You have been asked to assist the management of Ironwood Corporation in arriving at certain decisions. Assistance with A, B, and C please Required:To assist the management of Ironwood Corporation, complete the following schedule computing Ironwood's estimated operating profitfrom each of the following options:a. Expansion of the Minnesota factory.b. Negotiation of the long-term contract on a royalty basis.c. Shutdown of the North Dakota operations with no expansion at other locations.Complete this question by entering your answers in the tabs below.Required ARequired BRequired CExpansion of the Minnesota factory.IRONWOOD CORPORATIONComputation of Estimated Profit from Operations after Expansion of Minnesota FactoryMinnesota factory:CostsTotalLess: Home office costs previously allocated to North Dakota factory< Required ARequired B > You have been asked to assist the management of Ironwood Corporation in arriving at certain decisions. Ironwood has its home officein Michigan and leases factory buildings in Wisconsin, Minnesota, and North Dakota, all of which produce the same product.Ironwood's management provided you with a projection of operations for next year, as follows.Wisconsin MinnesotaNorth Dakota$153,000TotalSales revenue$869, 000$443,000$273,000Fixed costs220,00072,000301,00059,00021,00089,00033,000$202,000Factory112,00049,0007,00074,00018,000$148,000Administration44,000138,000Variable costsAllocated home office costs96,000$689, 00045,000Total$339,000Operating profit$180, 000$104, 000$ 71,000$ 5,000The sales price per unit is $5.Due to the marginal results of operations of the factory in North Dakota, Ironwood has decided to cease its operations and sell thatfactory's machinery and equipment by the end of this year. Ironwood expects that the proceeds from the sale of these assets wouldequal all termination costs. Ironwood, however, would like to continue serving most of its customers in that area if it is economicallyfeasible and is considering one of the following three alternatives:· Expand the operations of the Minnesota factory by using space presently idle. This move would result in the following changes in thatfactory's operations.Increase over Minnesota factory's current operationsales reven51%Fixed costsFactoryAdministration2110Under this proposal, variable costs would be $2 per unit sold.· Enter into a long-term contract with a competitor that will serve that area's customers. This competitor would pay Ironwood a royaltyof $1 per unit based on an estimate of 31,000 units being sold.• Close the North Dakota factory and not expand the operations of the Minnesota factory.Total home office costs of $96,000 will remain the same under each situation.Required:To assist the management of Ironwood Corporation, complete the following schedule computing Ironwood's estimated operating profitfrom each of the following options:a. Expansion of the Minnesota factory.b. Negotiation of the long-term contract on a royalty basis.c. Shutdown of the North Dakota operations with no expansion at other locations.

. Expansion of the Minnesota factory. . Negotiation of the long-term contract on a royalty basis. . Shutdown of the North Dakota operations with no expansion at other locations. Complete this question by entering your answers in the tabs below. Required A Required B Required C Expansion of the Minnesota factory.

. Expansion of the Minnesota factory. . Negotiation of the long-term contract on a royalty basis. . Shutdown of the North Dakota operations with no expansion at other locations. Complete this question by entering your answers in the tabs below. Required A Required B Required C Expansion of the Minnesota factory.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 11E: Cashion Company produces chemical mixtures for veterinary pharmaceutical companies. Its factory has...

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Cashion Company produces chemical mixtures for veterinary pharmaceutical companies. Its factory has four mixing lines that mix various powdered chemicals together according to specified formulas. Each line can produce up to 5,000 barrels per year. Each line has one supervisor who is paid 34,000 per year. Depreciation on equipment averages 16,000 per year. Direct materials and power cost about 4.50 per unit. Required: 1. Prepare a graph for each of these three costs: equipment depreciation, supervisors wages, and direct materials and power. Use the vertical axis for cost and the horizontal axis for units (barrels). Assume that sales range from 0 to 20,000 units. 2. Assume that the normal operating range for the company is 16,000 to 19,000 units per year. How would you classify each of the three types of cost?
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Tabouk’s Manufacturing Company has two divisions: Garden Division and Farm Division. The following report is for the most recent operating period of 2019: Total Company Garden Division Farm Division Sales revenue $390,000 $270,000 $120,000 Variable expenses 95,400 59,400 36,000 Contribution margin 294,600 210,600 84,000 Traceable fixed expenses 223,000 165,000 58,000 Division profit margin 71,600 $45,600 $26,000 Common fixed expense 46,800 Net operating income $24,800 As a manager at the company your responsibilities are planning and directing the company, you are required to: 1-What would be the company's overall net operating income if the company operated at its two division's break-even points?
Exercises The salary for a plant supervisor for a manufacturing facility is $120,000 per year. The plant's capacity is 300,000 units per year. Required 1. Prepare a table that shows how the cost of supervision behaves in total and on a per-unit basis as production increases from 0 to 250,000 units per year, using 50,000-unit increments. 2. How would you classify the behavior of the cost of supervision?
Subject: acounting
X Co. Ltd. produces three types of products A, B and C and keeps accounts for Process I, Process II and Process III. Following statements show the relative importance of each type of product in each process : Process I Points Process II Points Process III Points Product A Product B 2 4 2 4 2 1 Product C 8 3 2 Costs for each process for March, 2019 are as follows : Process I Process II $ 9,000 3,000 5,100 Process III $ 9,000 1,800 2,400 Total Materials Labour Overheads 12,000 4,200 3,000 $ 30,000 9,000 10,500 19,200 17,100 13,200 49,500 Production during the period : Product A 600 units ; Product B 300 units ; Product C 900 units. You are required to- (a) prepare a statement showing weighted average production for each process and (b) compute the cost for each type of product.
View Policies Current Attempt in Progress Foxx Company incurs $440000 overhead costs each year in its three main departments, setup ($20000), machining ($295000), and packing ($125000). The setup department performs 40 setups per year, the machining department works 5000 hours per year, and the packing department packs 500 orders per year. Information about Foxx's two products is as follows: Product A1 Product B1 Number of setups 20 20 Machining hours Orders packed 1000 4000 350 150 Number of products manufactured 600 400 If machining hours are used as a base under traditional casting, how much overhead is assigned to Product A1 each year? O $88000 o $220000 e $132000 $147500
please answer no. 2 cost of production report for A,D,E
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