exam 4 study

exam 4 study - Question 1 5 points Save Bayshore Company...

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Question 1 5 points Save Bayshore Company manufactures and sells Product K. Results for last year are as follows: Bayshore is reexamining all of its product lines and is trying to decide whether to discontinue Product K. Dropping the product would have no effect on the total fixed manufacturing overhead incurred by the company. Reference: 13-2 Assume that dropping Product K would result in a $15,000 increase in the contribution margin of other product lines. If Bayshore chooses to drop Product K, then the change in net operating income next
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Question 1 5 points Save year due to this action will be a:
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Question 2 5 points Save Elferts Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 70,000 units per month is as follows: The normal selling price of the product is $85.80 per unit. An order has been received from an overseas customer for 4,000 units to be delivered this month at a special discounted price. This order would have no effect on the company's normal sales and would not change the total amount of the company's fixed costs. The variable selling and
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Question 2 5 points Save administrative expense would be $0.60 less per unit on this order than on normal sales. Direct labor is a variable cost in this company. Reference: 13-12 Suppose there is not enough idle capacity to produce all of the units for the overseas customer and accepting the special order would require cutting back on production of 100 units for regular customers. The minimum acceptable price per unit for the special order is closest to: Question 3 5 points Save The Madison Company produces three products with
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Question 3 5 points Save the following costs and selling prices: Reference: 13-16 If Madison has a limit of 10,000 direct labor hours but no limit on machine hours, then the three products should be produced in the order: Question 4 5 points Save Craves Company makes four products in a single facility. Data concerning these products appear below: The milling machines are potentially the constraint in the production facility. A total of 10,400
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Question 4 5 points Save minutes are available per month on these machines. Reference: 13-15 Up to how much should the company be willing to pay for one additional hour of milling machine time if the company has made the best use of the existing milling machine capacity? (Round off to the nearest whole cent.) Question 5 5 points Save The Molis Company has the capacity to produce 15,000 haks each month. Current regular production and sales are 10,000 haks per month at a selling price of $15 each. Based on
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Question 5 5 points Save this level of activity, the following unit costs are incurred: The fixed costs, both manufacturing and administrative, are constant in total within the relevant range of 10,000 to 15,000 haks per month. The Molis
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This note was uploaded on 04/03/2008 for the course MGT 300IW taught by Professor Allbriton,mitchell,bowers during the Spring '08 term at N. Arizona.

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exam 4 study - Question 1 5 points Save Bayshore Company...

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