Question: Clifton Instruments is a small components maker located in Kansas. The company specializes in aircraft instruments and focuses its production around a single family
Clifton Instruments is a small components maker located in Kansas. The company specializes in aircraft instruments and focuses its production around a single family of products. Recently, one of the new members of the company's board of directors suggested the company could increase its profitability by adding a second product line with an increase in the rent the company currently pays on its manufacturing facility of only 10 percent. The board member had to resign because of a conflict of interest before presenting the analysis. An incomplete spreadsheet, below. was all that was available. Required: Complete the below table by filling in the blank cells. Note: Enter all amounts as positive values. Clifton Instruments Projected Income Statement For One Year (5000) Status Quo: % Increase Alternative Difference Single Product (Decrease) Two Products: Sales revenue 25 % $ 41,424 Costs Material $ 85,000 22 % Labor % 11,310 2,610 Rent 44,000 Depreciation 12,000 15 % 13,800 1,800 Utilities 30 % 11,310 Other 4,400 1,100 Total costs $ 162,800 Operating profit $ 13,100
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Lets fill in the blanks step by step Step 1 Material Costs Status Quo 65000 Increase 22 The alternative two products cost will be Alternative Cost Sta... View full answer
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