MC algo 10-3 Side Effects   Bubbly Waters currently sells 440 Class A spas, 590 Class C spas, and 340 deluxe model spas each year. The firm is considering adding a mid-class spa and expects that if it does, it can sell 515 units per year. However, if the new spa is added, Class A sales are expected to decline to 295 units while the Class C sales are expected to increase to 615. The sales of the deluxe model will not be affected. Class A spas sell for an average of $14,700 each. Class C spas are priced at $7,400 and the deluxe models sell for $18,400 each. The new mid-range spa will sell for $9,400. What annual sales figure should you use in your analysis?   Multiple Choice   $6,787,500   $4,841,000   $1,946,500   $7,157,500   $2,894,500

Cost Problem Taino Ventilators, Inc. makes a variety of ventilators. One of these products is a Ventilators model: Super Air-XL. This model includes the ultimate in technology and is in strong demand. Expected demand for this year is 57,000 units. Full production capacity for SuperAir--XL is 64,000 units, but 57,000 units are considered normal capacity. The following unit price and breakdown is applicable in 2022: Per Unit Sales Price Less manufacturing costs: $685.00 Materials $66.00 $22.00 $23.00 $26.00 $137.00 $548.00 Direct Labor Overhead: Variable Fixed Total manufacturing costs Gross Margin Less selling and administrative expenses Selling: Variable Fixed Administrative, Fixed Masks Options, variable* Total selling and administrative expenses |Net Profit before taxes $5.00 $46.00 $72.00 $59.00 $182.00 $366.00 During December, the company received 2 special orders request from: Custco-Medical and Laboratory-Apex. These orders are not part of the budgeted 57,000 units sales of…

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Structuring a Special-Order Problem The Millenium Company has been approached by a new customer with an offer to purchase 10,000 units of its model F80 at a price of $4.10 each. The new customer is geographically separated from the company's other customers, and existing sales would not be affected. Millenium normally produces 75,000 units of F80 per year but only plans to produce and sell 60,000 in the coming year. The normal sales price is $12 per unit. Unit cost information for the normal level of activity is as follows: Direct materials $1.75 Direct labor 2.50 Variable overhead 1.50 Fixed overhead 3.25    Total $9.00 Fixed overhead will not be affected by whether or not the special order is accepted. Required: 1.  Should the company accept or reject the special order?  2.  By how much will operating income increase or decrease if the order is accepted?  by

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Question 1 BARTELS Limited expects to sell 8,200 mobile phones this year. The cost of placing an order from its supplier is GH¢200. Each phone costs GH¢600, and carrying costs are 20% of the purchase price. Currently, they order 250 mobile phones at a time. They are however not sure if this is efficient. You have been tasked to help. a. Provide them with an optimal order quantity (round to the nearest whole) b. What savings will accrue to BARTELS Ltd as a result of the switch? c. Based on the EOQ, how many order cycles will BARTELS have for the year? d. If daily demand is 20 mobile phones with a lead time of 2 days and safety stock of 20 phones, what is the Reorder point for Cool Ltd?

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