PG Glass RESALE RECYCLING PROCESSING DISPOSAL REVENUE REVENUE PER UNIT PER UNIT COST PER UNIT COST PER UNIT PART Glass $12 $10 $6 $2 Steel frame 2 1 1 1 Rubber insulation 2 1 1. Glass Unlimited REVENUE REVENUE PER UNIT PER UNIT RESALE RECYCLING PROCESSING DISPOSAL COST PER UNIT COST PER PART UNIT Reflective glass $15 $12 $7 $3 Aluminium frame 4 3 2. 2. Rubber insulation 2 1 1 2.

Coastal Cycles makes three models of electric bicycles: E20, E35, and E60. The models differ by the size of the battery and the quality of the components. The bicycles are produced in two departments. The Assembly Department purchases components from vendors and assembles them into bicycles. The models E20 and E35 are complete and ready for sale after completing the assembly process. The model E60 undergoes further process in Customization Department, which is actually just a small area in the same building as the Assembly Department.   Conversion costs in both the Assembly Department and Customization Department are based on the number of units produced. There are never any work-in-process inventories. Data for production in November are shown in the following table.       Total   E20   E35   E60   Units produced   11,500     4,500     4,000     3,000     Materials cost $ 8,590,000   $ 2,250,000   $ 3,040,000   $ 3,300,000   Conversion costs                         Assembly…

Mohave Corporation is considering eliminating a product from its Sand Trap line of beach umbrellas. This collection is aimed at people who spend time on the beach or have an outdoor patio near the beach. Two products, the Indigo and Verde umbrellas, have impressive sales. However, sales for the Azul model have been dismal. Mohave's information related to the Sand Trap line is shown as follows. Segmented Income Statement for Mohave's Sand Trap Beach Umbrella Products Indigo $ 60,000 34,000 $ 26,000 1,900 $ 24,100 17,840 $ 6,260 Sales revenue Variable costs. Contribution margin Less: Direct fixed costs Segment margin Common fixed costs* Net operating income (loss) *Allocated based on total sales revenue Mohave determined that eliminating the Azul model would cause sales of the Indigo and Verde models to increase by 10 percent and 15 percent, respectively. Variable costs for these two models would increase proportionately. Although the direct fixed costs could be eliminated, the common…

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