1. Asad produces Standard and Deluxe sunglasses: 2. - X Data Table Requirements 1. Asad produces Standard...

1. Asad produces Standard and Deluxe sunglasses:

2.

 
 

Transcribed Image Text:

- X Data Table Requirements 1. Asad produces Standard and Deluxe sunglasses: E (Click the icon to view the cost data.) A (Click the icon to view additional information.) 3. A local home improvement warehouse store shows the following product line income statement for the month. All common fixed costs are allocated to departments based on percentage of sales revenue generated by the department. E (Click the icon to view the product line income statement for the month.) Per Pair Assuming machine hours is a constraint, which model should Asad emphasize? Assuming $27,000 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the Lighting Department would be replaced with a Hardware Department that is expected to have sales of S160,000, variable costs of $76.000 and new direct fixed costs of $28.000. Standard Deluxe 2. Mountain View incurs the following costs for 15,000 pairs of its high-tech hiking socks: E (Click the icon to view the costs.) A (Click the icon to view additional information.) Sale price 25 $ 40 Variable expenses........ - X Identify and analyze the alternatives. What is the best course of action? 22 28 Data Table Requirement 1. Assuming machine hours is a constraint, which model should Asad emphasiz - X Data Table Print Product Mix Decision Standard Deluxe A B C D E 1 Paint Lumber Lighting Store Total Less: Direct materials. $ 19,000 2 Sales $ 500,000 $ 400,000 $ 100,000 $ 1,000,000 Contribution margin per unit Direct labor. 51,000 3 Less: Variable Costs 300,000 160,000 50,000 510,000 Multiply by: Variable manufacturing overhead... 55,000 4 Contribution margin 200,000 240,000 50,000 490,000 85,000 Fixed manufacturing overhead 5 Less: Direct Fixed Costs 50,000 40,000 35,000 125,000 $ 210,000 Multiply by: Total manufacturing cost 6 Less: Common Fixed Costs 100,000 80,000 20,000 200,000 $ Cost per pair ($210,000 + 15,000) ....... 14 Total contribution margin at full capacity 7 Operating Income (Loss) $ 50,000 S 120,000 $ (5,000) s 165,000 Asad should emphasize the model because it has the higher Print Done Print Done Requirement 2. Identify and analyze the alternatives. What is the best course of action? Begin by selecting the labels and calculating the net cost when Mountain View is making the socks, then calculate the net cost when Mountain View is outsourcing the socks when (1) the facilities are idle and wnen (2) the raciNties are used to make other products. (Complete all input nelos. Enter a zero for any zero amounts.) Outsource Socks Incremental Analysis Make Facilities Make Other Outsourcing Decision Socks Idle Products Plus: Total cost of producing 15,000 socks Less: Net cost Choose from any list or enter any number in the input fields and then continue to the next question. - X Data Table Requirements 1. Asad produces Standard and Deluxe sunglasses: E (Click the icon to view the cost data.) A (Click the icon to view additional information.) 3. A local home improvement warehouse store shows the following product line income statement for the month. All common fixed costs are allocated to departments based on percentage of sales revenue generated by the department. E (Click the icon to view the product line income statement for the month.) Per Pair Assuming machine hours is a constraint, which model should Asad emphasize? Assuming $27,000 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the Lighting Department would be replaced with a Hardware Department that is expected to have sales of S160,000, variable costs of $76.000 and new direct fixed costs of $28.000. Standard Deluxe 2. Mountain View incurs the following costs for 15,000 pairs of its high-tech hiking socks: E (Click the icon to view the costs.) A (Click the icon to view additional information.) Sale price 25 $ 40 Variable expenses........ - X Identify and analyze the alternatives. What is the best course of action? 22 28 Data Table Requirement 1. Assuming machine hours is a constraint, which model should Asad emphasiz - X Data Table Print Product Mix Decision Standard Deluxe A B C D E 1 Paint Lumber Lighting Store Total Less: Direct materials. $ 19,000 2 Sales $ 500,000 $ 400,000 $ 100,000 $ 1,000,000 Contribution margin per unit Direct labor. 51,000 3 Less: Variable Costs 300,000 160,000 50,000 510,000 Multiply by: Variable manufacturing overhead... 55,000 4 Contribution margin 200,000 240,000 50,000 490,000 85,000 Fixed manufacturing overhead 5 Less: Direct Fixed Costs 50,000 40,000 35,000 125,000 $ 210,000 Multiply by: Total manufacturing cost 6 Less: Common Fixed Costs 100,000 80,000 20,000 200,000 $ Cost per pair ($210,000 + 15,000) ....... 14 Total contribution margin at full capacity 7 Operating Income (Loss) $ 50,000 S 120,000 $ (5,000) s 165,000 Asad should emphasize the model because it has the higher Print Done Print Done Requirement 2. Identify and analyze the alternatives. What is the best course of action? Begin by selecting the labels and calculating the net cost when Mountain View is making the socks, then calculate the net cost when Mountain View is outsourcing the socks when (1) the facilities are idle and wnen (2) the raciNties are used to make other products. (Complete all input nelos. Enter a zero for any zero amounts.) Outsource Socks Incremental Analysis Make Facilities Make Other Outsourcing Decision Socks Idle Products Plus: Total cost of producing 15,000 socks Less: Net cost Choose from any list or enter any number in the input fields and then continue to the next question.

Answer rating: 100% (QA)

1 Make Outsource Difference Variable costs 149400 531860 382460 Plus Fixed cos... View the full answer