Problem 1-51 (Algo) Cost Data for Managerial Purposes-Finding Unknowns (LO 1-3)

Rigney Manufacturing is a small components maker located in the upper midwest. The company specializes in aircraft turbine blades and focused 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 of only 10 percent.

Before the board member could show her analysis, she had to resign, because of a conflict of interest. She left behind the incomplete spreadsheet below apologizing that she had neglected to save the full version. She suggested that you could complete the analysis based on what information was included.

Required:

Fill in the blank cells. (Enter all amounts as positive values.)

RIGNEY MANUFACTURING
Projected Income Statement
For One Quarter
	Status Quo:	% Increase		Alternative:
	Single Product	(Decrease)		Two Products	Difference
Sales revenue			%		$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