Question: help with these exercises please Complete the following table to show the effect on Nederlander's profit if it keeps or eliminates the Fiets product line.


Complete the following table to show the effect on Nederlander's profit if it keeps or eliminates the Fiets product line. Keep Fiets Drop Fiets 4,800 Contribution margin Advertising expense Depreciation of special equipment Salaries of segment manager Indirect fixed costs Net operating income (loss) 0 1,280 0 960 0 0 480 2,700 X -2,700 X 2,400 -320.00 -2,340.00 X Incremental profit (loss) Should Nederlander drop the Fiets? Yes Exercise 4 Golf Co made 3,000 novelty golf balls last year. The balls normally sell for $7 each. The costs per ball were as follows: 2 $1.00 Direct materials $0.50 Direct labor 4 $4.00 $0.50 $6.00 Overhead Selling expenses 6 Total cost per ball 7 This year an overseas company approached Golf Co and asked them to sell an 900 golf balls at $6 each. The sale isn't expected to affect current sales. Most of Golf Co's overhead is fixed, but variable overhead costs are $1.2 per unit. Selling expenses will increase to $1.10 per unit on the special order. Complete the table to determine the incremental profit on the order. 1 2 Accept Reject X Sales Direct materials Direct labor X X $0 X $0 S0 Overhead Selling expenses Profit $0 What is the incremental profit on the order? $0 Should Golf Co accept the order? F GH C Diverse Company makes three products that require a special raw material that is in limited supply. To follow is the financial and production data per unit: Prod C Prod B Prod A $70.00 $49.00 $21.00 $105.00 $75.60 $29.40 $84.00 $70.00 $14.00 Sales price Variable costs Contribution margin 1 Material required in pounds 2 Diverse company only has 3514 pounds of the material required to make its products. Calculate the contribution margin per pound and determine the most profitable sales mix given the limited supply of materials and product demand of 700 units for product A, 1190 units of product B and 560 units of product C. Prod C Prod A Prod B xxx XX $0.00 Contribution margin per pound $0.00 $0.00 XXX 0 lbs O lbs O lbs Lbs material needed to meet demand |X Most profitable sales mix (in units) 0 0
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
