Please use exact same spreadsheet format.

Problem D (eliminate department) Following products made and sold by Ranger Company: are sales and other operating data for the three Product Sales C $200,000 Total $600,000 $1,100,000 $300,000 Manufacturing costs: Fixed $60,000 $ 60,000 $20,000 $140,000 Variable 280.000 220.000 Selling and administrative expenses: 20,000 20,000 $ 280,000 $ 20,000 100.000 600.000 Fixed Variable 40,000 Total costs $ 400,000 Net income $ 200,000 20,000 12,000 30,000 $202,000 $(2,000) 52,000 90,000 $ 882.000 $218,000 In view of the net loss for Product C, Ranger's management is considering dropping that product. All variable costs are direct costs and would be eliminated if Product C were dropped. Fixed costs are indirect costs; no fixed costs would be eliminated. Assume that the space used to produce Product C would be left idle. Would you recommend the elimination of Product C? Give supporting computations. Problem E (sell as is or process further) Sierra Lumber Company produces lumber. The company has two grades of lumber at the split-off point, A and B. Grade A sells for $4 per board foot and Grade B sells for $2 per board foot. This lumber is suitable for framing and most exterior work but not for the interior of buildings. Either grade can be further processed to make it suitable for interior work at a cost of $1.20 per board foot. After this further processing, the firm can sell Grade A lumber for $5.50 per board foot and Grade B for $3.00 per board foot. Would you recommend the company sell the lumber at the split-off point or process it further to make it suitable for interior work? Explain and give supporting computations. Problem F (make or buy) Skate-Right Company, a skatebo ard manufacturer, is currently operating at 60% capacity and producing about 8,000 units a year. To use more capacity, the manager has been considering the research and development department's suggestion that the company manufacture its own wheels. Currently the company purchases wheels from a supplier at a unit price of $20. (Each unit is a set of wheels for a skateboard.) Estimates show the company can manufacture its own wheels at $10 for direct materials costs and $4 for direct labor cost per unit. The variable factory overhead is$1 per unit. The company's accountants would probably allocate another $6 per unit to the wheels. a. Should Skate-Right make or buy the wheels? b. Suppose Skate-Right could rent out the factory space needed to make the wheels for $5,000 a month. How would this affect your decision in (a), if at all? 14 B I fx Ch 10 Homework A C E F G 30 Problem D 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 Decision: 47 48 Problem E 45 50 Grade A Grade 8 51 52 53 54 55 56 57 60 61 Decision: 62