O v2.cengagenow.comMake or BuyA company manufactures various-sized plastic bottles for its medicinal product. The manufacturingcost for small bottles is $75 per unit (100 bottles), including fixed costs of $28 per unit. A proposal isoffered to purchase small bottles from an outside source for $40 per unit, plus $4 per unit for freight.a. Prepare a differential analysis dated July 31 to determine whether the company should make(Alternative 1) or buy (Alternative 2) the bottles, assuming fixed costs are unaffected by thedecision. If an amount is zero, enter "0". Use a minus sign to indicate a loss.Differential AnalysisMake Bottles (Alt. 1) or Buy Bottles (Alt. 2)July 31Make BottlesBuy Bottles(Alternative 2)Differential Effect on Income(Alternative 1)(Alternative 2)Sales price%24%$4Unit costs:Purchase price$4-40-40Freight-4-4Variable costs-47-47 X47Fixed factory-28-28overheadIncome (Loss)-75-119 X31хFeedbackCheck My Work 1 more Check My Work uses remaining.Previous%24%24%24%24%24%24%24

DIFFERENTIAL ANALYSIS MAKE BOTTLES (ALT 1) OR BUY BOTTLES (ALT 2) AS ON JULY 31 MAKE BOTTLES…

Answered: O v2.cengagenow.com Make or Buy A…

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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Question 2 a) Nana Trading manufactures professional paperweights and has been approached by a new customer with an offer to purchase 15,000 units at a per unit price of RM7.00. the new customer is geographically separated from Nana Trading's other customers, and existing sales will not be affected. Nana Trading normally produces 82,000 units but plans to produce and sell only 65,000 in the coming year. The normal sales price is RM12 per unit. Unit cost information is as follows: RM Direct materials 3.10 Direct labor 2.25 Variable overhead 1.15 Fixed overhead 1.80 8.30 Total Refer to the information above, if Nana Trading accepts the order, no fixed manufacturing activities will be affected because there is sufficient excess capacity. Required: i. What are the alternatives for Nana Trading? ii. Should Nana Trading accept the special order? By how much will profit increase or decrease if the order is accepted? b) Refer to the information for Nana Trading, suppose a customer wants to…
please provide explanation , computation for each part and numbers clearly answer in text form
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Question 3 Assume that HASF furniture Inc., as described, currently purchases the chair cushions for its lawn set from an outside vendor for $30 per set. Modern Furniture’s chief operations officer wants an analysis of the comparative costs of manufacturing these cushions to determine whether bringing the manufacturing in-house would save the firm money. Additional information shows that if Modern furniture’s were to manufacture the cushions, the materials cost would be $16 and the labor cost would be $10 per set and that it would have to purchase cutting and sewing equipment, which would add $25,000 to annual fixed costs. NOTE: No need to enter comma between numbers Required Computation for 10,000 units What amount should have been inccrued if company produce 10,000 units What amount should have been inccrued if company purhcase 10,000 units from outside What amount company save if company make 10,000 cushions
Please read the directive and questions carefully and answer the questions as follows. Use the correct rules available and formulas. Also explain in steps by steps .
Clancy's Motors has the following demand to meet for custom manufactured fuel injector parts. Period (weeks) 2 4 5 6 7 Gross requirements Lead time = 1 week; Setup cost = $200; holding cost = $10 per week. 15 20 10 25 A. What is the total cost (holding and ordering) of using lot-for-lot ordering technique? B. What is the total cost (holding and ordering) of using EOQ ordering technique? C. What is the total cost (holding and ordering) of using Periodic Order Quantity (POQ) technique? 00
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
to.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launch=Http%253A78232 XYZ Corp. sells recreational equipment. One of the company's products, a small camp stove, sells for $140 per unit. Variable expenses are $98 per stove, and fixed expenses associated with the stove total $205,800 per month. Ac raw Will Required: 1. What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.) 3. At present, the company is selling 10,000 stoves per month. The sales manager is convinced that a 10% reduction in the selling price would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes. 4. Refer to the data in Required 3. How many stoves would…
A buyer for home furnishings orders merchandise from a North Carolina vendor totaling 2,800. The vendor offers two options a) 3/10 net 30 FOB Destination (to buyers' warehouse or (b) 6/10 FOB Factory. If transportation costs are @250, which would be the better option for the buyer?
Please solve the sub parts A,B,and C. Please no reject im needed in 120 minutes thank u
A buyer for home furnishings orders merchandise from a North Carolina vendor totaling 2,800. The vendor offers two options a) 3/10 net 30 FOB Destination (to buyers' warehouse or (b) 6/10 FOB Factory. If transportation costs are @250, which would be the better option for the buyer?
Q4: Company XYZ has a choice of two machines to purchase. They both make the same product which sells for 20$. Machine A has FC of 8000$ and per unit cost of 6$. Machine B has FC of 20000$ and per .unit cost of 2$. Under what conditions would you select machine A

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