Concord Corporation produces several products that can be sold atthe split-off point or processed further and then sold. The followingresults are from a recent period:AdditionalSales Value afterSales ValueProductat Split-off Variable Costs Further Processing$186600$25000$161600Green lumber28500176400126000Rough lumber13440020300106000SawdustThe additional profit that would result from processing roughlumber further isO $97500.O $21900.O $50400.O $147900.11

Profit: Profit is defined as the excess revenue earned over the total cost of production.

Answered: Concord Corporation produces several…

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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1. What would be the gross margin for FPD if it accepted the transfer price that will be charged by CD?
Bates Company plans to add a new item to its line of consumer product offerings. Two possible products are under consideration. Each unit of Product A costs $18 to produce and has a contribution margin of $9, while each unit of Product B costs $30 and has a contribution margin of $10. What is the differential revenue for this decision? Multiple Choice O O $21 $1 $13 $12
An automated turning machine is the current constraint at Jordison Corporation. Three products use this constrained resource. Data concerning those products appear below: LN JQ RQ Selling price per unit $ 167.36 $ 303.39 $ 411.96 Variable cost per unit $ 136.00 $ 212.11 5 303.18 Minutes on the constraint 1.60 5.60 7.40 Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized. (Round your intermediate calculations to 2 decimal places)
Vaughn Music produces 60800 blank CDs on which to record music. The CDs have the following costs Direct Materials $10600 Direct Labour 14800 Variable Overhead 2800 Fixed Overhead 6800 None of Vaughni's foxed overhead costs can be reduced, but another product could be made that would increase the operating income by $4400 if the CDs were acquired externally If cost minimization is the major consideration and the company would prefer to buy the CDs, what is the maximum external price that Vaughn would be willing to accept to acquire the 60800 units externally
What is the break-even point in sales units? (see attached)
Thornton Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $44. 12 Variable costs Manufacturing Selling Fixed costs Manufacturing Selling and administrative 17 per unit 6 per unit $152,000 per year $102,100 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit of $178,500. c. Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 21,400 units, how much could it pay in salaries for salespeople and still have a profit of $178,500? (Hint Use the equation method.) a. Break-even point in units Break-even point in dollars b Required sales in units Required sales in dollars C Fixed cost of salaries
If Alfaro Company decides to concentrate its sales efforts on Product B with its higher contribution margin as follows : Product A - P6; Product B - P9; Product C - Pó. Total fixed cost is P1,000,000. The sales mix is 4:7:4. In the new break- even units, what is the number of units of product B that must be produced and sold? * O 57,915 O 68,627 O 63,063 63,025
Laser Cast Inc. manufactures color laser printers. Model J20 presently sells for $325 and has a product cost of $260, as follows: Line Item Description Amount Direct materials $190 Direct labor 50 Factory overhead 20 Total $260 It is estimated that the competitive selling price for color laser printers of this type will drop to $310 next year. Laser Cast has established a target cost to maintain its historical markup percentage on product cost. Engineers have provided the following cost-reduction ideas: 1. Purchase a plastic printer cover with snap-on assembly, rather than with screws. This will reduce the amount of direct labor by 9 minutes per unit.2. Add an inspection step that will add six minutes per unit of direct labor but reduce the materials cost by $7 per unit.3. Decrease the cycle time of the injection molding machine from four minutes to three minutes per part. Thirty percent of the direct labor and 45% of the factory overhead are related to running injection…
Listmann Corporation processes four different products that can either be sold as is or processed further. Listed below are sales and additional cost data: Sales Value with no further Additional Processing Sales Value after further Product Processing Costs processing Premier $ 1,350 $ 900 $ 2,700 Deluxe 450 225 630 Super 900 450 Basic 90 45 1,800 180 Which product(s) should not be processed further?
1. What is the differential cost to manufacture part Q? 2. What is the cost savings from manufacturing Part Q?
The background information is provided in the image attached. Solve the following: g) Briefly explain the impact of each of the following scenarios on the contribution margin per unit and thebreak-even point:(i) Sales volume increases(ii) Total fixed cost decreases(iii) Selling price per unit increases(iv) Variable cost per unit increases

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