Titleist Inc produces two types of golf balls for the retail consumer. They want to know...

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Titleist Inc produces two types of golf balls for the retail consumer. They want to know which golf ball produces the greatest profit and they want to maintain at least $1.50 of profit per golf ball, for each line. If this is not possible, they need to eliminate the line. ProV1 TruFeel Total Direct Material Cost $6,250 $54,000 Total Direct Labor Cost $2500 $27,000 ProV1 Activities Production Volume Liquid materials - plastic coating Dry materials - rubber Painting Packaging Machine setups Machine hours 12,500 golf balls 1,400 gallons 620 lbs. 12,500 golf balls 3 balls per box 500 setups 200 MH TruFeel 180,000 golf balls 37,000 gallons 12,000 lbs. 180,000 golf balls 12 balls per box 300 setups 3,750 MH Cost Department Driver Mixing: Liquid materials gallons $2,304 Dry materials pounds $6.941 Utilities machine hours $1,422 Packaging: Packages balls per box $77,000 Painting units $6,525 Machine setup setups $20,000 Calculate the activity rates for each cost driver for ProV1 and TruFeel product lines. Determine the total overhead cost assigned to the ProV1 and TruFeel product lines using activity-based costing. What is the overhead cost per golf ball for ProV1? What is the overhead cost per golf ball for TruFeel? If ProV1 sells for $5.00 per golf ball, how much profit does the company earn per golf ball it sells? If TruFeel sells for $3.00 per golf ball, how much profit does the company earn per golf ball that it sells? Project Proposal Summary: You are part of the management team tasked with looking at the golf ball product lines for Titleist. The CEO has asked you to do a financial analysis of the two ball lines and report your findings to him at the next board meeting. The company wants to make a minimum gross profit of $1.50 per golf ball. What is the minimum selling price that the company should set per golf ball for each product line? Does the company need to eliminate any product lines based on this financial data? Please explain. Titleist Inc produces two types of golf balls for the retail consumer. They want to know which golf ball produces the greatest profit and they want to maintain at least $1.50 of profit per golf ball, for each line. If this is not possible, they need to eliminate the line. ProV1 TruFeel Total Direct Material Cost $6,250 $54,000 Total Direct Labor Cost $2500 $27,000 ProV1 Activities Production Volume Liquid materials - plastic coating Dry materials - rubber Painting Packaging Machine setups Machine hours 12,500 golf balls 1,400 gallons 620 lbs. 12,500 golf balls 3 balls per box 500 setups 200 MH TruFeel 180,000 golf balls 37,000 gallons 12,000 lbs. 180,000 golf balls 12 balls per box 300 setups 3,750 MH Cost Department Driver Mixing: Liquid materials gallons $2,304 Dry materials pounds $6.941 Utilities machine hours $1,422 Packaging: Packages balls per box $77,000 Painting units $6,525 Machine setup setups $20,000 Calculate the activity rates for each cost driver for ProV1 and TruFeel product lines. Determine the total overhead cost assigned to the ProV1 and TruFeel product lines using activity-based costing. What is the overhead cost per golf ball for ProV1? What is the overhead cost per golf ball for TruFeel? If ProV1 sells for $5.00 per golf ball, how much profit does the company earn per golf ball it sells? If TruFeel sells for $3.00 per golf ball, how much profit does the company earn per golf ball that it sells? Project Proposal Summary: You are part of the management team tasked with looking at the golf ball product lines for Titleist. The CEO has asked you to do a financial analysis of the two ball lines and report your findings to him at the next board meeting. The company wants to make a minimum gross profit of $1.50 per golf ball. What is the minimum selling price that the company should set per golf ball for each product line? Does the company need to eliminate any product lines based on this financial data? Please explain.

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Answer To solve this problem we need to calculate the activity rates for each cost driver for the ProV1 and TruFeel product lines determine the total ... View the full answer