Bella Jewellery involve in assembles pearls and crystals to make brooch sets for festive seasons throughout...

 

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Bella Jewellery involve in assembles pearls and crystals to make brooch sets for festive seasons throughout the year. There are three types of brooch sets, Diamond, Platinum and Silver. The owner of the business Belly, gets her regular supply from Korean dealer but recently, due to the outbreak of SARS, all supplies from Korea have been halted. Fortunately, Belly has some spare pearls and crystals, enough for the next six months. The following is the information related to her company: Diamond RM 155.00 30.00 Required: i. Selling price Variable cost Overhead cost: Indirect material Indirect expense Usage of pearls ii. iii. 10 3 56 units Platinum RM 175.00 30.00 15 7 75 units Silver RM 115.00 32.00 18 16 45 units Calculate which brooch should be ranked first, second and third in terms of contributing to profits. Advise Belly which brooch sets should be produce or sold. What is relevant cost? Bella Jewellery involve in assembles pearls and crystals to make brooch sets for festive seasons throughout the year. There are three types of brooch sets, Diamond, Platinum and Silver. The owner of the business Belly, gets her regular supply from Korean dealer but recently, due to the outbreak of SARS, all supplies from Korea have been halted. Fortunately, Belly has some spare pearls and crystals, enough for the next six months. The following is the information related to her company: Diamond RM 155.00 30.00 Required: i. Selling price Variable cost Overhead cost: Indirect material Indirect expense Usage of pearls ii. iii. 10 3 56 units Platinum RM 175.00 30.00 15 7 75 units Silver RM 115.00 32.00 18 16 45 units Calculate which brooch should be ranked first, second and third in terms of contributing to profits. Advise Belly which brooch sets should be produce or sold. What is relevant cost?

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ANSWER 1 The brooch sets should be ranked in the following order in terms of contributing to profits ... View the full answer