If this is the case, will the company’s target return on investment be achieved without any value engineering?
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Jensen insists that the higher-grade wood is a necessity in terms of the sculpture’s design. She believes that spending an additional $4,000 on better marketing will allow Wood Creations to sell each sculpture for $2,500. If this is the case, will the company’s target
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- Sylvan Creations designs, manufactures, and sells modern wood sculptures. Sandra Johnson is an artist for the company. Johnson has spent much of the past month working on the design of an intricate abstract piece. Jim Chase, product development manager, likes the design. However, he wants to make sure that the sculpture can be priced competitively. Ellen Cooper, Sylvan’s cost accountant, presents Chase with the following cost data for the expected production of 75 sculptures: Design cost $10,000 Direct materials 80,000 Direct manufacturing labor 27,500 Variable manufacturing overhead 10,000 Fixed manufacturing overhead 42,500 Fixed marketing costs 17,500 Q.What challenges might managers at Sylvan Creations encounter in achieving the target cost and how might they overcome these challenges?Sylvan Creations designs, manufactures, and sells modern wood sculptures. Sandra Johnson is an artist for the company. Johnson has spent much of the past month working on the design of an intricate abstract piece. Jim Chase, product development manager, likes the design. However, he wants to make sure that the sculpture can be priced competitively. Ellen Cooper, Sylvan’s cost accountant, presents Chase with the following cost data for the expected production of 75 sculptures: Design cost $10,000 Direct materials 80,000 Direct manufacturing labor 27,500 Variable manufacturing overhead 10,000 Fixed manufacturing overhead 42,500 Fixed marketing costs 17,500 Q. Chase thinks that Sylvan Creations can successfully market each piece for $3,000. To earn the required return on capital, the company’s target operating income per unit is 20% of target price. Calculate the target full cost per unit of producing the 75 sculptures. Does the cost estimate Cooper developed meet Sylvan’s requirements?…Value engineering, target pricing, and locked-in costs. Sylvan Creations designs, manufactures, and sells modern wood sculptures. Sandra Johnson is an artist for the company. Johnson has spent much of the past month working on the design of an intricate abstract piece. Jim Chase, product development manager, likes the design. However, he wants to make sure that the sculpture can be priced competitively. Ellen Cooper, Sylvan’s cost accountant, presents Chase with the following cost data for the expected production of 75 sculptures:
- Question 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…Question 10 Cheyenne, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 19,400 Tri-Robos is as follows. Cost Direct materials ($49 per robot) $950,600 Direct labor ($37 per robot) 717,800 Variable overhead ($6 per robot) 116,400 Allocated fixed overhead ($31 per robot) 600,000 Total $2,384,800 Cheyenne is approached by Tienh Inc., which offers to make Tri-Robo for $112 per unit or $2,172,800.Following are independent assumptions.The Reward One Company manufactures windows. Its manufacturing plant has the capacity to produce 12,000 windows each month. Current production and sales are 10,000 windows per month. The company normally charges $250 per window. Requirement 1. Should Reward One accept this special order? Show your calculations. Begin by completing an analysis, and start by showing the computation of the company's operating income without the special order. Next, calculate operating income with the special order, and then calculate the differences between the two columns. (Complete all input fields. For amounts with no change, make sure to enter "0" in the appropriate cells of the Difference column.) Variable costs that vary with number of units produced Direct materials $600,000 Direct manufacturing labor 700,000 Variable costs (for setups, materials handling, quality control, and so on) that vary with number of batches, 100 batches × $1,500 per batch…
- Question 3 Assume that HASF furniture Inc., as described, currently purchases the chair cushions for its lawn set from an outside vendor for $30 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 $16 and the labor cost would be $10 per set and that it would have to purchase cutting and sewing equipment, which would add $25,000 to annual fixed costs. NOTE: No need to enter comma between numbers Required Computation for 10,000 units What amount should have been inccrued if company produce 10,000 units What amount should have been inccrued if company purhcase 10,000 units from outside What amount company save if company make 10,000 cushionsProblem 2. A small woodworking shop makes hand carved tables and chairs. Each product goes through two stages of production. Stage 1, the assembly stage, has 60 minutes available per shift. The second stage, finishing and painting, has 40 minutes available per shift. Each table requires 12 minutes of assembly time and 4 minutes of painting and finishing time. Each chair requires 4 minutes of assembly time and 8 minutes of finishing and painting time. Profit per table is $100, while profit per chair is $60. Write the complete mathematical model for this problem.eBook Question Content Area Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes through the cutting machine area, which is the chief constraint during production. Khaki shorts take 15 minutes on the cutting machine and have a contribution margin per pair of shorts of $15. Khaki pants take 24 minutes on the cutting machine and have a contribution margin per pair of pants of $30. If it is assumed that Rough Stuff has 4,800 hours available on the cutting machine to service a minimum demand for each product of 3,000 units, how much will profits increase if 104 more hours of machine time can be obtained?
- Question 3 Part II 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 Required:a. Calculate the Contribution Margin per chair. b. Compute the Contribution Margin Ratio. c. Determine the break-even point in revenue dollars. 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?Question Content Area Carlton's Kitchens makes two types of pasta makers: Strands and Shapes. The company expects to manufacture 70,000 units of Strands, which has a per-unit direct material cost of $10 and a per-unit direct labor cost of $45. It also expects to manufacture 30,000 units of Shapes, which has a per-unit material cost of $15 and a per-unit direct labor cost of $30. It is estimated that Strands will use 140,000 machine hours and Shapes will require 60,000 machine hours. Historically, the company has used the traditional allocation method and applied overhead at a rate of $21.01 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is shown: Machine Setups $90,000 Machine Processing 4,000,000 Material Requisitions 112,500 Total Overhead $4,202,500 The cost driver for each cost pool and its expected activity is shown: Strands Shapes Total Machine Setups 100 200 300 Machine Hours 140,000 60,000 200,000…Question 4 You are contemplating leaving your full-time employment to concentrate your ability on the marketing of a new low-energy portable heater. You have spoken to a group of manufacturers of similar product, and you have produced the following data based upon the production of 1200 heaters in the six months to December 31, 2021. R R Unit selling price 160 Less: Direct materials 50 Direct labour 30 Fixed Overheads: Admin 4.00 Rent 7.50 Rates…