Please do not give solution in image format thanku Exercise 6-11 (Algo) Adding a Product Line [LO 6-2]Cabin Creek Company is considering adding of a new line of kitchen cabinets. The company's accountant provided the followingestimated data for these cabinets:Annual nales.Selling price per unitVariable manufacturing costs per unitVariable selling costs per unit.Incremental fixed costs per yearsManufacturingSellingAllocated common costs per years tManufacturingSelling and administrative$800 units$ 3,630$1,630$480$488,400$ 68,000$93,000$125,000If the kitchen cabinets are added as a new product line, the company expects that the contribution margin earned from selling its otherproducts will decrease by $226,000 per year.Required:1. What is the annual financial advantage (disadvantage) of adding the new line of kitchen cabinets?2. What is the lowest selling price per unit that could be charged for the cabinets and still make it economically desirable for thecompany to add the new product line?Complete this question by entering your answers in the tabs below.

Required 1To solve the net effect of pursuing the new line, we prepared this table:ItemAmountSales$…

Answered: Exercise 6-11 (Algo) Adding a Product…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2CE

See similar textbooks

Similar questions

None
Please do not give solution in image format thanku
Please solve all questions
Please do not give solution in image format thanku
PROBLEM 7 Tito Company sells several products. Information of average revenue and costs are as follows: Selling price per unitPhp20.00 Variable costs per unit: Direct materialsPhp4.00 Direct manufacturing labor Php1.60 Manufacturing overhead Php0.40 Selling costsPhp2.00 Annual fixed costs Php96,000 26. Calculate the contribution margin per unit. 27. Calculate the number of units Tito's must sell each year to break even. 28. Determine the breakeven point in peso. 29. Calculate the number of units Tito's must sell to yield a profit of Php144,000. PROBLEM
show solution for letters A and b only
PLEASE HELP ME ANSWER THIS TASK THANK YOU IN ADVANCE
company X produce and sell 80000 calculators yearly. the capacity for company to produce 100000 calculators . the next data available the variable cost per calculator: manufacturing cost 22 selling and administrative 10 the fixed cost: manufacturing cost 256000 selling and administrative 112000 if the company accepted to special order to sell 10000 calculator at selling price 50 per calculator. whats the effect of the company income?
Question Two companies Malcom and Yoda manufacture the similar hand-sanitizing products. The following data for the two companies for the year 2019 are provided below: Malcom ($) Yoda ($) Sales revenue 60,000 72000 Total costs 42,000 48000 Variable Costs 40 % of sales revenue 50% Required: Calculate the Break Even Point (BEP) in dollars of product for each company. Calculate the percentage margin of safety for each company. If sales of the product in Yoda company are equal to 3,000 units, determine the BEP (in units), and present the Break-even chart. I Would like more info on point number 3 with the break even chart
Question 2 XYZ Company produces and sells only two products since year 2000. Data concerning those products for March 2020 appear below: Product A Product B March Sales $25,000 $27,000 March Variable costs $7,000 $8,600 March Fixed costs $32,860 Required: As a Senior Manager at XYZ Company, your General Manager asked you to determine the total sales of the company in $ for product A and for product B that should be achieved to cover both variable and fixed costs for the month of March by using the company's contribution margin. The level of competition in the market was acceptable and manageable by the Company. In March, 2020, a new potential competitor is doing a market research to decide on entering the market with a product similar to Product A. The General Manager asked for your advice if the company should shift the sales mix toward Product B with no change in total sales (as the sales of product B is more than product…
Please do not give solution in image format thanku
QUESTION NO 3: The Knot manufactures men’s neckwear at its Spartanburg plant. The Knot is considering implementing a JIT production system. The following are the estimated costs and benefits of JIT production: a. Annual additional tooling costs $250,000 annually. b. Average inventory would decline by 80% from the current level of $1,000,000. c. Insurance, space, materials-handling, and setup costs, which currently total $400,000 annually, would decline by 20%. d. The emphasis on quality inherent in JIT production would reduce rework costs by 25%. The Knot currently incurs $160,000 in annual rework costs. e. Improved product quality under JIT production would enable The Knot to raise the price of its product by $2 per unit. The Knot sells 100,000 units each year. The Knot’s required rate of return on inventory investment is 15% per year. 1. Calculate the net benefit or cost to The Knot if it adopts JIT production at the Spartanburg plant. 2. What nonfinancial and qualitative factors…

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning