Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 4 Rambo Company has three products, A, B, and C. The following information is available: Product A $68,000 39,000 29,000 Product B $95,000 49,000

image text in transcribedimage text in transcribed

QUESTION 4 Rambo Company has three products, A, B, and C. The following information is available: Product A $68,000 39,000 29,000 Product B $95,000 49,000 46,000 Productc $22,000 15,000 7000 Sales Variable costs Contribution margin Fixed costs: Avoidable Unavoidable Operating income 10,000 12000 $7000 17,000 12000 $17,000 6000 9400 $ (8400) Rambo Company is thinking of dropping Product C because it is reporting a loss. Assuming Rambo drops Product C and does NOT replace it, operating income will o increase by $8400 increase by $6000 decrease by $1000 decrease by $15,400 QUESTION 5 Genent's Preserves currently makes jams and jellies and a variety of decorative jars used for packaging. An outside supplier has offered to supply all of the needed decorative jars. For this make-or-buy decision, a cost analysis revealed the following avoidable unit costs for the decorative jars: Direct materials $0.57 Direct labor 0.13 Unit-related support costs 0.22 Batch-related support costs 0.31 Product-sustaining support costs 0.44 Facility-sustaining support costs 0.57 Total cost per jar $224 The maximum price that Genent's Preserves should be willing to pay for the decorative jars is $0.44 per jar $0.92 per jar $0.70 per jar $2.24 per jar

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Question 4 Rambo Company Dropping Product C Step 1 Understand the Data Given Information Product A Sales 68000 Variable Costs 39000 Contribution Margi... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting, 1, (6 Months)

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

14th Edition

1337270814, 9781337270816

More Books

Students also viewed these Accounting questions

Question

Describe some variables used to measure the value added of HRM

Answered: 1 week ago

Question

Critically evaluate research on the HRMperformance relationship

Answered: 1 week ago