Hebrew Co. have segment A and segment B. During the past years, 50,000 and 20,000 were producedfrom segment A and B respectively. Fixed cost for Hebrew totaled 225,000 of which 90,000 can beavoided if segment B is dropped and 45,000 can be avoided if segment A is dropped. The selling pricefor segment A and B are 25 and 50, respectively. The variable cost of segment A and B are 15 and 45,respectively.REQUIREMENTS:1. Compute the segment margin of segment A.2. Compute for the increase/(decrease) on Hebrew Co. if segment B is dropped.

Here in this question, we are required to calculate the segment margin and increase/(Decrease) on…

Answered: Hebrew Co. have segment A and segment…

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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Answer the following questions. Required 1. Deibler Computers makes 5,600 units of a circuit board, CB76, at a cost of $210 each. Variable cost per unit is $150, and fixed cost per unit is $60. HT Electronics offers to supply 5,600 units of CB76 for $185. If Deibler buys from HT, it will be able to save $25 per unit of fixed costs but continue to incur the remaining $35 per unit. Should Deibler accept HT's offer? Explain. 2. QT Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information: (Click the icon to view the information.) QT Manufacturing uses straight-line depreciation. Ignore the time value of money and income taxes. Should QT replace the old machine? Explain. A Requirement 1. Deibler Computers makes 5,600 units of a circuit board, CB76, at a cost of $210 each. Variable cost per unit is $150, and fixed cost per unit is $60. HT Electronics offers to supply 5,600 units of CB76 for $185. If Deibler buys from HT, it will be able to…
Noblesya Co. produces 1,000 parts per year, which are used in the assembly of one ofits products. The unit product cost of these parts are: Variable manufacturing cost,P12.00; fixed manufacturing cost, P9.00. The part can be purchased from an outsidesupplier at P20.00. If the part is purchased from the outside supplier, two thirds of thefixed manufacturing costs can be eliminated. What would be the annual impact on thecompany’s net operating income as a result of buying the part from the outside supplier? provide solution
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Company produces three products with the following information: Selling price per unit Variable cost per unit Machine-hours per unit (MH/unit) Small $17 $8 2 Q) What is the maximum monthly rent the " optimal use of their own machine)? A) $ Product Medium $19 $10 3 Large $26 $12 4 The company has a limit of 14,300 machine-hours available per month and a monthly fixed cost of $11,000. The demand for each of the products is 2,500 units per month. The company's goal is to maximize its profitability. Suppose the Company can rent a machine that will provide an additional 1,360 machine-hours per month. company should be willing to pay for this machine (assuming they've made
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Baby Co. have segment C and segment U. During the past years, 50,000 and 20,000 were produced from segment C and U respectively. Fixed cost for Baby totaled P225,000 of which 90,000 can be avoided if segment U is dropped and P45,000 can be avoided if segment C is dropped. The selling price for segment C and U are P25 and P50, respectively. The variable cost of segment C and U are P15 and P45, respectively. 1. Compute for the increase/(decrease) on Baby Co. if Segment U is dropped. 2. Compute the segment margin of segment C.
urrently, the unit selling price of a product is $410, the unit variable cost is $340, and the total fixed costs are $1,176,000. A proposal is being evaluated to increase the unit selling price to $460. a. Compute the current break-even sales (units).fill in the blank 1 of 1 units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.fill in the blank 1 of 1 units
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Segment X sells its product at SP of 300 per unit. Variable Cost to produce per unit is 120 per unit. Fixed cost is 100,000. X operates at full capacity. What is the minimum price that should be charged to another segment for each unit of product to be transferred? • 120 plus allocated cost of FC • 120 plus opportunity cost and other variable cost • 300 • 120
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