Plz help without plagiarism A yard tool manufacturer can produce either metal shovels or rakes. Given the following estimated operating data, use differential analysis to determine which product would result in the highest net income?Shovels Rakes200,000 250,000$30.00 $20.00Units produced and soldUnit selling priceManufacturing costs:Variable (per unit)Fixed (total)Selling and administrative expenses:Variable (per unit)Fixed (total)$18.00 $9.00$600,000$2.00 $2.00$140,000Assume the manufacturer currently produces rakes. What are the incremental revenues and costs if the rakes are replaced with shovels?Incremental revenue:Revenue forgone on rakesAdditional revenue from shovels priceIncremental revenueIncremental costs:Additional cost of goods soldSavings on rakes not producedSavings on selling and administrativeIncremental costsNet differential cost of producing shovels $$$$0 x0 x0X0 x0 x00

Variable costs are costs which changes along with change in sales level. Fixed costs do not change…

A yard tool manufacturer can produce either metal shovels or rakes. Given the following estimated operating data, use differential analysis to determine which product would result in the highest net income? Shovels Rakes 200,000 250,000 $30.00 $20.00 Units produced and sold Unit selling price Manufacturing costs: Variable (per unit) Fixed (total) Selling and administrative expenses: Variable (per unit) Fixed (total) $18.00 $9.00 $600,000 Incremental revenue Incremental costs: Additional cost of goods sold $2.00 $140,000 Assume the manufacturer currently produces rakes. What are the incremental revenues and costs if the rakes are replaced with shovels? Incremental revenue: Revenue forgone on rakes Additional revenue from shovels price $ $ $2.00 $ 0 x 0 x 0 x

A yard tool manufacturer can produce either metal shovels or rakes. Given the following estimated operating data, use differential analysis to determine which product would result in the highest net income? Shovels Rakes 200,000 250,000 $30.00 $20.00 Units produced and sold Unit selling price Manufacturing costs: Variable (per unit) Fixed (total) Selling and administrative expenses: Variable (per unit) Fixed (total) $18.00 $9.00 $600,000 Incremental revenue Incremental costs: Additional cost of goods sold $2.00 $140,000 Assume the manufacturer currently produces rakes. What are the incremental revenues and costs if the rakes are replaced with shovels? Incremental revenue: Revenue forgone on rakes Additional revenue from shovels price $ $ $2.00 $ 0 x 0 x 0 x

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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