Question: USAY. Write your answer in the space provided or on the scratch 1) Bucky Inc. manufactures machine parts for aircraft engines. The CEO is considering
USAY. Write your answer in the space provided or on the scratch 1) Bucky Inc. manufactures machine parts for aircraft engines. The CEO is considering an offer from a subcontractor who would provide 2,800 units of product QR128 for a total price of S190,000. If Quinta does not purchase these parts from the subcontractor it must produce thenm in-house with the following costs: $22 18 14 16 Direct Materials Direct Labor Variable Overhead Allocated Fixed Factory Overhead Allocated Fixed Selling Costs Total Cost S75 If Bucky produces part Q cost of $13,000. Calculate the total relevant costs of producing 2,800 units of product QR128. R128 internally, there would be an incremental (and ongoing) overhead 2) The most recent monthly income statement for Dolphin Stores is given below Total 200.000 840.000 3 800,000 360,000 440,000 400,000 140,000 260,000 300,000180 000 120000 Store StoreI 2,000,000 $1,200,000 $800,000 360 000 Variable expenses.... Contribution margin. Traceable fixed expenses... Segment margin Common fixed expenses. Net operating income 0,000 180 000 100.000 (40.000) $140.000 Dolphin is considering closing Store L. If Store I is closed, one-fourth of its traceable fixed expenses would continue un in sales in Store lI. Dolphin allocates common fixed expenses on the basis of sales dollars. changed. Also, the closing of Store I would result in a 20% decrease Required: Compute the overall increase or decrease in Dolphin's net operating income if Store
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