Please do not give solution in image format thanku Cabin Creek Company is considering adding of a new line of kitchen cabinets. The company's accountant provided thefollowing estimated data for these cabinets:Annual sales$ 800$ 3,540$1,540$ 390Selling price per unitVariable manufacturing costs per unitVariable selling costs per unitIncremental fixed costs per year:ManufacturingSellingAllocated common costs per year:Manufacturing$ 479,400$ 59,000units.$ 84,000Selling and administrative$ 116,000If the kitchen cabinets are added as a new product line, the company expects that the contribution margin earned fromselling its other products will decrease by $208,000 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 desirablefor the company to add the new product line?

Units sold Per unit Total %Incremental Sales800 $ 3,540.00 $ 28,32,000100.00%Less: Variable…

Cabin Creek Company is considering adding of a new line of kitchen cabinets. The company's accountant provided the following estimated data for these cabinets: Annual sales $ 800 Selling price per unit $3,540 Variable manufacturing costs per unit $ 1,540 Variable selling costs per unit $ 390 Incremental fixed costs per year: Manufacturing Selling Allocated common costs per year: Manufacturing $ 479,400 $ 59,000 $ 84,000 $116,000 units Selling and administrative 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 $208,000 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?

Cabin Creek Company is considering adding of a new line of kitchen cabinets. The company's accountant provided the following estimated data for these cabinets: Annual sales $ 800 Selling price per unit $3,540 Variable manufacturing costs per unit $ 1,540 Variable selling costs per unit $ 390 Incremental fixed costs per year: Manufacturing Selling Allocated common costs per year: Manufacturing $ 479,400 $ 59,000 $ 84,000 $116,000 units Selling and administrative 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 $208,000 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?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10EB: Keleher Industries manufactures pet doors and sells them directly to the consumer via their web...

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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 r Allocated common costs per year: Manufacturing Selling and administrative 800 units $ 3,570 $ 1,570 $ 420 $ 482,400 $ 62,000 $ 87,000 $ 119,000 If the kitchen cabinets are added as a new product line, the company expects that the contribution margin earned from selling its of products will decrease by $214,000 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? Complete this question by entering your answers in the tabs below. Required…
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: 800 units $ 3,670 $ 1,670 $ 520 $ 492,400 $ 72,000 Manufacturing Selling and administrative $ 97,000 $ 129,000 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 $234,000 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? Complete this question by entering your answers in the tabs below.
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: 800 units. $ 3,680 $ 1,680 $ 530 $ 493,400 Manufacturing Selling Allocated common costs per year: Manufacturing Selling and administrative $ 73,000 $ 98,000 $ 130,000 If the kitchen cabinets are added as a new product line, the company expects that the contribution margin earned from selling products will decrease by $236,000 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 th company to add the new product line? Complete this question by entering your answers in the tabs below. Required 1…
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 $ 3,580 $ 1,580 $ 430 $ 483,400 $ 63,000 $ 88,000 $ 120,000 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 $216,000 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? Complete this question by entering your answers in the tabs below. Required…
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 800 units Selling price per unit $ 3,660 Variable manufacturing costs per unit $ 1,660 Variable selling costs per unit $ 510 Incremental fixed costs per year: Manufacturing $ 491,400 Selling $ 71,000 Allocated common costs per year: Manufacturing $ 96,000 Selling and administrative $ 128,000 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 $232,000 per year. Required: What is the annual financial advantage (disadvantage) of adding the new line of kitchen cabinets? 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?
Cabin Creek Company is considering adding of 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 Required 1 $ 3,530 $1,530 $ 380 Required 2 $ 478,400 $ 58,000 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 $206,000 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? $ 83,000 $ 115,000 Complete this question by entering your answers…