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Sell or Process Further Jensen Manufacturing Company makes a partially completed assembly unit that it sells for $40 per unit. Normally, 46,000 units are sold each year Variable unit cost data on the assembly are as follows Dract material $10 Drech labor Vanable manufacturing overhead The company is now using only 70% of es normal capacity, it could fully use its normal capacity by processing the assembly further and selling it for 547 per unit. If the company does this materia and labor co will each increase by $2 per unit and variable overhead will go up by $1 per unt. Fixed costs will increase from the curent level of $160,000 to $240,000. Prepare an analysis showing whether jensen should process the assemblies father. Use a negative sign with answer to only indicate a loss from precessing assemblies further; otherwise do not use negative signs with your answers Set of Process Further Differential Analysis Different revenu Differemal com Drect materal Direct labor Variable overhead Fixed costs Add come joi) from proosing further &

Sell or Process Further Jensen Manufacturing Company makes a partially completed assembly unit that it sells for $40 per unit. Normally, 46,000 units are sold each year Variable unit cost data on the assembly are as follows Dract material $10 Drech labor Vanable manufacturing overhead The company is now using only 70% of es normal capacity, it could fully use its normal capacity by processing the assembly further and selling it for 547 per unit. If the company does this materia and labor co will each increase by $2 per unit and variable overhead will go up by $1 per unt. Fixed costs will increase from the curent level of $160,000 to $240,000. Prepare an analysis showing whether jensen should process the assemblies father. Use a negative sign with answer to only indicate a loss from precessing assemblies further; otherwise do not use negative signs with your answers Set of Process Further Differential Analysis Different revenu Differemal com Drect materal Direct labor Variable overhead Fixed costs Add come joi) from proosing further &

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Sell or Process Further Jenson Manufacturing Company makes a partially completed assembly unit that it sells for $40 per unit. Normally, 40,000 units are sold each year. Variable unit cost data on the assembly are as follows Direct material $10 Drect labor Vantable manufacturing overhead The company is now using only 70% of its normal capacity; it could fully use its normal capacity by processing the assembly further and selling it for 14% per unit. If the company does this, material and labor costs will each increase by $2 per unit and variable overhead will go up by $1 per unt. Fixed costs will increase from the current level of $160,000 to $240,000 Prepare an analysis showing whether jensen should process the assembles fuether. Use a negative sign with answer to only indicate a loss from precessing assemblies further; otherwise do not use negative signs with your answers. Sell of Process Further Differential Analysis Different revenue Differential costs Dramatend Directa Variable overhead Fixed costs Anal income toss) from prosing further
Transcribed Image Text:Sell or Process Further Jenson Manufacturing Company makes a partially completed assembly unit that it sells for $40 per unit. Normally, 40,000 units are sold each year. Variable unit cost data on the assembly are as follows Direct material $10 Drect labor Vantable manufacturing overhead The company is now using only 70% of its normal capacity; it could fully use its normal capacity by processing the assembly further and selling it for 14% per unit. If the company does this, material and labor costs will each increase by $2 per unit and variable overhead will go up by $1 per unt. Fixed costs will increase from the current level of $160,000 to $240,000 Prepare an analysis showing whether jensen should process the assembles fuether. Use a negative sign with answer to only indicate a loss from precessing assemblies further; otherwise do not use negative signs with your answers. Sell of Process Further Differential Analysis Different revenue Differential costs Dramatend Directa Variable overhead Fixed costs Anal income toss) from prosing further
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