Question: pls help with all questions!!!! Sell or Process Further, Basic Analysis Carleigh, Inc, is a pork processor its plants, located in the Midwest, produce several


Sell or Process Further, Basic Analysis Carleigh, Inc, is a pork processor its plants, located in the Midwest, produce several products from a common process iron roasts, chops, spare ribs, and the residual. The roasts, chops, and spareribs are packaged, branded, and sold to supermarkets. The residual consists of organ meats and leftover pieces that are sold to sourage and hot dog processors. The joint costs for a typical week are as follows Direct materials $91,500 Direct labor 25,000 Overhead 27,000 The revenues from each product are as follows: Sirloin roasts, 174,000, chops, 571,000, spareribs, $35,500, and residus, 56,600 Carleigh's management has learned that certain organ meats are a prized delicacy in Asia. They are considering separating those from the residual and selling them abroad for $56,200 This would bring the value of the residual down to $2,600. In addition, the orgon meats would need to be packaged and then air freighted to Asia Further procesung.com per week is estimated to be $30,700 (the cost of renting additional packaging equipment, purchasing materials, and hiring additional direct libot). Transportation cost would be 510,000 per week ninally, resource spending would need to be expanded for other activities as well purchasing, receiving and internal shipping). The increase in resource Spending for these activities is estimated to be $3,250 per week Required: 1. What is the gross profiteamed by the original mix of products for one week? 2. Should the company separate the organ meats for shipment overseas or continue to sell them at split olt? What is the effect of the decision on weekly gross profit? by Special Order Decision, Alternatives, Relevant costs Redwood Elegance Company, manufactures wooden coffee tables for sale to specialty furniture stores. Currently, the company is operating at 30 percent of capacity. A chain of furniture outlet stores has offered to buy 26,000 units of Redwood's ornate rustic tables as long as the table can be customized with the outlet chain's logo. While the normal selling price is $6.20 per table, the chain has offered Just $3.10 per table. Redwood can accommodate the special order without affecting current sales. Unit cost information is as follows: Direct materials $1.75 Direct labor 0.30 Variable overhead 0.00 Fored overhead 2.00 Total cost per table 54.11 Fixed overhead is $445,000 per year and will not be affected by the special order. Normally, there is a comision of percent of price, this will not be paid on the special order since the outlet chain is dealing directly with the company. The special order will require additional loved costs of 515,300 for the design and setup of the machinery to engrave the outlet chain's logo on each table Required 1. Which alternative is more cost effective and by how much! The operating income would increase by 2. What if Hedwood Elegance Company was operating at capacity and accepting the special order would require recting an equivalent number of tables sold to existing customers? Which alternative would be better? Make or Buy Decision, Alternatives, Relevant Costs Each year, Giada Company produces 20,000 units of a component part used in tablet computers. An outside supplier has offered to supply the part for $1.21. The unit cost is Direct materials $0.74 Direct labor 0.26 Variable overhead 0.09 Fixed overhead 2.80 Total unit cost $3.89 Required: 1. What are the alternatives for Giada Company? 2. Assume that none of the lived cost savoidable. Last the relevant cost(s) of internal production List the relevant cost(s) of external purchase. 3. Which alternatives more cost effective and by how much? by 4. What if $21,600 of fixed overhead is rental of equipment used only in production of the component that can be avoided if the component is purchased? Which alternative is more cost effective and by how much? by
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