test chapter 13

test chapter 13 - 1. Hayase Corporation processes sugar...

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1. Hayase Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $34.8 to buy from farmers and $13.4 to crush in the company's plant. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. The beet fiber can be sold as is for $26.8 or processed further for $9.2 to make the end product industrial fiber that is sold for $41.4. The beet juice can be sold as is for $36.7 or processed further for $19.4 to make the end product refined sugar that is sold for $46.1. How much profit (loss) does the company make by processing one batch of sugar beets into the end products industrial fiber and refined sugar? $17.5 ($76.8) $10.7 ($6.8) 2. Vanikoro Corporation currently has two divisions which had the following operating results for last year: Since the Rubber Division sustained a loss, the president of Vanikoro is considering the elimination of this division. All of the fixed costs for the division could be eliminated if the division was dropped. If the Rubber Division was dropped at the beginning of last year, how much higher or lower would Vanikoro's total net operating income have been for the year? $50,000 higher $100,000 lower $40,000 lower $10,000 higher Vanikoro Corporation currently has two divisions which had the following operating results for last year: Cork Rubber Division Division Sales $617,000 $294,000 Variable costs 307,000 200,000 Contribution margin 310,000 94,000 Fixed costs for the division 94,000 55,000 Segment margin 216,000 39,000 Allocated corporate fixed costs 89,000 82,000 Net operating income (loss) $ 127,000 $(43,000 ) Since the Rubber Division sustained a loss, the president of Vanikoro is considering the elimination of this division. All of the fixed costs for the division could be eliminated if the division was dropped. If the Rubber Division was dropped
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at the beginning of last year, how much higher or lower would Vanikoro's total net operating income have been for the year? $43,000 higher $82,000 higher $39,000 lower $94,000 lower Green Company produces 1,000 parts per year, which are used in the assembly of one of its products. The unit product cost of these parts is: The part can be purchased from an outside supplier at $20 per unit. If the part is purchased from the outside supplier, two thirds of the fixed manufacturing costs can be eliminated. The annual impact on the company's net operating income as a result of buying the part from the outside supplier would be: $5,000 increase $1,000 decrease $1,000 increase $2,000 decrease 5. Green Company produces 2,700 parts per year, which are used in the assembly of one of its products. The unit product cost of these parts is: Variable manufacturing cost $11.7 Fixed manufacturing cost 6 Unit product cost $17.7 The part can be purchased from an outside supplier at $15.9 per unit. If the part is purchased from the outside
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This note was uploaded on 12/13/2011 for the course ACCT 201 taught by Professor Balli during the Spring '11 term at greenriver.edu.

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test chapter 13 - 1. Hayase Corporation processes sugar...

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