1.a.
Average manufacturing time per order.
Given information:
Expected number of orders of B7 is 125 orders.
Manufacturing time per order of B7 is 40 hours.
Annual machine capacity for B7 is 6,000 hours.
1.b.
Average manufacturing time per order.
Given information:
Expected number of orders of B7 is 125 orders.
Manufacturing time per order of B7 is 40 hours.
Annual machine capacity for B7 is 6,000 hours.
Expected number of orders of A3 is 10 orders.
Manufacturing time per order of A3 is 50 hours.
2.
Whether the introduction of new product is beneficial for B Corporation.
Given information:
Selling price per order of B7 is $15,000.
Number of orders of B7 is 125 orders.
Variable cost per order of B7 is $10,000.
Total manufacturing hours per order of B7 are 140 hours.
Inventory carrying cost per order of B7 is $0.50.
Selling price per order of A3 is $13,500.
Number of orders of A3 is 10 orders.
Variable cost per order of A3 is $9,000.
Total manufacturing hours per order of A3 are 315 hours.
Inventory carrying cost per order of A3 is $0.45.
3.
Factors that are to be considered before implementing any of the alternatives.
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Chapter 19 Solutions
COST ACCT-W/ACCESS >C< NON-MAJORS
- PLEASE HELParrow_forwardOne company might depreciate a new computer over three years while another company might depreciate the same model computer over five years...and both companies are right. True Falsearrow_forwardno chatgpAccumulated Depreciation will appear as a deduction within the section of the balance sheet labeled as Property, Plant and Equipment. True Falsearrow_forward
- No ai Depreciation Expense is shown on the income statement in order to achieve accounting's matching principle. True Falsearrow_forwardno aiOne company might depreciate a new computer over three years while another company might depreciate the same model computer over five years...and both companies are right. True Falsearrow_forwardno ai An asset's useful life is the same as its physical life? True Falsearrow_forward
- no ai Depreciation Expense reflects an allocation of an asset's original cost rather than an allocation based on the economic value that is being consumed. True Falsearrow_forwardThe purpose of depreciation is to have the balance sheet report the current value of an asset. True Falsearrow_forwardDepreciation Expense shown on a company's income statement must be the same amount as the depreciation expense on the company's income tax return. True Falsearrow_forward
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