The operating income in both the year 2012 and 2013. Given information: For the year 2012, The number of Kits produced and sold is 8,000. The average selling price is $95 per kit. The average cost per Kit is $32. The conversion cost is $280,000. For the year 2013, The number of Kits sold is 11,000. The average selling price is $80 per kit. The average cost per Kit is $32. The conversion cost is $260,000.

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Answer 1

Question

Chapter 12, Problem 12.31P

1.

To determine

The operating income in both the year 2012 and 2013.

Given information:

For the year 2012,

The number of Kits produced and sold is 8,000.

The average selling price is $95 per kit.

The average cost per Kit is $32.

The conversion cost is $280,000.

For the year 2013,

The number of Kits sold is 11,000.

The average selling price is $80 per kit.

The average cost per Kit is $32.

The conversion cost is $260,000.

2.

To determine

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

Given information:

The actual units of Kits sold in 2013 are 11,000.

The actual units of Kits sold in 2012 are 8,000.

The selling price in 2012 is $95.

The actual units of Kits used to produce output in 2012 are 10,000.

The cost of the Kit in 2012 is $32.

The administrative capacity is 90 customers.

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 12.31P

1.

To determine

The operating income in both the year 2012 and 2013.

Given information:

For the year 2012,

The number of Kits produced and sold is 8,000.

The average selling price is $95 per kit.

The average cost per Kit is $32.

The conversion cost is $280,000.

For the year 2013,

The number of Kits sold is 11,000.

The average selling price is $80 per kit.

The average cost per Kit is $32.

The conversion cost is $260,000.

2.

To determine

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

Given information:

The actual units of Kits sold in 2013 are 11,000.

The actual units of Kits sold in 2012 are 8,000.

The selling price in 2012 is $95.

The actual units of Kits used to produce output in 2012 are 10,000.

The cost of the Kit in 2012 is $32.

The administrative capacity is 90 customers.

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 12.31P

1.

To determine

The operating income in both the year 2012 and 2013.

Given information:

For the year 2012,

The number of Kits produced and sold is 8,000.

The average selling price is $95 per kit.

The average cost per Kit is $32.

The conversion cost is $280,000.

For the year 2013,

The number of Kits sold is 11,000.

The average selling price is $80 per kit.

The average cost per Kit is $32.

The conversion cost is $260,000.

2.

To determine

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

Given information:

The actual units of Kits sold in 2013 are 11,000.

The actual units of Kits sold in 2012 are 8,000.

The selling price in 2012 is $95.

The actual units of Kits used to produce output in 2012 are 10,000.

The cost of the Kit in 2012 is $32.

The administrative capacity is 90 customers.

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 12.31P

1.

To determine

The operating income in both the year 2012 and 2013.

Given information:

For the year 2012,

The number of Kits produced and sold is 8,000.

The average selling price is $95 per kit.

The average cost per Kit is $32.

The conversion cost is $280,000.

For the year 2013,

The number of Kits sold is 11,000.

The average selling price is $80 per kit.

The average cost per Kit is $32.

The conversion cost is $260,000.

2.

To determine

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

Given information:

The actual units of Kits sold in 2013 are 11,000.

The actual units of Kits sold in 2012 are 8,000.

The selling price in 2012 is $95.

The actual units of Kits used to produce output in 2012 are 10,000.

The cost of the Kit in 2012 is $32.

The administrative capacity is 90 customers.

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 12.31P

1.

To determine

The operating income in both the year 2012 and 2013.

Given information:

For the year 2012,

The number of Kits produced and sold is 8,000.

The average selling price is $95 per kit.

The average cost per Kit is $32.

The conversion cost is $280,000.

For the year 2013,

The number of Kits sold is 11,000.

The average selling price is $80 per kit.

The average cost per Kit is $32.

The conversion cost is $260,000.

2.

To determine

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

Given information:

The actual units of Kits sold in 2013 are 11,000.

The actual units of Kits sold in 2012 are 8,000.

The selling price in 2012 is $95.

The actual units of Kits used to produce output in 2012 are 10,000.

The cost of the Kit in 2012 is $32.

The administrative capacity is 90 customers.

3.

To determine

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

Answer 6

Chapter 12, Problem 12.31P

1.

To determine

The operating income in both the year 2012 and 2013.

Given information:

For the year 2012,

The number of Kits produced and sold is 8,000.

The average selling price is $95 per kit.

The average cost per Kit is $32.

The conversion cost is $280,000.

For the year 2013,

The number of Kits sold is 11,000.

The average selling price is $80 per kit.

The average cost per Kit is $32.

The conversion cost is $260,000.

Answer 7

Chapter 12, Problem 12.31P

1.

To determine

The operating income in both the year 2012 and 2013.

Given information:

For the year 2012,

The number of Kits produced and sold is 8,000.

The average selling price is $95 per kit.

The average cost per Kit is $32.

The conversion cost is $280,000.

For the year 2013,

The number of Kits sold is 11,000.

The average selling price is $80 per kit.

The average cost per Kit is $32.

The conversion cost is $260,000.

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 Kits sold in 2013 are 11,000.

The actual units of Kits sold in 2012 are 8,000.

The selling price in 2012 is $95.

The actual units of Kits used to produce output in 2012 are 10,000.

The cost of the Kit in 2012 is $32.

The administrative capacity is 90 customers.

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 Kits sold in 2013 are 11,000.

The actual units of Kits sold in 2012 are 8,000.

The selling price in 2012 is $95.

The actual units of Kits used to produce output in 2012 are 10,000.

The cost of the Kit in 2012 is $32.

The administrative capacity is 90 customers.

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

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Answer 14

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Answer 15

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

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