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Mastery Test Week 4 - 500,000 Decrease in profits by...

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X X Production Line .40 x 30,000 12,000 Inspection 20 x 1,500 30,000 Machine 40 x 5000 200,000 242,000 Add Fixed Cost 530,000 772,000/10,000 units produced = $77.20 per unit 77.20 X Lost contribution margin outdoor 700,000 Indoor 2,000,000 x 10% = 200,000 Total lost contribution margin = 900,000 Less fixed cost 800,000 -400,000 = 400,000 -500,000 -500,000 Make Buy Direct materials 4 x 50,000 200,000 Direct labor 3 x 50,000 150,000 Viable manu Overhead 1 x 50,000 50,000 Fixed manu overhead traceable 75,000 (50% of 150,000) Purchase from outside supplier 500,000 Total costs 475,000
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Unformatted text preview: 500,000 Decrease in profits by $25,000 X X al Revenue 14 x 2000 28,000 al Costs Per unit 2000 T’s erial 3.00 6000 or 2.00 4000 anu overhead 1.00 2000 elling and admin 1.50 3000 s: cost special order 10,000 emental Costs 25,000 al operating Income 28,000 – 25,000 = 3,000 Product X Product Z 210,000 135,000 140,000 130,000 70,000 5,000 60,000 20,000 10,000 -15,000 Product Y 270,000 200,000 70,000 55,000 15,000 X Mastery Test Week 4 Question 1 Question 2 Question 3 Question 4 Question 5 Question 6 Question 7 Question 8...
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