%24 %24 %%24 %24 %24 %24 X My Home ngageNowv2| Online teachir x 2.cengagenow.com/ilm/takeAssignment/takeAssignmentMar.ao?invoker=&takeAssignmentSessionLocator=&inprogress=false O ) (29) Summer Walker - Thro X eBook Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.15. The machine will increase fixed costs by $20,300 per year. The information they will use to consider these changes is shown here. A. What will the impact be on the break-even point if Flanders purchases the new machinery? Round per unit cost answers to two decimal places. Current New Machine Units Sold 000' $2.15 Sales Price Per Unit Variable Cost Per Unit $1.75 Contribution Margin Per Unit $0.40 Fixed Costs 000'09$ Break-Even (in units) 000'0, Break-Even (in dollars) $322,500 <> B. What will the impact be on net operating income if Flanders purchases the new machinery? $4 Current New Machine Sales $475,150 Variable Costs 386,750 Contribution Margin $88,400 Fixed Costs 000'09 Net Income (Loss) $28,400 C. What would your recommendation be to Flanders regarding this purchase?

%24 %24 %%24 %24 %24 %24 X My Home ngageNowv2| Online teachir x 2.cengagenow.com/ilm/takeAssignment/takeAssignmentMar.ao?invoker=&takeAssignmentSessionLocator=&inprogress=false O ) (29) Summer Walker - Thro X eBook Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.15. The machine will increase fixed costs by $20,300 per year. The information they will use to consider these changes is shown here. A. What will the impact be on the break-even point if Flanders purchases the new machinery? Round per unit cost answers to two decimal places. Current New Machine Units Sold 000' $2.15 Sales Price Per Unit Variable Cost Per Unit $1.75 Contribution Margin Per Unit $0.40 Fixed Costs 000'09$ Break-Even (in units) 000'0, Break-Even (in dollars) $322,500 <> B. What will the impact be on net operating income if Flanders purchases the new machinery? $4 Current New Machine Sales $475,150 Variable Costs 386,750 Contribution Margin $88,400 Fixed Costs 000'09 Net Income (Loss) $28,400 C. What would your recommendation be to Flanders regarding this purchase?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question 8 XAE-2 company is reviewing the behavior of its various activities. XAD is considering various costs. The company manufactures two models of computers. The laptop computer (model MX10) is a top of the line, deluxe model. The tower computer (model DX 20) is the regular model. The following activity data is provided: Not yet answered Marked out of - 1.00 P Flag question Activity Usage Measures Model MX10 Model DX20 Total Units produced annually 15,000 40,000 55,000 Prime costs $40,000 $100,000 $140,000 Machine hours 40,000 60,000 100,000 Production runs 14 20 Direct labor hours 20,000 30,000 50,000 The company primarily has thr.ee major activities as follows in the production process: Activity Activity Cost Setups $50,000 Inspections $30,000 Power $15,000 Calculate the unit cost of model DX 20. O a. $4.05 35°C Rair O Type here to search
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ps://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launch Url=https%253A%252F%252Flms.mheducati... A ☆ Homework Problems i Fixed costs: Occupancy costs Salaries Other Variable costs (including cost of paint) Rainbow Paints operates a chain of retail paint stores. Although the paint is sold under the Rainbow label, it is purchased from an independent paint manufacturer. Guy Walker, president of Rainbow Paints, is studying the advisability of opening another store. His estimates of monthly costs for the proposed location are as follows. a. Contribution margin ratio Break-even sales volume in dollars Break-even sales volume in gallons c. Operating income for 2,200 Gallons Operating income for 2,600 Gallons % Saved $ 3,160 3,640 1,200 $ Ch
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pter 6 Assignment - ACCT-23 x * CengageNOWv2 | Online teachir C Lampierre Makes Brass And Gold x akeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false еВook Grainger Company produces only one product and sells that product for $110 per unit. Cost information for the product is as follows: Direct Material $15 per Unit Direct Labor $25 per Unit Variable Overhead $6 per Unit Fixed Overhead $33,500 Selling expenses are $3 per unit and are all variable. Administrative expenses of $15,000 are all fixed. Grainger produced 5,000 units; sold 4,000; and had no beginning inventory. A. Compute net income under i. Absorption Costing $ ii, Variable Costing B. Which costing method provide higher net income? By how much? The method provided more net income by $