Please do not give solution in image format thanku Required informationPR 7-44 (Algo) Break-Even Analysis; Operating Leverage; New Manufacturing Environment (LO 7-1, 7-8,7-10)(The following information applies to the questions displayed below.)Celestial Products, Incorporated, has decided to introduce a new product, which can be manufactured by either acomputer-assisted manufacturing system or a labor-intensive production system. The manufacturing method will not affectthe quality of the product. The estimated manufacturing costs by the two methods are as follows:Computer-Assisted ManufacturingDirect materialDirect labor (OL denotes direct-labor hours)Variable overheadFixed overheadSysten0.5DL $24.000.50LH $15.00Labor-Intensive Production System$9.6015.6012.00$2,500,000$8.7012.00 0.BDLH $19.507.50 0.8DLH $15.00$4,260,000"These costs are directly traceable to the new product line. They would not be incurred if the new product were notproduced.The company's marketing research department has recommended an introductory unit sales price of $69.00. Sellingexpenses are estimated to be $870,000 annually plus $4,20 for each unit sold. (Ignore income taxes.) PR 7-44 (Algo) Part 1: Calculate the estimated break-even point in annual unit sales...Required:1. Calculate the estimated break-even point in annual unit sales of the new product if the company uses the (a) computer-assistedmanufacturing system; (b) labor-intensive production system.Note: Do not round intermediate calculations. Round your final answers to the nearest whole number.Computer-assisted manufacturing systemLabor-intensive production systemBreak-Even Pointunitsunits

Variable costs are those costs which changes along with change in activity level or sales volume.…

PR 7-44 (Algo) Part 1: Calculate the estimated break-even point in annual unit sales... Required: 1. Calculate the estimated break-even point in annual unit sales of the new product if the company uses the (a) computer-assisted manufacturing system; (b) labor-intensive production system. Note: Do not round intermediate calculations. Round your final answers to the nearest whole number. Computer-assisted manufacturing system Labor-intensive production system Break-Even Point units units

PR 7-44 (Algo) Part 1: Calculate the estimated break-even point in annual unit sales... Required: 1. Calculate the estimated break-even point in annual unit sales of the new product if the company uses the (a) computer-assisted manufacturing system; (b) labor-intensive production system. Note: Do not round intermediate calculations. Round your final answers to the nearest whole number. Computer-assisted manufacturing system Labor-intensive production system Break-Even Point units units

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter11: Strategic Cost Management

Section: Chapter Questions

Problem 33P: Southward Company has implemented a JIT flexible manufacturing system. John Richins, controller of...

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Required information [The following information applies to the questions displayed below.] Celestial Products, Inc., has decided to introduce a new product, which can be manufactured by either a computer- assisted manufacturing system or a labor-intensive production system. The manufacturing method will not affect the quality of the product. The estimated manufacturing costs by the two methods are as follows: Direct material Direct labor (DLH denotes direct-labor hours) Variable overhead Fixed overhead* Computer-Assisted Manufacturing System $ Volume 0.5DLH @ $25.50 0.5DLH @ $16.50 9.00 12.75 8.25 $4,410,000 units Labor-Intensive Production System $ 0.8DLH @ $21.00 0.8DLH @ $16.50 *These costs are directly traceable to the new product line. They would not be incurred if the new product were not produced. 9.90 16.80 13.20 $2,730,000 The company's marketing research department has recommended an introductory unit sales price of $75.00. Selling expenses are estimated to be $900,000…
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Question No. 1. A firm is evaluating the alternative of manufacturing a part that is currently being outsourced from a supplier. The relevant information is provided below: For in-house manufacturing, using this information, determine the break-even quantity for which the firm would be indifferent between manufacturing the part in-house or outsourcing it. Given: Annual fixed cost = P2,250,000.00 Variable cost per part = P7,000.00 For purchasing from supplier Purchase price per part = P8,000.00 Question No. 2. In relation to the previous question answer the following: If demand is forecast to be greater than 2,500 parts, should the firm make the part in-house or purchase it from a supplier? The marketing department forecasts that the upcoming year’s demand will be 2,500 units. A new supplier offers to make parts for P7,500.00 each. Should the company accept the offer? What is the maximum price per part the manufacturer should be willing to pay to the supplier if the forecast…
Accounting Evman Company has decided to introduce a new product, which can be manufactured by either a computer-assisted manufacturing system or a labour-intensive production system. The manufacturing method will not affect the quality of the product. The estimated manufacturing costs by the two methods are as follows: computer-assisted manufacturing system labour-intensive production system Direct Material $5.00 $5.60 Direct Labour .5DLH @ $12 $6.00 .8 DLH @ $9 $7.20 Variable Overhead .5 DLH @ $6 $3.00 .8 DLH @ $6 $4.80 Fixed Overhead * $2,440,000 $1,320,000 These costs are directly traceable to the new product line. They would not be incurred if the new product were not produced. The company’s marketing research department has recommended an introductory sales price of $30. Selling expenses are estimated to be $500,000 annually plus $2 for each unit…
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Cost Estimation; Machine Replacement; Ethics Hardison Inc. manufactures glass for officebuildings in Florida. As a result of age and wear, a critical machine in the production process hasbegun to produce quality defects. Hardison is considering replacing the old machine with a newmachine, either brand A or brand B. The manufacturer has provided Hardison with the following dataon the costs of operation of each machine brand at various levels of output:Output(square yards)Brand AEstimated Total CostsBrand BEstimated Total Costs2,000 $ 97,000 $ 120,0004,000 125,000 160,0008,000 180,000 200,00016,000 225,000 260,00032,000 280,000 300,00064,000 438,000 368,000Required1. Graph the data for the two brands of machines.2. Use the high-low method to determine the cost equation for each brand of machine and use the results tocalculate the costs of operating each machine if Hardison’s output is expected to be 25,000 square yards
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Paxton company can produce a component of its product solve this question accounting
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Required information Problem 7-44 Break-Even Analysis; Operating Leverage; New Manufacturing Environment (LO 7-1, 7-8, 7- 10) (The following information applies to the questions displayed below.] Celestial Products, Inc., has decided to introduce a new product, which can be manufactured by either a computer- assisted manufacturing system or a labor-intensive production system. The manufacturing method will not affect the quality of the product. The estimated manufacturing costs by the two methods are as follows: Computer-Assisted Manufacturing System 8.10 Labor-Intensive Production System $ Direct material Direct labor (DLH denotes direct-labor hours) Variable overhead Fixed overhead* 9.00 13.20 9.60 $2,280,000 2$ 0.5DLH @ $21.00 0.5DLH @ $12.00 10.50 0.8DLH @ $16.50 6.00 0.8DLH @ $12.00 $3,960,000 *These costs are directly traceable to the new product line. They would not be incurred if the new product were not produced. The company's marketing research department has recommended an…
Function: IF, SUM; Formula: Multiply; Cell Referencing BE5.5 - Using Excel to Evaluate a Make-Versus-Buy Decision PROBLEM Grunar Industries produces the component parts needed for its popular non-commercial-use drones. One of the key parts has become more costly to produce than first planned, however, so management is considering outsourcing that part. If the company decides not to manufacture this part, a portion of its fixed manufacturing overhead costs would continue. The costs to produce one such part internally and to purchase on part from the suppler are given here. Costs to produce internally Direct materials Direct labor Variable manufacturing overhead $ 2.80 1.70 0.50 Fixed manufacturing overhead 2.00 Cost to purchase from a supplier 6.25 Portion of fixed manufacturing cost to continue 80% Student Work Area Required: Provide input into cells shaded in yellow in this template. Input the required mathematical formulas or functions with cell references to the Problem area or work…