The operating income in both the year 2016 and 2017. Given information: For the year 2013, The number of machines sold is 200. The average selling price is $40,000 per machine. The number of machines purchased is 300,000. The direct materials cost per kg is $8. The conversion cost is $2,000,000. The selling and customer service cost is $1,000,000. For the year 2014, The number of machines sold is 210. The average selling price is $42,000 per machine. The number of machines purchased is 310,000. The direct materials cost per kg is $8.50. The conversion cost is $2,025,000. The selling and customer service cost is $940,500.

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Answer 1

Question

Chapter 12, Problem 12.23E

1.

To determine

The operating income in both the year 2016 and 2017.

Given information:

For the year 2013,

The number of machines sold is 200.

The average selling price is $40,000 per machine.

The number of machines purchased is 300,000.

The direct materials cost per kg is $8.

The conversion cost is $2,000,000.

The selling and customer service cost is $1,000,000.

For the year 2014,

The number of machines sold is 210.

The average selling price is $42,000 per machine.

The number of machines purchased is 310,000.

The direct materials cost per kg is $8.50.

The conversion cost is $2,025,000.

The selling and customer service cost is $940,500.

2.

To determine

The growth, price recovery and productivity components that explain the change in operating income.

Given information:

The actual units of machines sold in 2014 are 210.

The actual units of machines sold in 2013 are 200.

The selling price in 2013 is $40,000.

The actual kgs of materials used to produce output in 2013 are 300,000.

The actual units of machines required to sell are 225,000.

The material cost per unit in 2013 is $8.

The conversion capacity is 250.

The conversion costs are $2,000,000.

3.

To determine

To explain: The answers in requirement 2 and the indication of each component.

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Answer 2

Question

Chapter 12, Problem 12.23E

1.

To determine

The operating income in both the year 2016 and 2017.

Given information:

For the year 2013,

The number of machines sold is 200.

The average selling price is $40,000 per machine.

The number of machines purchased is 300,000.

The direct materials cost per kg is $8.

The conversion cost is $2,000,000.

The selling and customer service cost is $1,000,000.

For the year 2014,

The number of machines sold is 210.

The average selling price is $42,000 per machine.

The number of machines purchased is 310,000.

The direct materials cost per kg is $8.50.

The conversion cost is $2,025,000.

The selling and customer service cost is $940,500.

2.

To determine

The growth, price recovery and productivity components that explain the change in operating income.

Given information:

The actual units of machines sold in 2014 are 210.

The actual units of machines sold in 2013 are 200.

The selling price in 2013 is $40,000.

The actual kgs of materials used to produce output in 2013 are 300,000.

The actual units of machines required to sell are 225,000.

The material cost per unit in 2013 is $8.

The conversion capacity is 250.

The conversion costs are $2,000,000.

3.

To determine

To explain: The answers in requirement 2 and the indication of each component.

Expert Solution & Answer

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Answer 3

Question

Chapter 12, Problem 12.23E

1.

To determine

The operating income in both the year 2016 and 2017.

Given information:

For the year 2013,

The number of machines sold is 200.

The average selling price is $40,000 per machine.

The number of machines purchased is 300,000.

The direct materials cost per kg is $8.

The conversion cost is $2,000,000.

The selling and customer service cost is $1,000,000.

For the year 2014,

The number of machines sold is 210.

The average selling price is $42,000 per machine.

The number of machines purchased is 310,000.

The direct materials cost per kg is $8.50.

The conversion cost is $2,025,000.

The selling and customer service cost is $940,500.

2.

To determine

The growth, price recovery and productivity components that explain the change in operating income.

Given information:

The actual units of machines sold in 2014 are 210.

The actual units of machines sold in 2013 are 200.

The selling price in 2013 is $40,000.

The actual kgs of materials used to produce output in 2013 are 300,000.

The actual units of machines required to sell are 225,000.

The material cost per unit in 2013 is $8.

The conversion capacity is 250.

The conversion costs are $2,000,000.

3.

To determine

To explain: The answers in requirement 2 and the indication of each component.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 12.23E

1.

To determine

The operating income in both the year 2016 and 2017.

Given information:

For the year 2013,

The number of machines sold is 200.

The average selling price is $40,000 per machine.

The number of machines purchased is 300,000.

The direct materials cost per kg is $8.

The conversion cost is $2,000,000.

The selling and customer service cost is $1,000,000.

For the year 2014,

The number of machines sold is 210.

The average selling price is $42,000 per machine.

The number of machines purchased is 310,000.

The direct materials cost per kg is $8.50.

The conversion cost is $2,025,000.

The selling and customer service cost is $940,500.

2.

To determine

The growth, price recovery and productivity components that explain the change in operating income.

Given information:

The actual units of machines sold in 2014 are 210.

The actual units of machines sold in 2013 are 200.

The selling price in 2013 is $40,000.

The actual kgs of materials used to produce output in 2013 are 300,000.

The actual units of machines required to sell are 225,000.

The material cost per unit in 2013 is $8.

The conversion capacity is 250.

The conversion costs are $2,000,000.

3.

To determine

To explain: The answers in requirement 2 and the indication of each component.

Expert Solution & Answer

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See solution

Answer 5

Chapter 12, Problem 12.23E

1.

To determine

The operating income in both the year 2016 and 2017.

Given information:

For the year 2013,

The number of machines sold is 200.

The average selling price is $40,000 per machine.

The number of machines purchased is 300,000.

The direct materials cost per kg is $8.

The conversion cost is $2,000,000.

The selling and customer service cost is $1,000,000.

For the year 2014,

The number of machines sold is 210.

The average selling price is $42,000 per machine.

The number of machines purchased is 310,000.

The direct materials cost per kg is $8.50.

The conversion cost is $2,025,000.

The selling and customer service cost is $940,500.

2.

To determine

The growth, price recovery and productivity components that explain the change in operating income.

Given information:

The actual units of machines sold in 2014 are 210.

The actual units of machines sold in 2013 are 200.

The selling price in 2013 is $40,000.

The actual kgs of materials used to produce output in 2013 are 300,000.

The actual units of machines required to sell are 225,000.

The material cost per unit in 2013 is $8.

The conversion capacity is 250.

The conversion costs are $2,000,000.

3.

To determine

To explain: The answers in requirement 2 and the indication of each component.

Answer 6

Chapter 12, Problem 12.23E

1.

To determine

The operating income in both the year 2016 and 2017.

Given information:

For the year 2013,

The number of machines sold is 200.

The average selling price is $40,000 per machine.

The number of machines purchased is 300,000.

The direct materials cost per kg is $8.

The conversion cost is $2,000,000.

The selling and customer service cost is $1,000,000.

For the year 2014,

The number of machines sold is 210.

The average selling price is $42,000 per machine.

The number of machines purchased is 310,000.

The direct materials cost per kg is $8.50.

The conversion cost is $2,025,000.

The selling and customer service cost is $940,500.

Answer 7

Chapter 12, Problem 12.23E

1.

To determine

The operating income in both the year 2016 and 2017.

Given information:

For the year 2013,

The number of machines sold is 200.

The average selling price is $40,000 per machine.

The number of machines purchased is 300,000.

The direct materials cost per kg is $8.

The conversion cost is $2,000,000.

The selling and customer service cost is $1,000,000.

For the year 2014,

The number of machines sold is 210.

The average selling price is $42,000 per machine.

The number of machines purchased is 310,000.

The direct materials cost per kg is $8.50.

The conversion cost is $2,025,000.

The selling and customer service cost is $940,500.

Answer 8

2.

To determine

The growth, price recovery and productivity components that explain the change in operating income.

Given information:

The actual units of machines sold in 2014 are 210.

The actual units of machines sold in 2013 are 200.

The selling price in 2013 is $40,000.

The actual kgs of materials used to produce output in 2013 are 300,000.

The actual units of machines required to sell are 225,000.

The material cost per unit in 2013 is $8.

The conversion capacity is 250.

The conversion costs are $2,000,000.

Answer 9

2.

To determine

The growth, price recovery and productivity components that explain the change in operating income.

Given information:

The actual units of machines sold in 2014 are 210.

The actual units of machines sold in 2013 are 200.

The selling price in 2013 is $40,000.

The actual kgs of materials used to produce output in 2013 are 300,000.

The actual units of machines required to sell are 225,000.

The material cost per unit in 2013 is $8.

The conversion capacity is 250.

The conversion costs are $2,000,000.

Answer 10

3.

To determine

To explain: The answers in requirement 2 and the indication of each component.

Answer 11

3.

To determine

To explain: The answers in requirement 2 and the indication of each component.

Answer 12

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Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 12 - Define strategy.Ch. 12 - Describe the five key forces to consider when...Ch. 12 - Prob. 12.3Q Ch. 12 - What is a customer preference map, and why is it...Ch. 12 - Prob. 12.5Q Ch. 12 - What are four key perspectives in the balanced...Ch. 12 - What are the five types of conditions to consider...Ch. 12 - Describe three features of a good balanced...Ch. 12 - What are three important pitfalls to avoid when...Ch. 12 - Describe three key components in doing a strategic...

To explain: The answers in requirement 2 and the indication of each component.

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