Requirement 1. (a) What is the average cost of manufacturing a bicycle frame in 2023? How does it compare to Ryan's offer? The average cost of $ per frame is than Ryan's offer. (b) Can Gonzalez use the answer in requirement 1a to determine the cost of manufacturing 33,000 bicycle frames? Explain. Gonzalez take the average manufacturing cost in 2023 to determine the total cost of manufacturing 33,000 bicycle frames. The reason is that Requirement 2. Gonzalez's cost analyst uses annual data from past years to estimate the following regression equation with total manufacturing costs of the bicycle frame as the dependent variable and bicycle frames produced as the independent variable: y = $435,000+ $10X During the years used to estimate the regression equation, the production of bicycle frames varied from 29,000 to 33,000. Using this equation, estimate how much it would cost Gonzalez to manufacture 33,000 bicycle frames. How much more or less costly is it to manufacture the frames rather than to acquire them from Ryan? Estimated cost to make the frames Cost to purchase the frames It will cost $ $ $ to purchase the frames rather than manufacture them in-house.

Requirement 1. (a) What is the average cost of manufacturing a bicycle frame in 2023? How does it compare to Ryan's offer? The average cost of $ per frame is than Ryan's offer. (b) Can Gonzalez use the answer in requirement 1a to determine the cost of manufacturing 33,000 bicycle frames? Explain. Gonzalez take the average manufacturing cost in 2023 to determine the total cost of manufacturing 33,000 bicycle frames. The reason is that Requirement 2. Gonzalez's cost analyst uses annual data from past years to estimate the following regression equation with total manufacturing costs of the bicycle frame as the dependent variable and bicycle frames produced as the independent variable: y = $435,000+ $10X During the years used to estimate the regression equation, the production of bicycle frames varied from 29,000 to 33,000. Using this equation, estimate how much it would cost Gonzalez to manufacture 33,000 bicycle frames. How much more or less costly is it to manufacture the frames rather than to acquire them from Ryan? Estimated cost to make the frames Cost to purchase the frames It will cost $ $ $ to purchase the frames rather than manufacture them in-house.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Knarly Knife Kompany is thinking about launching a new kitchen knife set. Relevant fixed costs for this launch would be $1.3 million. The knife sets would sell for $55 each, earning a contribution margin of $22.93 per set. Suppose Knarly introduces the new knife set and sells exactly 45,600 knife sets. What would be Knarly's profit or loss on the launch, in dollars? (If it is a loss, be sure to include a negative sign. Rounding: whole dollar.) Answer is: -254,392, but HOW is that the answer? Please explain.
F1. Use the Panera annual report to answer this question. You are going to start a fast casual restaurant similar to Panera, You need to figure out what your cost of goods sold will be. You decide to use the 2012 Panera numbers for your assumed cost of goods sold. In particular, you use the "Cost of Food and Paper Products" line item as the basis of your cost of goods sold. You know to compare this to the revenue item "Bakery Cafe Sales, Net". Based on this, what would be a reasonable assumption for your cost of goods sold as a percentage of sales?
José Ruiz starts a company that makes handcrafted birdhouses. Competitors sell a similar birdhouse for $245 each. José believes he can produce a birdhouse for a total cost of $200 per unit, and he plans a 25% markup on total cost. (a) Compute José's planned selling price. (b) Is José's price lower than competitors' price? Complete this question by entering your answers in the tabs below. Required A Required B Compute José's planned selling price. Selling price E per unit Required A Required B >
Assume that a person's income directly affects their purchasing power for a particular product. We have a customer named John who has a per capita income of $35,102 that is looking to buy a new car. If the current US population is 335,707,897, the current per capita income is $40,363, and total new car sales in 2022 were $1,131,009,556,950; what would John's per capita spend be for a new car, assuming his income directly affects the amount he can spend?
a) Compute the selling price per unit in 2019, using the equation method. b) Given the sales of 3,000 units and the selling price calculated in (a), prepare a contribution marginincome statement for the year ended December 31, 2019, detailing the components of total fixed costsand clearly showing contribution and net income. c) Calculate Benoit’s break-even point in units and in sales dollars.
7. If the company have been selling its rubber glove at an avverage price of RM 0.40 per pair, what could be the lowest price that company could accept for a special order of say 500,000,000 gloves if the company could create the cpacity conveniently without increasing its operating costs ?
If the food cost is $250,000 and the total labor cost is $300,000 and sales are $1,000,000, what is the prime cost in $?
Ef 61.
29) Foamsoft sells customized boat shoes. Currently, it sells 16,850 pairs of shoes annually at an average price of $75 a pair. It is considering adding a lower-priced line of shoes which sell for $59 a pair. Foamsoft estimates it can sell 4,500 pairs of the lower-priced shoes but will sell 1,100 fewer pairs of the higher-priced shoes by doing so. What is the estimated value of the erosion cost that should be charged to the lower-priced shoe project?
Please help me with show all Calculation thanku