Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $31 per pound and costs $29 per pound to produce. Product C would sell for $56 per pound and would require an additional cost of $23 per pound to produce. What is the differential cost of producing Product C? Oa. $23 per pound Ob. $29 per pound Oc. $56 per pound Od. $31 per pound
Q: Best Birdies produces ornate birdcages. The company's average cost per unit is $18 when it…
A: Variable cost and Fixed cost: When the demand is at its peak, variable costs would also increase…
Q: Roberto, Inc. manufactures products A and B. Both products have a contribution margin ratio of 40%.…
A: Here labor hours is constraint factor,so we should calculate contribution per labor minute and…
Q: Yasmine co. Can further process process product B to produce Product C. Product B is currently…
A: Product B costs to produce per pound = $ 28 Product B selling cost per pound = $ 30 Product C sell…
Q: Use this information for Carmen Co. to answer the question that follow. Carmen Co. can further…
A: Definition: Differential analysis: Differential analysis refers to the analysis of differential…
Q: Oxnard Industries produces a product that requires 2.6 pounds of materials per unit. The allowance…
A: Solution... Standard quantity used = 2.60 pounds Allowances for wastage = 0.30 pounds…
Q: Walters manufactures a specialty food product that can currently be sold for $22.80 per unit and has…
A: Formula: Incremental income of processing further = Revenue after further processing - Revenue…
Q: Tim Taylor has written a self improvement book that has the following cost characteristics: Selling…
A: Break even point = fixed cost/contribution per unit Where, Fixed cost = 98000+22800 = 120800…
Q: Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for…
A: The manufacturing corporation sometimes engages in further development of their original product to…
Q: Carmen Co. can further process Product J to produce Product D. Product J is currently selling for…
A: Given: Current selling price = $20 Selling price after processing = $38
Q: Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for…
A: Differential cost is the additional cost to be incurred for producing the product.
Q: Wheeler Company can produce a product that incurs the following costs per unit: direct materials,…
A: Compute the total cost in making the product and total cost in buying the buying the product. If the…
Q: Green Co. incurs a cost of $15 per pound to produce Product X, which it sells for $26 per pound. The…
A: The differential analysis is performed to compare two different alternatives.
Q: Stan Fawcett’s company is considering producing agear assembly that it now purchases from Salt Lake…
A: Cost is the price paid for a particular product or service.
Q: Zang Co. has the option to either further process product Alpha to produce Product Zeta. The selling…
A: From the given data, Production cost of Product Alpha for each unit = $23 Production cost of Product…
Q: Carmen Co. can further process Product J to produce Product D. Product J is currently selling for…
A: Differential cost of producing a product means where product can be further processed and further…
Q: Alnusairat company is processing Milk with a joint cost of $100000 to produce 2000 units of product…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: How do we calculate the differential cost of producing Product D?
A: The Differential cost is the difference between the cost of the final product and the cost of the…
Q: Yes Co. has the option to either further process product Y to produce Product Z. The selling price…
A: Differential cost: It is the difference in the cost of two different available alternatives. It is a…
Q: a. How many pounds of raw material are needed to make one unit of each of the two products? b. What…
A: Contribution margin: The contribution margin is computed based on the sale price subtracted with…
Q: (a) Write down the equation for (i) total revenue, (ii) total costs, (iii) profit. (b) Calculate…
A: Under Marginal costing fixed cost remains constant and variable cost changes with the change in the…
Q: (3) Yasmin Co. can further process Product B to produce Product C. Product B is currently selling…
A: Differential cost means cost of doing one activity over the other activity.
Q: ABC Company has limited number of machine hours that it can use for manufacturing two products, A…
A: Determination of product should be sold in which there is limited number of machine hours::…
Q: Peppertree Company has two divisions, East and West. Division East manufactures a component that…
A: If East division has excess capacity, the lowest price the east division will accept is to recover…
Q: Suppose that a manufacturer can produce a part for $9.00 with a fixed cost of $5,000. Alternately,…
A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…
Q: Raven, Inc. has a division that manufactures a component that sells for $185 and has a variable cost…
A: given that, selling price = $185 Variable cost = $50 Fixed cost per unit = $21
Q: Carmen Co. can further process Product J to produce Product D. Product J is currently selling for…
A: Formula : Differential revenue = Product D - product J
Q: Suppose that a manufacturer can produce a part for $8.00 with a fixed cost of $3,000. Alternately,…
A: The manufacturing process is a kind of physical activity that includes the conversion of raw…
Q: Carmen Co. can further process Product J to produce Product D. Product J is currently selling for…
A: Note: Differential cost is the difference between the cost of two or more alternative decisions.
Q: Grace Co. can further process Product B to produce Product C. Product B is currently selling for $24…
A: Revenue means the amount earned by selling the goods or services. Revenue is recognized in books of…
Q: Cobe Company has manufactured 255 partially finished cabinets at a cost of $63,750. These can be…
A: Sell or further processing analysis is made with a view to ascertain if processing a product further…
Q: A furniture manufacturing company has two main processes. Process Alpha that makes dinning table and…
A: Answer:- False Explanation:- Process beta should be selected for the very large production volume…
Q: Carmen Co. can further process Product J to produce Product D. Product J is currently selling for…
A: Solution.. Cost of product J = $15.25 Additional cost = $9.05 Cost of production D = Cost…
Q: Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for…
A: Differential cost of producing Product C = Cost of product C - Cost of product B where, Cost of…
Q: Carmen Co. can further process Product J to produce Product D. Product J is currently selling for…
A: Differential cost of producing Product D = Cost of product D - Cost of product J where, Cost of…
Q: Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for…
A: Solution.. Differential cost of producing Product C Cost of producing Product B = $28 Cost of…
Q: Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for…
A: Differential cost = Total cost of producing Product C - Total cost of producing Product B
Q: Oxnard Industries produces a product that requires 2.6 pounds of materials per unit. The allowance…
A: GIVEN Oxnard Industries produces a product that requires 2.6 pounds of materials per unit. The…
Q: Peppertree Company has two divisions, East and West. Division East manufactures a component that…
A: The lowest price they will accept is $1.57 per unit. If a company has enough excess capacity to…
Q: Cobb Co. can further process Product X to produce Product Y. Product X is currently selling for $30…
A: Using differential costing we will take decisions for a new proposal and it will compare additional…
Q: One hundred pounds of raw material W is processed into 60 pounds of X and 40 pounds of Y. Joint…
A: Additional revenue = Revenue from sale of product Z - Revenue from sale of product Y = (30 pounds x…
Q: asmin Co. can further process Product B to produce Product C. Product B is currently selling for $34…
A: Differential cost indicates the additional cost to be incurred for producing the other product.
Q: Diversity Ltd. produces and sells a product called Star. The company is currently selling 9,560…
A: Cost profit volume analysis helps to identify the posts under variable and fixed categories. Sales…
Q: Miles Co. can further process Product B to produce Product C. Product B is currently selling for P60…
A: Differential revenue is the amount of net increment of further processing. It can be calculated by…
Q: You are the Sales Manager for your company and you are evaluating orders from two customers but can…
A: Total Contribution margin on first order = No. of units x selling price x contribution margin ratio…
Q: Diversity Ltd. produces and sells a product called Star. The company is currently selling 9,560…
A: The question is related to Marginal Costing and Cost Volume Profit Analysis. The income statement as…
Q: Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for…
A: Differential cost: Differential cost is the analysis of the costs in different avenues, which could…
Q: Carmen Co. can further process Product J to produce Product D. Product J is currently selling for…
A: Differential cost alludes to the contrast between the expense or cost of two alternative choices.…
Q: Tim Taylor has written a self improvement book that has the following cost characteristics: Selling…
A:
Q: Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for…
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: Suppose that a manufacturer can produce a part for $8.00 with a fixed cost of $6,000. Alternately,…
A: Make or buy decision is an important managerial decision, in this decision management need to…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.Oat Treats manufactures various types of cereal bars featuring oats. Simmons Cereal Company has approached Oat Treats with a proposal to sell the company its top selling oat cereal bar at a price of $27,500 for 20,000 bars. The costs shown are associated with production of 20,000 oat bars currently. The manufacturing overhead consists of $3,000 of variable costs with the balance being allocated to fixed costs. Should Oat Treats make or buy the oat bars?
- Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of 300 and 600, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 300 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. 2. Identify the optimal amount that should be produced of each machine part and the total contribution margin associated with this mix. 3. What if market conditions are such that Patz can sell at most 75 units of Part A and 60 units of Part B? Express the objective function with its associated constraints for this case and identify the optimal mix and its associated total contribution margin.Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000
- Emerald Island Company is considering building a manufacturing plant in County Kerry. Predicting sales of 100,000 units, Emerald Isle estimates the following expenses: An Irish firm that specializes in marketing will be engaged to sell the manufactured product and will receive a commission of 10% of the sales price. None of the U.S. home office expense will be allocated to the Irish facility. Required: 1. If the unit sales price is 2, how many units must be sold to break even? (Hint: First compute the variable cost per unit.) 2. Calculate the margin of safety ratio. 3. Calculate the contribution margin ratio.Marshall s target margin of safety be in units and dollars if they required a $14,000 margin of safety?Shelby Industries has a capacity to produce 45.000 oak shelves per year and is currently selling 40,000 shelves for $32 each. Martin Hardwoods has approached Shelby about buying 1,200 shelves for a new project and is willing to pay $26 each. The shelves can be packaged in bulk; this saves Shelby $1.50 per shelf compared to the normal packaging cost. Shelves have a unit variable cost of $27 with fixed costs of $350,000. Because the shelves dont require packaging, the unit variable costs for the special order will drop from $27 per shelf to $25.50 per shelf. Shelby has enough idle capacity to accept the contract. What is the minimum price per shelf that Shelby should accept for this special order?
- Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all 30,000 for $240 each. Country Enterprises has approached Dimitri to buy 800 chairs for $210 each. Dimitris normal variable cost is $165 per chair, including $50 per unit in direct labor per chair. Dimitri can produce the special order on an overtime shift, which means that direct labor would be paid overtime at 150% of the normal pay rate. The annual fixed costs will be unaffected by the special order and the contract will not disrupt any of Dimitris other operations. What will be the impact on profits of accepting the order?Hatch Manufacturing produces multiple machine parts. The theoretical cycle time for one of its products is 65 minutes per unit. The budgeted conversion costs for the manufacturing cell dedicated to the product are 12,960,000 per year. The total labor minutes available are 1,440,000. During the year, the cell was able to produce 0.6 units of the product per hour. Suppose also that production incentives exist to minimize unit product costs. Required: 1. Compute the theoretical conversion cost per unit. 2. Compute the applied conversion cost per minute (the amount of conversion cost actually assigned to the product). 3. Discuss how this approach to assigning conversion cost can improve delivery time performance. Explain how conversion cost acts as a performance driver for on-time deliveries.Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided, If Reuben accepts the offer, what will the effect on profit be?