Large Medium| Small Unit selling price $184 $160 $100 Unit variable cost 130 120 76 Unit contribution margin $ 54 $ 40 $ 24 Autoclave hours per unit 1 Total process hours per unit 4 Budgeted units of production 3,000 | 3,000 3,000 2. 3.

Blossom Industries is a decentralized firm. It has two production centres: Vancouver and Kamloops. Each one is evaluated based on its return on investment. Vancouver has the capacity to manufacture 330,000 units of component TR222. Vancouver's variable costs are $150 per unit. Kamloops uses component TR222 in one of its products. Kamloops adds $90 of variable costs to the component and sells the final product for $465. Consider the following independent situations: Vancouver can sell all 330,000 units of TR222 on the open market at a price of $240 per unit. Kamloops is willing to buy 33,000 of those units. What should the transfer price be? Transfer price eTextbook and Medial Of the 330,000 units of component TR222 it can produce, Vancouver can sell 231,000 units on the open market at a price of $240 per unit. Kamloops is willing to buy an additional 33,000 units. What should the minimum transfer price be? Minimum transfer price eTextbook and Media Transfer price per unit $ $ Of the…

Artisan Metalworks has a bottleneck in their production that occurs within the engraving department. Jamal Moore, the COO, is considering hiring an extra worker, whose salary will be $54,000 per year, to solve the problem. With this extra worker, the company could produce and sell 3,000 more units per year. Currently, the selling price per unit is $25.00 and the cost per unit is $7.80. Direct materials $3.50 Direct labor 1.10 Variable overhead 0.40 Fixed overhead (primarily depreciation of equipment) 2.80 Total $7.80 Using the information provided, calculate the annual financial impact of hiring the extra worker. Profit $_____ ______

Product Decisions Under Bottlenecked Operations Youngstown Glass Company manufactures three types of safety plate glass: large, medium, and small. All three products have high demand. Thus, Youngstown Glass is able to sell all the safety glass it can make. The production process includes an autoclave operation, which is a pressurized heat treatment. The autoclave is a production bottleneck. Total fixed costs are $158,000 for the company as a whole. In addition, the following information is available about the three products:   Large Medium Small Unit selling price $235   $429   $149   Unit variable cost 185   351   131   Unit contribution margin $ 50   $ 78   $ 18   Autoclave hours per unit 4   6   2   Total process hours per unit 8   12   6   Budgeted units of production 2,400   2,400   2,400   a.  Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production.   Large Medium Small Total Units…

Product Decisions Under Bottlenecked Operations Youngstown Glass Company manufactures three types of safety plate glass: large, medium, and small. All three products have high demand. Thus, Youngstown Glass is able to sell all the safety glass it can make. The production process includes an autoclave operation, which is a pressurized heat treatment. The autoclave is a production bottleneck. Total fixed costs are $296,000 for the company as a whole. In addition, the following information is available about the three products:   Large Medium Small Unit selling price $324   $286   $158   Unit variable cost 255   234   139   Unit contribution margin $ 69   $ 52   $ 19   Autoclave hours per unit 6   4   2   Total process hours per unit 18   8   6   Budgeted units of production 4,700   4,700   4,700   a.  Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production.   Large Medium Small Total Units…

The Rosa model of Mohave Corporation is currently manufactured as a very plain umbrella with no decoration. The company is considering changing this product to a much more decorative model by adding a silk-screened design and embellishments. A summary of the expected costs and revenues for Mohave's two options follows: Estimated demand Estimated sales price Estimated manufacturing cost per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit manufacturing cost Additional development cost Rosa Umbrella 29,000 units $31.00 $ 21.50 4.50 3.50 6.00 $ 35.50 Decorated Umbrella 29,000 units $ 41.00 $ 23.50 7.00 5.50 6.00 $ 42.00 $ 12,000 Required: 1. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations. 2. Should Mohave add decorations to the Rosa umbrella? 3-a.Suppose the higher price of the decorated umbrella is expected to reduce estimated demand for this product to 27,000 units.…

Product Decisions Under Bottlenecked Operations Youngstown Glass Company manufactures three types of safety plate glass: large, medium, and small. All three products have high demand. Thus, Youngstown Glass is able to sell all the safety glass it can make. The production process includes an autoclave operation, which is a pressurized heat treatment. The autoclave is a production bottleneck. Total fixed costs are $177,000 for the company as a whole. In addition, the following information is available about the three products:   Large Medium Small Unit selling price $353   $99   $282   Unit variable cost 278   81   248   Unit contribution margin $ 75   $ 18   $ 34   Autoclave hours per unit 6   2   4   Total process hours per unit 18   6   8   Budgeted units of production 3,100   3,100   3,100   a.  Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production.   Large Medium Small Total Units…

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Valmont Company has developed a new industrial piece of equipment called the XP-200. The company is considering two methods of establishing a selling price for the XP-200-absorption cost-plus pricing and value-based pricing. Valmont's cost accounting system reports an absorption unit product cost for XP-200 of $9,300. Its markup percentage on absorption cost is 85%. The company's marketing managers have expressed concerns about the use of absorption cost-plus pricing because it seems to overlook the fact that the XP-200 offers superior performance relative to the comparable piece of equipment sold by Valmont's primary competitor. More specifically, the XP-200 can be used for 18,000 hours before replacement. It only requires $1,900 of preventive maintenance during its useful life and it consumes $165 of electricity per 900 hours used. These figures compare favorably to the competing piece of equipment that sells for $18,000, needs to be replaced after 9,000 hours of use, requires $3,800…