Inspect time / unit$10,207 10.8 minutesSalesVolumeVariable costFixed costProduct X$50,0001000$22,057Product Y$150,0002000$56,829$39,065 12 minutes1.Calculate the total shadow cost of inspection time in $ / hourNote. The overall opportunity cost for a resource (S) is the maximum value of the Si's across allproducts that use the resource. Sis called the resource's shadow cost.Inspect time / unit$21,635 14.4 minutespriceVariable costFixed costProduct Z79 per unit 29 per unit2. Calculate the breakeven volume for this new product, taking opportunity cost into account.Note.For each product, the shadow cost should be treated as a variable cost. Sx Ui is added to Ci(variable cost per unit).3.This situation is an example of which type of product interaction?a. Supply complementb.Supply substitutionc.Demand complementd.Demand substitution

Sales Volume Variable cost Fixed cost Inspect time / unit Product X $50,000 1000 $22,057 $10,207 10.8 minutes Product Y $150,000 2000 $56,829 $39,065 12 minutes 1.Calculate the total shadow cost of inspection time in $ / hour Note. The overall opportunity cost for a resource (S) is the maximum value of the Si's across all products that use the resource. Sis called the resource's shadow cost. price Variable cost Fixed cost Inspect time / unit Product Z 79 per unit 29 per unit $21,635 14.4 minutes 2. Calculate the breakeven volume for this new product, taking opportunity cost into account. Note.For each product, the shadow cost should be treated as a variable cost. Sx Ui is added to Ci (variable cost per unit). 3.This situation is an example of which type of product interaction? a. Supply complement b.Supply substitution |c.Demand complement d.Demand substitution

Sales Volume Variable cost Fixed cost Inspect time / unit Product X $50,000 1000 $22,057 $10,207 10.8 minutes Product Y $150,000 2000 $56,829 $39,065 12 minutes 1.Calculate the total shadow cost of inspection time in $ / hour Note. The overall opportunity cost for a resource (S) is the maximum value of the Si's across all products that use the resource. Sis called the resource's shadow cost. price Variable cost Fixed cost Inspect time / unit Product Z 79 per unit 29 per unit $21,635 14.4 minutes 2. Calculate the breakeven volume for this new product, taking opportunity cost into account. Note.For each product, the shadow cost should be treated as a variable cost. Sx Ui is added to Ci (variable cost per unit). 3.This situation is an example of which type of product interaction? a. Supply complement b.Supply substitution |c.Demand complement d.Demand substitution

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter27: Lean Principles, Lean Accounting, And Activity Analysis

Section: Chapter Questions

Problem 27.18EX

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