Question: Rigney Manufacturing is a small components maker located in the upper midwest. The company specializes in aircraft turbine blades and focused its production around
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.) Sales revenue Costs Material Labor Rent Depreciation Utilities Other Total costs Operating profit RIGNEY MANUFACTURING Projected Income Statement For One Quarter Status Quo: % Increase Single Product (Decrease) $ 65,000 32,000 10,000 4,000 $ 128,000 % 22 % % % 15 % 30 % % Alternative: Two Products S 11,050 11,500 11,050 12,700 Difference $ 33,160 2,550 1,500 1,000
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