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Manufacturing cycle times, relevant revenues, and relevant costs. The DJ Corporation makes custom specified wire harnesses for the trucking industry only upon receiving firm orders from its custom- ers. DJ has recently purchased a new machine to make two types of wire harnesses, one for Peterbilt and the other for Kenworth. The annual capacity of the new machine is 5,000 hours. The following information is available for next year: Selling Price per Order If Average Manufacturing Cycle Time per Order Is Less Than Inventory Carrying Annual Average Number of Variable Cost per Order per Hour Manufacturing Time Required 40 hours 50 hours More Than Cost per Order Customer 200 Hours 200 Hours Orders 100 10 $14,000 12,500 $13,400 11,960 $9,000 8,000 Peterbilt $0.50 Kenworth 0.45

Manufacturing cycle times, relevant revenues, and relevant costs. The DJ Corporation makes custom specified wire harnesses for the trucking industry only upon receiving firm orders from its custom- ers. DJ has recently purchased a new machine to make two types of wire harnesses, one for Peterbilt and the other for Kenworth. The annual capacity of the new machine is 5,000 hours. The following information is available for next year: Selling Price per Order If Average Manufacturing Cycle Time per Order Is Less Than Inventory Carrying Annual Average Number of Variable Cost per Order per Hour Manufacturing Time Required 40 hours 50 hours More Than Cost per Order Customer 200 Hours 200 Hours Orders 100 10 $14,000 12,500 $13,400 11,960 $9,000 8,000 Peterbilt $0.50 Kenworth 0.45

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4PA: Markham Farms reports the following contribution margin income statement for the month of August....
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Calculate the average manufacturing cycle times per order (a) if DJ manufactures only Peterbilt and (b) if DJ manufactures both Peterbilt and Kenworth

Manufacturing cycle times, relevant revenues, and relevant costs. The DJ Corporation makes custom specified wire harnesses for the trucking industry only upon receiving firm orders from its custom- ers. DJ has recently purchased a new machine to make two types of wire harnesses, one for Peterbilt and the other for Kenworth. The annual capacity of the new machine is 5,000 hours. The following information is available for next year: Selling Price per Order If Average Manufacturing Cycle Time per Order Is Less Than Inventory Carrying Annual Average Number of Variable Cost per Order per Hour Manufacturing Time Required 40 hours 50 hours More Than Cost per Order Customer 200 Hours 200 Hours Orders 100 10 $14,000 12,500 $13,400 11,960 $9,000 8,000 Peterbilt $0.50 Kenworth 0.45
Transcribed Image Text:Manufacturing cycle times, relevant revenues, and relevant costs. The DJ Corporation makes custom specified wire harnesses for the trucking industry only upon receiving firm orders from its custom- ers. DJ has recently purchased a new machine to make two types of wire harnesses, one for Peterbilt and the other for Kenworth. The annual capacity of the new machine is 5,000 hours. The following information is available for next year: Selling Price per Order If Average Manufacturing Cycle Time per Order Is Less Than Inventory Carrying Annual Average Number of Variable Cost per Order per Hour Manufacturing Time Required 40 hours 50 hours More Than Cost per Order Customer 200 Hours 200 Hours Orders 100 10 $14,000 12,500 $13,400 11,960 $9,000 8,000 Peterbilt $0.50 Kenworth 0.45
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