Description of this paper

See attachment for data. I need the answer to the...

Description

Solution


Question

See attachment for data. I need the answer to the questions below. 1. Assume that inventories will not change during the year. Prepare budgeted contribution approach product line income statements for the year ending 6/30/2009. Categorize fixed costs as either discretionary or committed. 2. Should Jerry Conrad decide to accept the Wadsworth Company special order? If so, what will be the new Hydro-Con return on sales? 3. Should the Superior Valve Division eliminate the Made to Order product line if there were no alternative uses for its production capacity? 4. If all resulting standard products could be sold, how should the MTO capacity be allocated? (Assume only the capacity currently being used to produce 20,000 MTO units would be used to produce additional standard products.) 5. Identify the strategic factors that Superior Valve should consider. 6. What changes, if any, should be made to the division?s cost system? Why? 7. What ethical issues, if any, should the division consider in connection with the 8. decision to eliminate MTO?

 

Paper#6357 | Written in 18-Jul-2015

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