Rhino, Inc. is using the following informtion in considering the mass-production of one of its special...

 

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Rhino, Inc. is using the following informtion in considering the mass-production of one of its special order sprinklers. Current Sales of special order sprinkler (in units) Current selling price per unit Current Variable Manufacturing Costs Current Fixed Manufacturing Costs Current Variable Selling and Adm Current Fixed Selling and Adm 7 3 Increase in variable costs per unit % Increase in sales of special-order sprinkler Proposed increase in selling price per unit 1. If Capstone, Inc. increases the sales and current selling price and begins mass-producing its special-order sprinklers, what would be the change ($ amount and %) in net income 9 and total contribution margin? 2. If the sales increase but the selling price per sprinkler did not increase when the company began mass-producing the special-order sprinkler, what would be the change ($ amount and %) of net income and total contribution margin? 55555 $ $ S Total 550,000 45.00 4,500,000 2,000,000 1,850,000 625.000 0.65 8.00% 4.25 S 8.18 Rhino, Inc. is using the following informtion in considering the mass-production of one of its special order sprinklers. Current Sales of special order sprinkler (in units) Current selling price per unit Current Variable Manufacturing Costs Current Fixed Manufacturing Costs Current Variable Selling and Adm Current Fixed Selling and Adm 7 3 Increase in variable costs per unit % Increase in sales of special-order sprinkler Proposed increase in selling price per unit 1. If Capstone, Inc. increases the sales and current selling price and begins mass-producing its special-order sprinklers, what would be the change ($ amount and %) in net income 9 and total contribution margin? 2. If the sales increase but the selling price per sprinkler did not increase when the company began mass-producing the special-order sprinkler, what would be the change ($ amount and %) of net income and total contribution margin? 55555 $ $ S Total 550,000 45.00 4,500,000 2,000,000 1,850,000 625.000 0.65 8.00% 4.25 S 8.18

Answer rating: 100% (QA)

1 Increase in sales 8 of 550000 units 44000 units New sales quantity 550000 44000 594000 units New s... View the full answer