Cabin Creek Company is considering adding a new line of kitchen cabinets. The company's accountant provided the following estimated data for these cabinets: Annual sales Selling price per unit Variable manufacturing costs per unit Variable selling costs per unit Incremental fixed costs per year: Manufacturing Selling Allocated common costs per year: Manufacturing Selling and administrative 800 units $ 3,690 $ 1,690 $ 540 $ 494,400 $ 74,000 $ 99,000 $ 131,000 If the kitchen cabinets are added as a new product line, the company expects that the contribution margin earned from selling its other products will decrease by $238,000 per year. Required: 1. What is the annual financial advantage (disadvantage) of adding the new line of kitchen cabinets? 2. What is the lowest selling price per unit that could be charged for the cabinets and still make it economically desirable for the company to add the new product line?

I need an answer for number 1, please, thank you!

X-Cee-Ski Company recently expanded its manufacturing capacity, which will allow it to produce up to 21,000 pairs of cross-country skis of the mountaineering model or the touring model. The Sales Department assures management that it can sell between 9,000 and 14,000 pairs of either product this year. Because the models are very similar, X-Cee-Ski will produce only one of the two models. Fixed costs will total $320,000 if the mountaineering model is produced but will be only$220,000 if the touring model is produced. X-Cee-Ski is subject to a 40 percent income tax rate.Required: 1. If X-Cee-Ski Company desires an after-tax net income of $48,000, how many pairs of tour-ing model skis will the company have to sell? 2. Suppose that X-Cee-Ski Company decided to produce only one model of skis. What is the total sales revenue at which X-Cee-Ski Company would make the same profit or loss regard less of the ski model it decided to produce? 3. If the Sales Department could guarantee the annual…

Laser Cast Inc. manufactures color laser printers. Model J20 presently sells for $325 and has a product cost of $260, as follows: Line Item Description Amount Direct materials $190 Direct labor 50 Factory overhead 20 Total $260 It is estimated that the competitive selling price for color laser printers of this type will drop to $310 next year. Laser Cast has established a target cost to maintain its historical markup percentage on product cost. Engineers have provided the following cost-reduction ideas: 1. Purchase a plastic printer cover with snap-on assembly, rather than with screws. This will reduce the amount of direct labor by 9 minutes per unit.2. Add an inspection step that will add six minutes per unit of direct labor but reduce the materials cost by $7 per unit.3. Decrease the cycle time of the injection molding machine from four minutes to three minutes per part. Thirty percent of the direct labor and 45% of the factory overhead are related to running injection…