annual fixed costs. Calculate Amount company will save if company make 10,000 cushions What amount should have been inccrued if company purchase the units what amount should have been inccrued if company produce the units
Santana Rey expects sales of Business Solutions’s line of computer workstation furniture to equal 300 workstations (at a sales price of $3,300 each) for 2019. The workstations’ manufacturing costs include the following. Direct materials $ 750 per unit Direct labor $ 400 per unit Variable overhead $ 60 per unit Fixed overhead $ 24,000 per year The selling expenses related to these workstations follow. Variable selling expenses $ 45 per unit Fixed selling expenses $ 3,500 per year Santana is considering how many workstations to produce in 2019. She is confident that she will be able to sell any workstations in her 2019 ending inventory during 2020. However, Santana does not want to overproduce as she does not have sufficient storage space for many more workstations.Required:1. Complete the following income statements using absorption costing.2. Complete the following income statements using variable costing.
Printer Supply Company sells computer printers and printer supplies. One of its products is a toner cartridge for laser printers. At the beginning of 2019, there were 225 cartridges on hand that cost $62 each. During 2019, Printer Supply purchased 1,475 cartridges at $62 each. After inspection, Printer Supply determined that 15 cartridges were defective and returned them to the supplier. Printer Supply also sold 830 cartridges at $95 each and sold an additional 710 cartridges at $102 each after a midyear selling price increase. Customers returned 20 of the cartridges that were purchased at $102 to Printer Supply for miscellaneous reasons. Assume that Printer Supply uses a perpetual inventory system. . Prepare summary journal entries to record the purchases, sales, and return of inventory. Assume that all purchases and sales are on credit but no discounts were offered. Record the entry for the cost of goods sold related to the sales during the year. Cost of Goods Sold ?…
Diamond Boot Factory normally sells its specialty boots for $35 a pair. An offer to buy 125 boots for $31 per pair was made by an organization hosting a national event in Norfolk. The variable cost per boot is $12, and special stitching will add another $2 per pair to the cost. Determine the differential income or loss per pair of boots from selling to the organizatio