HW_Chapter 4 - 28-Apr Status Quo Spe. Offer Difference...

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Unformatted text preview: 28-Apr Status Quo Spe. Offer Difference $20,000 $21,050 $1,050 $0 $10,000 $10,450 ($450) $6,000 $6,000 $0 $4,000 $4,600 $600 $1,000 $1,000 $0 $1,000 $1,000 $0 $2,000 $2,600 $600 Sales Cost of materials Var. Cost Fixed Cost Gross profit Var. admi. Costs Fixed admin. Costs Operatio profit Operation profit will increase for $600.00 4-31 Per Unit a. Direct Materials Direct Labor Var. overhead Fixed Costs Total Costs $2 $1 $1 $2 $6 10,000 Units 1,000 units $20,000 $2,000 $10,000 $1,000 $5,000 $500 $20,000 $0 $55,000 $3,500 Cost of materials Var. Cost Total Contr. Fixed Costs Operation profit Status Quo Spe. Offer Difference $60,000 $65,000 $5,000 $35,000 $38,500 ($3,500) $25,000 $26,500 ($1,500) $20,000 $20,000 $0 $5,000 $6,500 $1,500 operation profit will increase for $1500 b. 4-33 $3.5 30.00-x=4.5 x=25.5 highest acceptable manufactoring cost is $25.50 Status Quo alternative process outsourcing Difference $50,000 $220,000 170000 h $106,000 $0 106000 l $32,000 $0 32000 l $94,000 $54,000 40000 l $282,000 $274,000 8000 lower 4-38 Direct Materials Direct Labor Var. overhead Fixed Costs Total Costs Mobility wants to save at list $10,000, but they save only $8,000 with this offer, so they should not buy. 4-39 a. CompDesck's Bottle neck is in capacity of Building 1, that produce tables. It's monthly capacity is 100 units lower, t Company can sell 500 desks with chairs, bu because of the capacity of building 1, they can sell 400 sets only. 400 units 500 units Difference b. Sales Var. Costs Fixed Costs Total Costs $120,000 $50,000 x $150,000 30000 h $75,000 25000 h x+10,000 10,000 l 5,000 lower No. CompDesk should not produce desks on weekend, because their operation profit will decrease for $5,000 c. Sales Var. Costs Fixed Costs Total Costs 400 units 500 units Difference $120,000 $150,000 30000 h $50,000 $62,500 12,500 l x x+20,000 20,000 l 2,500 lower No. CompDesk should not produce desks on weekend, because their operation profit will decrease for $2,500 y should not buy. capacity is 100 units lower, then capacity of Building 2. y can sell 400 sets only. will decrease for $5,000 will decrease for $2,500 ...
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HW_Chapter 4 - 28-Apr Status Quo Spe. Offer Difference...

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