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Instructor note: See page 495 and 496 for how to set up the incremental analysis (illustration 12-4)Net IncomeReject Order Accept OrderIncrease (Decrease)a.)$0 $280,000.00 ($280,000.00)Costs0$261,250.00 ($261,250.00)Net Income$0 $18,750.00 ($18,750.00)b.)c.)$26.13 cost per unit$5.00 increase in selling price$31.13 Minimum selling price to produce net income of $5.00 per balld.)The ThreePoint Sports shoould accept the special order as it increases their income by $18,750.Management should consider the employee moral, becasue the employees are the
Management should consider the employee moral, becasue the employees are the are out in the fields of production and operation process. Also they could consider treputation they would gain by selling to the new company even if its good or bad.
Calculating variable prices for units$405,000.00 Variable administrative and selling costs12,000 units prduced3.38 new variable administrative and selling costs2,640,000.00 Variable administrative and selling costs$120,000.00 units prduced$22.00 variable cost of goods per unit25.38 cost per unit26.13 order cost per unit)ones that
ones that the
Instructor note: See page 497 and 498 for how to set up the incremental analysia.)MAKE CISCOBUY CISCODirect Materials$38,400.00 $0 Direct Labor$34,400.00 $0 Variable Manufacturing Costs$6,640.00 $2,800.00 Fixed Manufacturing Costs$5,200.00 $3,000.00 Purchase Price $0 $80,000 Total Annual Cost$84,640.00 $85,800.00 b.)Purchasing CISCO units would result as the net income decreased ofshould decide to manufacture CISCO instead of purchasing it.
c.)d.)should decide to manufacture CISCO instead of purchasing it. Total Cost$87,640.00 $85,800.00
is (illustration 12-6 & 12-7)NET INCOME INCREASE/DECREASE$38,400.00 $34,400.00 $3,840.00 $2,200.00 ($80,000)($1,160.00)f $1,160.00. Management
NET INCOME INCREASE/DECREASE($1,160.00)$3,000.00 $1,840.00 d to $1,840, which is larger than the net ny should decide to buy instead of ng products of the expected quality, are
Determine if product should be sold or processed further.Thompson Industrial Products Inc. (TIPI) is a diversified industrial-cleaner processing coproduces two products: a table cleaner and a floor cleaner from a common set of chemiounces of chemical input are processed at a cost of $210,000 into 600,000 ounces of flocleaner. The floor cleaner has no market value until it is converted into a polish with theprocessing costs for this conversion amount to $240,000.FloorShine sells at $20 per 30-ounce bottle. The table cleaner can be sold for $17 pcleaner can be converted into two other products by adding 300,000 ounces of another of table cleaner. This joint process will yield 300,000 ounces each of table stain removeadditional processing costs for this process amounts to $100,000.