Chap 14 & 15 sol

Chap 14 & 15 sol - Ex 14-45 Sales Variable costs...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Ex 14-45 Carpet WP Sales 380,000 460,000 140,000 Variable costs 228,000 322,000 112000 Contribution margin. 152,000 138,000 28,000 CM Ratio 0.4 0.3 0.2 1 If Wal paper operation is closed Loss of contribution from WP -28,000 Increase in contribution from carpet 65000 Remodeling cost -12400 4133.3333333 Saving in fixed cost 18000 Loss of contribution from P&S -30400 Increase in Advertisement -25000 -12,800 Ex 14-47 Total Per unit Purchased components 120,000 12 Assembly labor 300,000 30 300,000 30 Total relevant cost 720,000 72 Ex 14-51 1 Incremental cost of B81 Direct material 3.75 Direct labor 4.50 Variable overhead 2.25 Total variable cost per unit 10.50 Purchase price 13.50 Loss per unit if purchased -3.00 Loss per mach hr if purchased -1 T79 B81 2Purchase price quoted 11.25 13.50 Direct material 2.25 3.75 Direct labor 4.00 4.50 Variable overhead 2.00 2.25 Total variable cost 8.25 10.50 Net benefit of making 3.00 3.00 Mach hrs per unit 2.5 3 Benefit from mach hr 1.2 1 Best Use 8000 units of T79
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Ask a homework question - tutors are online