Please help me with show all calculation thanku ookintThornton Company manufactures a personal computer designed for use in schools and markets it under its own label. Thornton hasthe capacity to produce 37,000 units a year but is currently producing and selling only 12,000 units a year. The computer's normalselling price is $1,780 per unit with no volume discounts. The unit-level costs of the computer's production are $480 for directmaterials, $130 for direct labor, and $140 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurredby Thornton during the year are expected to be $2,210,000 and $804,000, respectively. Assume that Thornton receives a specialorder to produce and sell 3.120 computers at $1,230 each.RequiredCalculate the contribution to profit from the special order. Should Thornton accept or reject the special order?Contribution to profitShould Thomton accept or reject the special order?

Incremental Analysis :— This analysis shows the comparison between two different alternatives. A…

Answered: ook int Thornton Company manufactures a…

Essentials Of Business Analytics

1st Edition

ISBN:9781285187273

Author:Camm, Jeff.

Publisher:Camm, Jeff.

Chapter11: Monte Carlo Simulation

Section: Chapter Questions

Problem 10P

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Benson Company manufactures a personal computer designed for use in schools and markets it under its own label. Benson has the capacity to produce 37,000 units a year but is currently producing and selling only 13,000 units a year. The computer's normal selling price is $1,620 per unit with no volume discounts. The unit-level costs of the computer's production are $570 for direct materials, $200 for direct labor, and $140 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Benson during the year are expected to be $2,270,000 and $817,000, respectively. Assume that Benson receives a special order to produce and sell 3,080 computers at $1,300 each. Required Calculate the contribution to profit from the special order. Should Benson accept or reject the special order? Contribution to profit Should Benson accept or reject the special order?
personal computer designed for use in schools and markets it under its own label. Benson has the capacity to produce 27,000 units a year but is currently producing and selling only 16,000 units a year. The computer’s normal selling price is $1,790 per unit with no volume discounts. The unit-level costs of the computer’s production are $420 for direct materials, $270 for direct labor, and $150 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Benson during the year are expected to be $2,180,000 and $802,000, respectively. Assume that Benson receives a special order to produce and sell 3,080 computers at $1,290 each. Required Calculate the contribution to profit from the special order. Should Benson accept or reject the special order?
Franklin Company manufactures a personal computer designed for use in schools and markets it under its own label. Franklin has the capacity to produce 44,000 units a year but is currently producing and selling only 20,000 units a year. The computer’s normal selling price is $1,650 per unit with no volume discounts. The unit-level costs of the computer’s production are $520 for direct materials, $220 for direct labor, and $140 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Franklin during the year are expected to be $2,120,000 and $814,000, respectively. Assume that Franklin receives a special order to produce and sell 3,150 computers at $1,280 each. Required Calculate the contribution to profit from the special order.
Premier Co. produces park equipment and is currently producing 10,000 children swings annually. A supplier has offered to produce the swings for Premier Co. for $500 per swing. Premier Co. incurs unit-level costs of $490 per unit. Premier also spends $20,000 on product design each year and incurs $100,000 of facility-level costs. The avoidable production cost for Premier to produce one swing is
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SE Spring Corp. has two divisions, Daffodil and Tulip. Daffodil produces a gadget that Tulip could use in its production. Tulip currently purchases 195,000 gadgets for $14.40 on the open market. Daffodil's variable costs are $7.90 per widget while the full cost is $12.20. Daffodil sells gadgets for $15 each. If Daffodil is operating at capacity, what would be the maximum transfer price Tulip would pay internally? Multiple Choice $7.90 $12.20 $14.40 $14.90
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InteliSystems manufactures an optical switch that it uses in its final product. InteliSystems incurred the following manufacturing costs when it produced 70,000 units last year as shown in the chart below: InteliSystems does not yet know how many switches it will need this year; however, another company has offered to sell InteliSystems the switch for $8.50 per unit. If InteliSystems buys the switch from the outside supplier, the manufacturing facilities that will be idle cannot be used for any other purpose; yet none of the fixed costs are avoidable. Requirements 1. Given the same cost structure, should InteliSystems make or buy the switch? Show your analysis. 2. Now, assume that InteliSystems can avoid $105,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, InteliSystems needs 75,000 switches a year rather than 70,000 switches. What should the company do now? 3. Given the last scenario, what is the most InteliSystems would be willing to…
Fame Company manufactures engines. Fame produces all the parts necessary for its engines, except for one electronic component, which is purchased from two local suppliers: Hydra International and Parable Company. Both suppliers are reliable and rarely deliver late. Hydra sells the component for $12.00 per unit, while Parable sells the same component for $10.00. Fame purchases 80% of its components from Parable because of the lower price it offers. The total annual demand is 95,000 units. I. Activity Data Activity Cost Inspecting components (sampling only) $ 210,000 Reworking products (due to failed component) $2,454,000 Warranty work (due to failed component) $1,923,000 II. Supplier Data Hydra Parable International Company Unit purchase price $12.00 $10.00 Units purchased 19,000 76,000 Sampling hours 60 2,600 Rework hours 150 3,800 Warranty hours 550 7,000 Calculate…
Steele Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racingbikes with limited sales. Steele produces and sells only 10,000 bikes each year. Due to the low volume of activity, Steele is unable to obtainthe economies of scale that larger producers achieve. For example, Steele could buy the handlebars for $31 each; they cost $34 each tomake. The following is a detailed breakdown of current production costs. Item Unit Cost Total Unit Level Costs Materials $16 160,000 Labor 12 120,000 Overhead 2 20,000 Allocated Facility Level Cost 4 40,000 Total $34 340,000 After seeing these figures, Steele’s president remarked that it would be foolish for the company to continue to produce the handlebars at $34each when it can buy them for $31 each.RequiredCalculate the total relevant cost. Do you agree with the president’s conclusion? Per Unit Total Total Relevant Cost
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