Sheridan Inc. has been manufacturing its own shades for its table lamps. The company is currently operating at 100% of capacity, andvariable manufacturing overhead is charged to production at the rate of 50% of direct labour costs. The direct materials and directlabour costs per unit to make the lampshades are $4.50 and $5.50, respectively. Normal production is 48,000 table lamps per year.A supplier offers to make the lampshades at a price of $13.20 per unit. If Sheridan Inc. accepts the supplier's offer, all variablemanufacturing costs will be eliminated, but the $40,000 of fixed manufacturing overhead currently being charged to the lampshadeswill have to be absorbed by other products.Prepare the incremental analysis for the decision to make or buy the lampshades. (Round answers to O decimal places, e.g. 5,275. Ifan amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000). Whilealternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.)Number of units: 48,000Sheridan Inc. shouldeTextbook and MediaShould Sheridan Inc. buy the lampshades?<, income would>eTextbook and Media$VMakethe lampshades.by $$BuyWould your answer be different in part (b) if the productive capacity released by not making the lampshades could be used toproduce income of $33,600?$Net IncomeIncrease (Decreas

Make or Buy Decision :— it is the important decision since it effect the productivity of the…

Prepare the incremental analysis for the decision to make or buy the lampshades. (Round answers to 0 decimal places, e.g. 5,275. If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) Number of units: 48,000 Sheridan Inc. should eTextbook and Media > Should Sheridan Inc. buy the lampshades? $ ✓, income would $ Make the lampshades. by $ k $ LA $ Buy $ $ Would your answer be different in part (b) if the productive capacity released by not making the lampshades could be used to produce income of $33,600? Net Income Increase (Decreas

Prepare the incremental analysis for the decision to make or buy the lampshades. (Round answers to 0 decimal places, e.g. 5,275. If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) Number of units: 48,000 Sheridan Inc. should eTextbook and Media > Should Sheridan Inc. buy the lampshades? $ ✓, income would $ Make the lampshades. by $ k $ LA $ Buy $ $ Would your answer be different in part (b) if the productive capacity released by not making the lampshades could be used to produce income of $33,600? Net Income Increase (Decreas

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 msut be correct or i will give down vote A quantity of 15 units give a profit of Sh. 3, 875 for a commodity. For a quantity of 35 units, the profit is Sh. 9375. Given that the variable cost is Sh. 125, calculate the fixed cost.
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If a company has three lots of products for sale, purchase 1 (earliest) for $17, purchase 2 (middle)for $15, purchase 3 (latest) for $12, which of the following statements is true?A. This is an inflationary cost pattern.B. This is a deflationary cost pattern.C. The next purchase will cost less than $12.D. None of these statements can be verified
Use the below table to answer the following questions. Selling Price = $43.00 Fixed Cost $47,200 47, 200 47,200 57, 200 57, 200 57, 200 67,200 67,200 67,200 Required Variable Cost 15 16 17 15 16 17 15 16 17 2,200 $14,400 12, 200 10,000 4,400 2,200 (5,600) (7,800) (10,000) 3,200 $42,400 39, 200 36,000 32,400 29, 200 26,000 22,400 19, 200 16,000 Sales Volume 4,200 Profitability $70,400 66, 200 62,000 60,400 56,200 52,000 50,400 46, 200 42,000 5,200 $98,400 93,200 88,000 88,400 83,200 78,000 78,400 73,200 68,000 6, 200 $126,400 120, 200 114,000 116,400 110, 200 104,000 106,400 100, 200 94,000 a. Determine the sales volume, fixed cost, and variable cost per unit at the break-even point. b. Determine the expected profit if Franklin projects the following data for Delatine: sales, 4,200 bottles; fixed cost, $47,200; and variable cost per unit, $17. c. Franklin is considering new circumstances that would change the conditions described in Requirement b. Specifically, the company has an…
The McGraw Company is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff has suggested that linear regression be employed to derive an equation in the form of y = a + bx for maintenance costs. Data regarding the maintenance hours and costs for last year and the results of the regression analysis are as follows: (CMA adapted) Hours of January February March April May June July August September October November December Sum Average A coefficient B coefficient Standard error of the a coefficient Standard error of the b coefficient Standard error of the estimate R² T-value a T-value b Activity 480 320 400 300 500 310 320 520 490 470 350 340 4,800 400 49.515 0.12126 Maintenance Costs 4,200 3,000 3,600 2,820 4,350 2,960 3,030 4,470 4,260 4,050 3,300 3,160 $ $ 43,200 3,600 684.65 7.2884 34.469 0.99724 13.827 60.105 What is the variable cost per hour using the high-low…
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hello, help please with B and C
Consider the following: (Click the icon to view the cases.) Requirement 1. Fill in the blanks for each of the independent cases. (a) Selling Price (b) (c) (d) (e) (f) Variable Cost Total Total Contribution Total Fixed Case per Unit per Unit Units Sold Margin Costs Net Income 12345 £ 25 128,000 £ 1,024,000 £ 953,000 13 4 100.000 823,000 22 13 243,000 13,000 29 23 65,000 25,000 12 80.000 240,000 192,000
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