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Question;1. #Ex 25-16;Based on the data below, assume that Sirrus;Phone Company uses the product cost concept of applying the cost-plus approach;to product pricing.;Variable Costs: Fixed;Costs;Direct materials 130.00;per unit Factory overhead 175000;Direct labor 50.00 Selling and adm. Exp 70000;Factory overhead 35.00;Selling and adm. Exp 25.00;Total 240.00 per unit;a.;Determine the total;manufacturing costs and the cost amount per unit for the production and sale of;3500 units for mobile phones.;b.;Determine the markup percentage;(rounded to two decimal places) for mobile phones.;c.;Determine the selling price of;mobile phones. Round to the nearest dollar.;#2. T7;1.The sales, income from operations, and invested;assets for each division of Winston Company are as follows;Sales;Income fromOperations;InvestedAssets;Division C;\$5,000,000;\$630,000;\$3,900,000;Division D;6,800,000;760,000;4,300,000;Division E;3,750,000;750,000;7,250,000;2. Management has established a minimum rate of return for invested assets of;8%.;(a);Determine the residual income for each division.;(b);Based on residual income, which of the divisions is the most;profitable?;#3 (T8) answer one of the multiple choice below;The condensed income statement for a business;for the past year is presented as follows;Product;F;G;H;Total;Sales;\$300,000;\$220,000;\$340,000;\$860,000;Less variable costs;180,000;190,000;220,000;590,000;Contribution margin;\$120,000;\$ 30,000;\$120,000;\$270,000;Less fixed costs;50,000;50,000;40,000;140,000;Income (loss) from oper.;\$ 70,000;\$ (20,000);\$ 80,000;\$130,000;Management is considering the discontinuance of the manufacture and sale of Product;G at the beginning of the current year. The discontinuance would have no effect;on the total fixed costs and expenses or on the sales of Products F and H. What;is the amount of change in net income for the current year that will result;from the discontinuance of Product G?;\$20,000 increase;\$30,000 increase;\$20,000 decrease;\$30,000 decrease;#4 (T13);Pnok Company has been purchasing a component;Part Q, for \$18.90 a unit. Pnok is currently operating at 70% of capacity and;no significant increase in production is anticipated in the near future. The;cost of manufacturing a unit of Part Q, determined by absorption costing;methods, is estimated as follows;Direct materials;\$11.25;Direct labor;4.50;Variable factory overhead;1.12;Fixed factory overhead;3.15;Total;\$20.02;1. Prepare a differential analysis report, dated March 12 of the current year;on the decision to make or buy Part Q.;#5 (T14);FDE Manufacturing;Company has a normal plant capacity of 37,500 units per month. Because of an;extra large quantity of inventory on hand, it expects to produce only 30,000;units in May. Monthly fixed costs and expenses are \$112,500 (\$3 per unit at;normal plant capacity) and variable costs and expenses are \$8.25 per unit. The;present selling price is \$13.50 per unit. The company has an opportunity to;sell 7,500 additional units at \$9.90 per unit to an exporter who plans to;market the product under its own brand name in a foreign market. The additional;business is therefore not expected to affect the regular selling price or;quantity of sales of FDE Manufacturing Company.;Prepare a differential analysis report, dated April 21 of the current year, on;the proposal to sell at the special price.

Paper#44696 | Written in 18-Jul-2015

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