A). Cosco India Ltd. manufactures softballs for local and international sales. For the first three months...

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A). Cosco India Ltd. manufactures softballs for local and international sales. For the first three months of 2023, the company reported the following operating results while operating at 80% of plant capacity and producing 160,000 units. Sales Cost of goods sold Selling and administrative expenses Net income Amount $4,000,000 2,720,000 320,000 $960,000 Per Unit Direct Material Direct Labor Factory overhead (Variable) Factory overhead (Fixed) Total Costs Fixed costs for the period were cost of goods sold $800,000, and selling and administrative expenses $160,000. In April, Cosco receives a special order for 30,000 softballs at $15 each from the Jaipur Sports Council. Should Cosco India Ltd. accept or reject the special order? Show detailed analysis to justify your decision. $25 17 2 $6 B). FORD MOTORS executive in the USA is trying to decide whether the company should continue to manufacture an engine component or purchase it from Motor Parts Corporation for $100 each. Demand for the coming year is expected to be the same as for the current year, 50,000 units. Data for the current year is: $2,500,000 950,000 550,000 1,500,000 $5,500,000 If FORD MOTORS makes the components, the unit costs of direct material will increase by 20%. If FORD MOTORS buys the components, 20% of the fixed costs will be avoided. The other 80% will continue regardless of whether the components are manufactured or purchased. Assume that variable overhead varies with output volume. Assume that the capacity now used to make the components will become idle if the components are purchased. Should FORD MOTORS make or buy the components. Justify your decision with proper data / reasons? A). Cosco India Ltd. manufactures softballs for local and international sales. For the first three months of 2023, the company reported the following operating results while operating at 80% of plant capacity and producing 160,000 units. Sales Cost of goods sold Selling and administrative expenses Net income Amount $4,000,000 2,720,000 320,000 $960,000 Per Unit Direct Material Direct Labor Factory overhead (Variable) Factory overhead (Fixed) Total Costs Fixed costs for the period were cost of goods sold $800,000, and selling and administrative expenses $160,000. In April, Cosco receives a special order for 30,000 softballs at $15 each from the Jaipur Sports Council. Should Cosco India Ltd. accept or reject the special order? Show detailed analysis to justify your decision. $25 17 2 $6 B). FORD MOTORS executive in the USA is trying to decide whether the company should continue to manufacture an engine component or purchase it from Motor Parts Corporation for $100 each. Demand for the coming year is expected to be the same as for the current year, 50,000 units. Data for the current year is: $2,500,000 950,000 550,000 1,500,000 $5,500,000 If FORD MOTORS makes the components, the unit costs of direct material will increase by 20%. If FORD MOTORS buys the components, 20% of the fixed costs will be avoided. The other 80% will continue regardless of whether the components are manufactured or purchased. Assume that variable overhead varies with output volume. Assume that the capacity now used to make the components will become idle if the components are purchased. Should FORD MOTORS make or buy the components. Justify your decision with proper data / reasons?

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A Analysis for Cosco India Ltd To determine whether Cosco India Ltd should accept or reject the special order for 30000 softballs at 15 each from the Jaipur Sports Council lets analyze the relevant co... View the full answer