Question: Please Help, I'm struggling on Req C1 and Req C2. Unter Components manufactures low-cost navigation systems for installation in ride-sharing cars. It sells these systems

Please Help,
I'm struggling on Req C1 and Req C2.
Please Help, I'm struggling on Req C1 and Req C2. Unter Components
manufactures low-cost navigation systems for installation in ride-sharing cars. It sells these
systems to various car services that can customize them for their locale
and business model . It manufactures two systems, the Startoo and the

Unter Components manufactures low-cost navigation systems for installation in ride-sharing cars. It sells these systems to various car services that can customize them for their locale and business model . It manufactures two systems, the Startoo and the Star150, which differ in terms of capabilities. The following information is available Costs per unit Star 100 Starise Direct materials $ 130 $ 150 Direct labor 60 80 Variable overhead 40 Fixed overhead 180 240 Total cost per unit $ 400 $ 510 Price $ 580 $ 780 Units sold 2,000 30 The average wage rate is $40 per hour. Variable overhead varies with the quantity of direct labor hours. The plant has a capacity of 20,000 direct labor-hours, but current production uses only 10,000 direct labor-hours. Required: a. A nationwide car sharing service has offered to buy 2,500 Star100 systems and 2.500 Star150 systems af the price is lowered to $400 and $500, respectively, per unit --1. If Unter accepts the offer, how many direct labor-hours will be required to produce the additional systems -2. Complete the following table to determine the differential profit increase for decrease) if Unter accepts this proposal Prices on regulor sales will remain the same b-1. Suppose that the car-sharing has offered instead to buy 3,500 each of the two models ar $400 and $500, respectively. This customer will purchase the 3,500 units of each model only in an all-or-nothing deal . That is. Unter must provide all 3,500 units of each model or none Unter's management has decided to fill the entire special order for both models. In view of its capacity constraints, Unter will reduce sales to regulor customers as needed to fill the special order. Complete the table below to determine the total contribution margin with the special order added Requirea: a. A nationwide car sharing service has offered to buy 2,500 Star100 systems and 2,500 Star150 systems if the price is lowered to $400 and $500, respectively, per unit --1. if Unter accepts the offer, how many direct labor hours will be required to produce the additional systems? --2. Complete the following table to determine the differential profit increase for decrease) Unter accepts this proposal. Prices on regular sales will remain the same b-1. Suppose that the car sharing has offered instead to buy 3,500 each of the two models at $400 and $500, respectively. This customer will purchase the 3,500 units of each model only in an all-oc-nothing deal. That is, Unter must provide all 3,500 units of each model or none Unter's management has decided to fill the entire special order for both models. In view of its capacity constraints, Unter will reduce sales to regular customers as needed to fill the special order. Complete the table below to determine the total contribution margin with the special order added b-2. How much will the profits change if the order is accepted? Assume that the company cannot increase its production capacity to c-1. Assume that in the situation presented in requirement b-1, the plant can work overtime Direct labor costs for the overtime production increased to $60 per hour. Variable overhead costs for overtime production are $10 per hour more than for normal production Complete the table below to determine the total contribution margin. c-2. How much will the profits change in this situation? meet the extra demand Reg Al Reg A2 Req B1 Red B2 Req c1 Reg C2 Assume that, in the situation presented in requirement b-1, the plant can work overtime. Direct labor costs for the overtime production increased to $60 per hour. Variable overhead costs for overtime production are $10 per hour more than for normal production. Complete the table below to determine the total contribution margin. Star 100 Star 150 Total Special Order Contribution margin per unit $ 180 s 230 Number of units 3,500 3,500 Total contribution margin $ 630,000 805,000 $ 1,435.000 Regutar production Contribution margin per unit $ 360 $ 510 Number of units 1,500 2,000 Total contribution margin $ 540,000 $ 1 020 000 $ 1.560,000 Total contribution margin for both $ 2,995.000 Additional direct labor costs Additional variable overhead Total contribution margin for both (with additional costs) $ 2,995.000 Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Req B1 Req B2 ReqC1 Reg C2 How much will the profits change in this situation? increase in profit 1.375.000

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