(b) Al Khoud Company is producing Motorcycle parts and is currently in the process of evaluating a specific part named Khoud-11 which cost information is given below. Development costs Selling Price (Local) Ratio of Sales between Muscat & Dubai Monthly Production Cycle Parts produced per cycle Indirect manufacturing costs per cycle OMR41,000 Production Period OMR15.50 Markets 1:2 1 16,000 units Direct production costs per cycle OMR28,600 Delivery charges per cycle 2 years Muscat & Dubai 1:1 OMR10,200 OMR36,500 OMR15,500 Ratio of Sales to Production Setup costs per cycle Assuming that the selling price for Khoud-11 in Muscat is 50% of that in Dubai, calculate both, the estimated life-cycle revenues for the full production period and the life-cycle operating income for the first year only.
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- (b) Al Khoud Company is producing Motorcycle parts and is currently in the process of evaluating a specific part named Khoud-11 which cost information is given below. Development costs Selling Price (Local) Ratio of Sales between Muscat & Dubai OMR24,000 OMR51 1:2 3 years Muscat & Dubai Production Period Markets Ratio of Sales to Production 1:1 Monthly Production Cycle Parts produced per cycle Indirect manufacturing costs per cycle Setup costs per cycle Direct production costs per cycle OMR26,000 | Delivery charges per cycle OMR12,800 OMR38,000 OMR16,500 1 17,000 units Assuming that the selling price for Khoud-11 in Muscat is 50% of that in Dubai, calculate both, the estimated life-cycle revenues for the full production period and the life-cycle operating income for the first year only.Q.11) Pak Cables SAOG makes four components P, Q, R and S for which costs in the forthcoming year are expected to be as follows: Product (code name) Production (Units) Unit Margin Costs: Direct Materials Direct Labour Variable production overheads P R S 2,000 4,000 8,000 6,000 Omani Rial Omani Rial Omani Rial Omani Rial 08 10 04 08 16 18 08 12 04 06 02 04 28 34 14 24 Directly attributable fixed costs per annum and committed fixed costs: Incurred as direct consequence of making P Incurred as direct consequence of making Q Incurred as direct consequence of making R Incurred as direct consequence of making S Other fixed costs (committed) Omani Rial 2,000 10,000 12,000 16,000 60,000 100,000 Directly attributable fixed costs are all items of cash expenditures that are incurred as a direct the product in house. A sub contractor has offered to supply units of P, Q, R and S for Omani Rial 24, Omani Rial 42, Omani 28 respectively. Required: A. Which of the components Pak Cables SAOG should make…:Salem Company has the following information for tables production Number of units Sales price per unit Variable costs per unit 1,800 $1,900 1,140 The Contribution margin per unit is 440 SA O 760 S.B 660 S.c O S100.D O يمنع الانتقال إلى السؤال التالى إجراء تغي يرات على هذه الإجابة. شب هنا ل لبحث a
- (d) DRS Manufacturing has the following standards for one of its products: [DRS Manufacturing mempunyai standad berikut untuk salah satu produknya:] Table 9: Production Costs [Jadual 9: Kos-kos Pengeluaran] Direct materials (2 meter @ RM5) Direct labor (0.5 hour @ RM10) RM10 RM5 During the most recent year, the following actual results were recorded: [Pada tahun terakhir, hasil sebenar berikut direkodkan:] Table 10: Production Costs [Jadual 10: Kos-kos Pengeluaran] 6,000 units Production Direct materials (11,750 meter purchased and used) RM61,100 Direct labor (2,900 hours) RM29,580 Required: (Dikehendaki:] Interpret the materials price and usage variances. [Tafsirkan varian harga dan penggunaan bahan-bahan.] (ii) Interpret the labor rate and efficiency variances. [Tafsirkan varian kadar buruh dan kecekapan.]Exxarro Llimited is considering pricing and costing for the year ahead. The following data based on expected production and sales of 15 000 units are provided for analysis:Variable manufacturing costR1 185 000Fixed manufacturing costR510 000Sales commissionR5 per unit soldFixed administration costR130 000SalesR210 per unit Study the information provided above and answer the following questions independently:4.1 Calculate the break-even sales value. 4.2 Calculate the sales volume required to achieve a profit of R 800 000. 4.3 Suppose Exxaro Limited is considering a decrease of 10% per unit in the selling price of the product with the expectation that it would increase sales volume by 10%. Is this a good idea? Motivate your answer with relevant calculations.Rossiter Fittings produces two models of pipe fittings for underwater lines. The two models (RF-12 and RF-25) have the following characteristics, as developed by a product cost analyst RF-12 RF-25 $ 527 $367 11,997 $ 387 Selling price per unit Variable cost per unit $ 307 Expected units sold per year 3,483 The total fixed costs per year for the company are $1,118,960. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix is the same at the break-even point, compute the break-even point in units. c. The head of marketing agrees with the data provided by the cost analyst but believes that the sales of the RF-12 model will be double in units from what the cost analyst predicts. The head of marketing agrees that the total unit volume is likely to be as predicted by the cost analyst. What would be the break-even point of sales in units using the assumptions of the head of marketing?
- The XYZ Company produces and sells two products: The Riffs and The Raffs. Below is revenue and cost information to facilitate the development of a basic segmented income statement. Product Riffs Raffs Sales Price per unit $8.00 6.00 Variable Cost per unit $3.20 3.00 Traceable Fixed Costs $62,000 $44,000 It is expected that the company will incur $21,000 of common fixed expenses and unit sales are expected to be 12,000 of Riffs and 18,000 of Raffs. Required: Construct a Contribution Format Income Statement segmented by product line and company total.Jarred Manufacturing has a valve division that manufactures and sells a standard valve.Capacity in Units 100 000 unitsSelling Price to external customers R300Variable Costs per unit R160Fixed Costs (based on capacity) R90 per unitThe company has a Pump division that could use this valve in one of its pumps. The pump division is currently purchasing 10 000 valves per year from a German supplier at a cost of R290 per valve. Required;4.1 Assuming that the Valve Division has ample idle capacity to handle all of the Pump Division needs. What is the acceptable range, if any, for the transfer price between the two divisions? 4.2 Assuming that the Valve Division is selling all of its valves that it can produce to external customers. What is the acceptable range, if any, for the transfer price between the two divisions? 4.3 Assuming that the Valve Division is selling all of its valves that it can produce to external customers and that R30 in variable costs can be avoided on inter-division…Collyer Products Inc. has a Valve Division that manufactures and sells a standard valve as follows: Capacity in units Selling price to outside customers on the intermediate market Variable costs per unit Fixed costs per unit (based on capacity) 10,000 15 8 5 The company has a Pump Division that could use this valve in the manufacture of one of its pumps. The Pump Division is currently purchasing 10,000 valves per year from an overseas supplier at a cost of $14 per valve. 3. Assume again that the Valve Division is selling all that it can produce to outside customers on the intermediate market. Also assume that $2 in variable expenses can be avoided on transfers within the company, due to reduced selling costs. What is the acceptable range, if any, for the transfer price between the two divisions? Transfer price 4. Assume the Pump Division needs 20,000 special high-pressure valves per year. The Valve Division's variable costs to manufacture and ship the special valve would be $10 per…
- Abu Manufacturing sdn. Bhd. has 3 product A, B and C. Currently sales cost and the selling price details, and processing time requirements are as follows: PRODUCT PRODUCT PRODUCT C A B Annual Sales (units) Selling Price (RM) Unit cost (RM) Processing time Required per unit (hours) 6000 6000 750 20.00 31.00 39.00 18.00 24.00 30.00 1. 1 2 The firm is working at fully capacity (13500 processing hours per year). Fixed manufacturing overheads are absorbed into unit costs by a charge of 200% of variable cost. This procedure fully absorbs the fixed manufacturing overhead. Assuming that • The selling price is not altered. Processing time can be switched from one product line to another. • The demand at current selling prices is: PRODUCT A PRODUCT B PRODUCT C 11000 8000 2000 You are required: a) To calculate the best production program or the next operating period and to indicate the increase in net profit that this should yield. b) Identify the opportunity cost.Hightech Sdn Bhd (HSB) produces knee guards for recreational activity, which are marketed throughout Malaysia. Selected cost and operating data relating to the product for two years are given below: Year 2020 Year 2021 Units in beginning inventory 0 ? Units produced during the year 18,000 10,800 Units sold during the year 14,400 14,400 Units in ending inventory 3,600 0 RM Selling price per unit 54 Manufacturing costs: Variable per unit produced: Direct materials 11 Direct labour 6 Variable overhead 5 Fixed per year 162,000 Selling and…Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 40,000 ceiling fans and 70,000 table fans in the coming year. Product price and cost information includes: Ceiling Fan Table Fan Price $56 $17 Unit variable cost $13 $8 Direct fixed cost $21,200 $43,000 Common fixed selling and administrative expenses total $98,000. Required: Question Content Area 1. What is the sales mix estimated for next year (calculated to the lowest whole number for each product)?Sales mix of ceiling fans to table fans = ___________ : ______________ 2. Using the sales mix from Requirement 1, form a package of ceiling fans and table fans. How many ceiling fans and table fans are sold at break-even? Round your intermediate calculations and final answers to the nearest whole number. Break-even ceiling fans _______ Break-even table fans ______ 3. Prepare a contribution-margin-based income…