Harrie 6 INCREMENTAL ANALYSIS ‘THEORIES: 1. Prelit utr cost and revenue deta hat wl ifr among strate corse slacton ate owns GS rere oraton TW dicecindormation © marginal cons 2 Ince anayss would na be appropri for (a: Av maker buy dco, 2B lbcatoncf ited raouce decison C limiatin ofan protabl segment GQ. msisiset maraacurng cost toes 3. Wiatithenesep ne dec ing pce? Seay e creraty wach edonet ate made G Crabbe glee owing ee © Peterman aaj in wih he rene raat dvapd ad ay . Compare amaies. Whit the ftowing best descbe relevant infration? ‘A. Focused on the past and diferr bebe Be shemales “oncer Focused on he part and no related tothe dion unde cosidertion © Focused on the fare and: dies etwoen the allematies under consideration . Focused onthe fate and treated othe dacion under consideration 5 A mur secomtng contribution to the eager decon making proces ‘rohinting posblecouees ation tor Av sssign esponsibility forthe derson GB rode reevane evenv and cost data bout exch ous fection. . determine he amouat of money that shocld be apet ons projec, i. decide whch ctor shuld te management conse: 6 Thekindofcost that an be ignored ina hort ere decision making) AP dierent cot 1a ysBD sunkeost “increment cost 2. hn Toppornty ce 2 SESE at hat et rom lingo aeatie hind @© Be prttogone ty sctingen aber a footer stuthutouy bone nt edopng mae 1. Scr nny be Sed to he ate with ec ton curt qeatow ‘The bestcanacrianton ofan opportunity cots ha tis Qo sevnt to decison making bat ot wal rfl in the aconsing poy 1B for aekvent to deco making ard isnot esuly refed io dhe counting records C Teloant fo deison making wd Is esuly cele in the acount core 1. fot reran fo denn making and swually refed nthe acouning 9. Whi he folowing i eet katy to be relevant tm in decing wheter © “tuslon covtof the of euchine Soutg totem forthe new machine Coral savings to beveled onthe new tucine DB. lterthenew machine 10. The Heath Care Divison of Piedmont Inewence employe thee dns [pocesors who are capable of procning SOIO chins each, The dvsion ‘irenly processes 1000 cn. The manager as eazy beet approached By two ste dvkens,- Ano Division weuld Bke te Heath Care Division fo frocss epprocinately 200 chine Property Dison would Uke the Heath Eine Disc to paves pprornutely 5100 hina The Health Cre Division trou be compensied by Ast Duin er Proper Divison for Thee came, sone tt fuse ae mutaly excavate, Chis preston anlary east leva ot Nato Ditton aerate nly Proper Divison alteration baat Dison and Property Disson erates ether Auto Dison nor Property Divison shirts 1 2 n uw ‘Gina contis relevant tie Relevant cons ee ‘ha ied an warble cost Scone ht wuld be ecu within the ean ange of rodeo tens th an expected Beaevent nthe tare Encipted ure cots that lifer among various erates Wich of the following im) = tre statement) about cost Bhavor in nero alysis? Fed cove wilt change between alert Rod cont ny change bebveen alternatives IL Varabie cots wlalaye ange Beteen ematves Aa x to Gatin sca ond mage: ce ey ot re Bee teeny ot ann ee & Sea icth emis S Selo siete‘ Bema “To determine ho posse outcome in dedsion analy incase hy predicon cere prove tke weg anges We eet onal ‘oalsralj C Increment analysis Di, preston amass Wuisgratan ces potent orate aly les (alge ei lca dr ip ecw ak svidabe ed co. 1 Varker cot ciety varie wit he changes in produtin wits Toul Bed cone teense ore sds reproduced within the relevant ange 1. Ceetipaon margin on produce that can be manfactued in wing the {ied ape isteevantin ie decision 123 elv. 1 a, 2 Which ofthe flowing i a cot that reguizs a tne cata of cash aes ‘evant for ftir doing? ‘Opportarty est C Relvant hence DL Incremental ene lnm nt ce eninge inc et £ Teneknpesietheomeeenstchene § seniniatirwmeanoman tae ‘tegeeerdioenorannacrags Pm Avoidable cots a: ‘A costs hat increase due ta higher volume of sty othe pafomance of tadastoralstvity (2) costs tats company must incor to perform an activity at given level bat wot be inured a company reduce or dcontinges thea the proits hate company frgoes by following particular couse of ation D. exes at were incured prio makings decson Sank conte ee ‘A~ coms hat increase duet higher volume of activ othe performance of sadaonal acti 'B. Cons that company must incu to perform an att a given level bat ‘illntbe insured fa company reduces or dicortinus the ety ‘he probs tat company forgone by following parte course of aton ‘that were incured prior to aking» decision Incremental even [A adiforenc conte between tx decisions. B._a concession based on compettive flares ‘ditonal revenue seress decison choices rom potential eles 1. the dferencebemoen sling price and varabl co Manufactusig the pars internally by a company cases AL the company tobe dependent upon supplies for tel delivery of pars 7s quay oth par tobe unde he conta of he company G_ lomer cost f production of the parts being azar 1. companys! operations to be more efficent than when the parts ere purchased froin suppbere ‘Within the contest of the ake or buy decision, when are fied costs relevant? AL Bed costs aralvaye relevent 16 1, Fixod costs ar neve relevant (©) hed ont are relevant when they fer amcngaenatives ‘D. Neamt e darned Wiha Caelyccsata ptiarston a Despite er rate amie, Tees Seite stl Scope Which ofthe fotlowing quate factors favors he buy choice na ako bay for acomponent? (GP mining long-term relaonship with supplies qual cna eral lean of idle npc 1D. thecomponentis ral to prodet ‘Beconrtol eng emp ‘ompony wits to eet the price render fe cape a 2 soe i spre a predetermined 1B. prices preset by mala condos § Aimer aisione meng gk Allo the gen choices ‘A company shoul! decide to make, rather than bay, apt ru for thle product the ‘AY company's production fii atfullcapacty 3. relevant est per wnt of making the part exceed th pert elevan cots of purchasing he past C supplier the parca predacea higher uay part (Q) spi ofthe prt has guestonabl relay “The cost of no reacvng ret from a space becuse you dei to mae the part "rather than baying irom an ots upper i conser ae) A sunkeost opportunity cost © fate cost Di fe ort, aie oy dso soppy ot shod ceed ibe GY Remon ide preted tei peta ps ® Siiewe pests inn Cvarable cons to produce theiten 125. fxn cots to produce the tm 90. Incremental analysis is most weak a, A inevaltng te master badge. ‘essing beeen tenet prevent aut method anh intemal aio @ in developing rtevct normatin or managen D. asarepcement eceaqeforvataneaaie Jemutng pclae dein once a Se aca ay pt & ecceeralerndt @ Biatiegeen one ‘ay commonly associated with apace orders Gt contin margin ont ok Br Be ri const re ‘tonal fxed cost that seated wo Deyeee he nese output, Wich ofthe folowing ics shoul be cen i dec water gocepta special order? aia ta step the pod or snvice 1B the pedicton copay of ccoony Ge npc on perce @ sit be ven cones Sperating ator near fal capac, fe that considera « reat to rl pc at oe «peal re portant cs ang tom et 3 vahuot hemp © tine value of mony need for god management ivan the following lit f cons, which oe shoul! be gored ina decison Produce edditonal unt of product fr sFactory that openings se Uo, 10% capciy and he ada! bsis wl nt ae up te reno Ree mbna Direct inher et pehour 128 theres excess expat the snumam rope pice ore speci order mst 2 nate os sted ith teal Ome (eel ied cast aso wih he spc ode. ‘Erabl cers and iermenn fed cots ssocated with te spec! order pls the conteboson margin usualy etme on eg uns. 37. afin ab fll capac th mint spa onder pice st cover Iotmattone en Ce re a uemaiate Sanne maha (eet re alee cana sarge cium eneenecegpnetsnnsi ems nt ig tc er ponsgacee oa Pol ling ard administrative expenses ps ested profit SSeS ees on Poet 39. Managers who often make pecia pring devon ae Pinotowing cst concepts n ir wo" “Foalcort Variable cost © Prodsetoort D. Foods ily as which “a. tncontst othe apd an vari con concepts wen sting ert Picea cont approach asus SE Re pavhup added too cot BP sing pice sty the arte Seam tsadod to vari cost 1D. nanthup add to prodetcot ‘1, Wich ofthe follwing is NOT or coe venfhe apprarhin produ ecg RT Fontan cont BP Precostconcent 5 le costconert ceamonly wed in appsng the Phat eestor wz426 or pros i 2 How does a company determine whether t sll product’ further? ‘Arf he costs to proces futher exceed the eos of coent production, te product enol be oldie” 1. I he const proces fate enced the costs of cureat produc (he Produk poco hr tr prcelng the ices neve fom sling he product efter farther processing rater tan the edisonal cot ncured nares procs the omPenY _ exceed te D, Ite revenue gered by processing the product father revenue fou eling the product asi” te company should Proe farther, 48. Which of the foowing cms i relevant in ding whether slit products {ple or proses am fat? "The unavoidable cons of fuer processing. ‘The aonal est of fares proeng The vaibi cst of opening te st oes D. Thecostof mover ubd to ae txt predicts The dacion fo hep oF drop produce or eres saves 2 see oiloatn of ae So punta inpct on ronaing produ ers 3 Eistronempoyeescmle G guwh yuri fe em © ate en scewer cones 45. When heres one sac eos the profit ht shold te produced fst i Eeprodac wid he hese ET nbton nrg por ofthe sec eeu. SF Sts pe parent ol saree © demand . contrition margin per unit 45, A useful device for solving production problems involving mulple prods A ied resoures [Ay goseasles pout product 8 Gotrbosin pr unt of sere resource Eset profit per unto prodect “ D, tol benese 2. When dee nyo podatin cin and xs dana spel 7 {aicn pode snd sero pot wi eit G Cononperantane ere 18 B MargnotSatey C. Conrbton rginn poe 1D. Operating Leverage «8 Ura Company has 2 product tha se the ame manufcsing facies and ‘aot be subcontracted Bach prod ha ue dart ie eee ‘tarafacorng capac. For shortran poe masination, Ura should ‘paralactur the product wit Be. ‘A lower al manufacturing oe forth manufac apy, 1S lower ttl ara menacing cov forthe manag apy grater rar polit pr bour of manalacarng pasty. ( fpeer conmbuton magn pe our of maracas cape 18 Aprotuctmicdecsion velo: esas vole mixaf he products omni cost. * 2 Eflccing thelr volume ial the produc mae ever. & profcng the wasumum amount of ems Yat provide he highest ‘onmbaton margin ._prodocng te mum amount of tens tary thelowert pant 50. The goin dcding whether to ad or drop products evi, o departments ‘eto obtain the peut A sedacson neal cos. ntributon poet cover unavoidable coms. Increase nae sores 1B. densa diet fied cor SL. As Long as its marginal cot i ower than ie magi even company ‘howl Ameren PSR ee Ea oem “eae cst behavior aod develop act ation to meas the cst of {ature prodacton 52. Whichofthe allowing shoul not be considered ina don of whee to op product ne! "Unavidal cots i Avoidable oot Reverse tat woud beat 1. Newnan impacts ofthe dessin53. The production ofa special onder wil ncesse gross profit when heeds "venue frm the spaal orders geste than the amc cf ‘AW nonvariale costs incrred n produc the onde 1B dlict atria an labor contin prodcng the order LC, fined cons narod in producing te ert D? angie cost ot producing the order: 5h im conaderng a specl order that wil enable company to make a se of Ps reser capacity, whichof the cose would belrleran. ‘ Matriae Deprecaton B. Dives abor ‘Variable OF ‘Acommpary owns equipment hati used to manuacre important pss for frodtion procs. The company plas tl th eon for P10 an Select one ofthe flowing alsmutves {Q) seq new equipment for P0000 (@) purchase the important parts om an oti company at per Fat ‘The company should quantativelyaralyze the allertives by comparing the costof martacare the pats ‘A. pls PID0DD othe cot of buying he pasts les P1000, 3B. tothecom of bying the part lee PLO. less Pi0a00 to the costol buying the pas {otheventel baying te pers For the past 12 years, the JLO Company has produced the sell lec motors that ito ts main product ine of dental dring equipment. As mata cos ave sandy increased, the cova of the JLO Company 1 reviewing the eesion to continue to ake the mall motors and has wenifed the flowing fact 1) The cgupment which i eed t manuacr he se motors has a ‘ook wae of P.500000, as 2 They cripind now by the eae motor manufcng param cl ued lnk ed fo ge pce Wk sey bing rented 5) Comparaison be purchased rom an oui saplr for P70. 4) Four of te people who work m de cw moter manufacturing ‘eparinent wil be termite and given sigh wees sepuation Py. 15) A000 cessed ote al ottanding onthe epapnent as ‘eed inte manaatcing proven. ‘Which of the terns above ae relevant othe decison tha he conrler has make? 130 A L24ands Eitan B asand D 2s.anda Inthe shortrun, which ements el prot hice decisions? ‘A. Contbutsn ourpn per nit BF coats per unt C Roed costs ssocited with product ines (B:, Contain margin per wit sare resource “Which of the following represent the se msjrininnceson ping deans? GB) castoners,competios and costs. "Bont, caste, and competion Goss competion, and como 1D cost, contol, and customers iow do castomersinuece pig dessins? ‘A by ousting a more expensive pod BL by unger card intend ofeach" By subeating ls expensive proc. DL None ofthe answers scat Diferentl anaes oases mostly on which of the following? ‘A opportuni cot B._cathoatiows oly. bom ath now and ootowe Dr ser scouting PROBLEMS! v ‘Sheley fe Company bas 24000 defective uns ofa product tat cot P8 per wit to manufacture and can be old for per uit. Tose nis an be evar for 2 per nit and told of tar fll pie of FI2 coh. If Shelley emorks the Caveats bow mech tcemmtlee cone wile? == 2 uv CP seam P 72000 D. paso = Ux Verus Company, a manuacurer flan, gtd i prodcion and et “two age a Pa per wnt forthe ye, Vatable manu cos ee ‘Rupe 93 un and fed manning on otra caer Seki © buy S000 lungs fr PLSD cock was ceed by Vers 9 ‘Tyan ba sffent pantcapay falc he date aay ‘Bidhpe bene the pructon would have toe done y the rset work as a ‘ alean overtime bss tan etna aoe cot anu otra any ly erp area te = ‘Company woud haveeatohrnpegst of rari ron = nso 2. PAD sin tg ae ra en ‘ert en crc cons would hav been amma (oe uy eal earwe PO. 3 nremental (decent ok nee PS, proto t kao POO) Apes job overs 4 Baas Co hs consdenbe xs manaacsring pay, spel ‘eat ahet incest fllowig applied manafctring overhead ‘variable conte To Bodo ‘somo inhouse dign costs, “if ces nee «roma 6800 aloo fo nour ds css tihng no moose desig wil be dane. sted he psa wl ‘seekers deine ning P8750 agente Sage (= ERE ri i 5 Rage ew aay mt ct ptt shaphtemamatone meee rete spires siete cet ac nar inching Sn cts. 19000 aa te pr se nally paar ng Soi See a ee Snakes ae ee $eeci= Oneaos 5 Dameeito ban Pcening Cpa i coeing ber wae 200 sof “Sonn s ceets siete ome ve ae 12 furtes analysis shows that if product Whirl is oasourced, fixed cst of P,000 stnbutableto ths product wil be reduced by 25% the product i outsourced, Sylvan will faetenaeitncee Ay Decrease proitby 72000 (a9 x16) and = any Decrease proftby Pappy 29" *!¥) “Kaw = 2uH0, Increase profit hy P2000 C¥Owy.as") ew D. Increase profit by Paco) ‘fomnat con 4 OO moon pearey Refering to the orginal data, ifSyivan Processing Company punhoeed the Product Whi, the space could be rened ut fr P6000 Ifthe pion ‘Sutsoured, prot would 300 decease, P2000 © decrease, 009 2a incense, P2000 D. increase, Pawo = 28% aoa a cots P4500 a mae 150 us of pc ne plane Thi nt nea? ‘aril of ann de eee FELON varate crea ESS ae F200 in fed evehand nel e © KE 7x8 decrease by P5000 Berney £35.00 i incense by P00 SOE The San Pascual Compary manufactures Patt Ne 6.48 for we nt production ‘yele. The cost per unit if 20,000 units of Part rd oe No.8 ee manfred ea Dect mati Pe Dict nor 0 Var overhnd 2 ed oven appl "foment FA Tie Sit Company ste ts 200 ants pat No. 86 San Exel oP per unt San Pascua wil nate the desion oy peo Sa Riser Se vng of ab a2 2. ‘So. Rin’s ote, PO per unit ofthe fed overhead applied would be oully _invted Tarhemere San Pascual determined tht te eased fren ‘oul be se tose rolvant cot nthe manasa of part No 57 In onder to Rave a savings of 725.00, the ant of te relevant costs that would be saved ite by sing the reltod facts in the arate of Pat No 579 wold Fm GO Perm ¢ mam 1a a tering Co, uss 10 ons of Part Nurnker S73 each month fn De production of compute, hel Patt Eisen compeir rine. The nt ast omaraatar or et of WSS Direct mati Mater handing Piano Diet labor SOP of dict mata oe) 2» Tonlmarecunngea eet) rata aerial andling repress the dict vale cast of te Racing Ri?utment hae applied to diet mater and pecused compecn ot of tc cos! Ths a part charg in sison maeaacag Ue pce he W573 cs inept Cad a cp Zansacre toe prs would ie Seals Us eae ek oe fom Garland he un ot of WSS Inert by Pu we pee D iremee ya ea radi psese © mo te Ss folowing crs at he planned Disc nter Picomo ‘Varia ovehead rm Feed one ‘am he sang pre i P50 i caps of 1000 ents Capac car covers. Varable cots wo Production Pied oveh eee a eR Scan pat prose tes ooo ee 18 occu. Bags hs recived pei onder rom Fora, I, who Fs feet to by 2000 ris at Peach, ‘nati be ererenta ot assoined with hi specl order? ‘A Peo 34000. Broo 2.00 1a Youhave Deen approach bya foregn customer who wants to ple a eet a ty nang ny You cond se or tee anton sctel 7 wen eral coma o 250 wit on ‘ence te ag a anadoalP.D pra owes, ona set Tapes js cont you AOR. Ns fad os Fe a nae produto S00 ws wil oo cg. You Sree sels bres cater obj on eg 20 Sed rtp you 2250p Pe APS = she spac order te amen fit Tenney OID tee F200 inaenby P62 5. Saree PO 14 ‘Te Llgian Company Bas (Gaperiors aly) accounts (eat sealable nd tis nde coder wil eree enya int rs ee anty 15 Tecontoproce 00 unite 70% pac cos ‘et ters Daretabor som Pactoryovwend al Selig expen 5% varabl 6% sed) 2000 tat pes wos the cmpny tv tc oma 725009 ‘Savana nett wuld be tagpd out fe nema A PST Ba Pao 138,”, 8 “Manufacturing Coste: Dowco Diner "am ea et Foeed indirect 10 “Marketing Costs: _ ‘en ‘Fixed on The company must decide to making the product — ee SDR tt crate cerstecr cee ray a Tecan oracles affected, but variable mor wee tonns arate marten css woud oninae a 0% fhe company The jun Cooperative, tne. . reduces 1000 uns of Par M per month. The ‘manufacturing conte ofthe prt are na the pat areas flloms Direct labor —_ Variable overhead paod Redevchont i Tol stacarngcont —_ Eo te nea apy ae SSSI Set nah ame b Feet pence Slowest ot td ps QS SRE rang come wal : ners Paaeree ee Sys Tinga Corporation curently manufrs manicures all component pas that ae wed fn the mamlacue of varius hand too A sel hes und nae doen tools The goed ean per un bed on 200 ice 136 w Dict met ren Dies abr “0 ical cheat tm Pando “elon iit ‘Sars Sts, nc has fred to supply 2000 units of he Hale to Ting for P1250 each deivered, Tinga curren has Sl capacity at aot be wed forany ter purpose acting the fe wit Decree the bandl tot by POSE Increase the hand unt cet by PLE Daceee the handle coe by FLS0. ‘. Increnee the handle nice by PSD. Mé Bonoy Company manufactures prt G for ase inthe production of ts ‘ancl product Thecovts peut for 1000 ns of ut area lois: Direct mates Ps Dirctnbor 5 ‘Vanabe overhead 6 Fried overhead f Tot ke Pampanga Compary as ofr os Mt Bana 10D ens of part fr P30 perants If Me Banoyaceps Pampangys offerte resd fae cold be {red to sve PA 00 elvan conte maniac of pact H. However TS Dertunt of teins ovrhend apple prt would cana. ‘ihatakernative's moce desirable wd by what amount? ‘smative ABCA A Mamaacnre F100 Manaactre P1500 Bay Pisq00 BO bay igo Mars Indust i # lt prodac company that curenymanefactss 30) ‘i of Prt G5! exch math ore nthe production of ts main prod. The Tacs now bong wed to produce Pat 42 have fied mow cet of {PIBDOO0 and a capac fo produce 0D unis per anh Mae wee By Part 82 fom ames supper he ates would ele, bt 6 percent Jahan cous woul nt Continue The vale predation con of Fst 542 swePIlperunit ast1 Mas nd abl obi Pat 52m a ube spp a it che pc of PAP he mony ages whch wl te silee ‘tween prchasing and mung Pat OS 2 a NE ants © Soon sso nie 2. Slog Company manne product wi nt vie ct of 50a ssl ss pote o FO Ped manus ere POE when 010 ns traced and a The canary hs + eine epoca {addtional 0 a ot Pen eng es Ta elon wall otal pent ee company a len cpacly proce ‘tonal as apace oh pal ler ul ea eo ‘Stowe ‘A Ieee wos ders by 1200. rome would nsec P1250 Income wes ices F100, tome wld Fa 2% Mabaconts Shop can make L000 nis ofa necesry component with tbe Ielowing cons Direct Maes Peon Diet aber "00 Vernblc Overhead 0 Freed Overhead ‘Toe company can purchase the 1{00 units externally for P0000. The svoklable fred cots ere FSOID if the ene ue perused external: An penance a Be Settee Sahat ne Sara saa rer = : tam eee $m %_Ambulong Company's unit cost of manaacuring nd slg given em aan Shay eo deny nea ats etn Drea ° ‘ara ceed : Foctoneet Hy Salingene verse a He 138 The company desires to seek an order or 5:00 uns fom a foreign customer ‘The vail sling expenes wl be reduced by 40%, but the fed cost for cltaining the order wil be 720000, Domest sas wil not be alfa by the free ‘he minimum breakeven pie pr unt be considered cn this special sles PT cre Pas DP a ‘A company can el al the wis team proc of either Prout Aor Product B but aot both Product Aas aunt contrbtion main of F36 and thes two ‘machine hors to make and Product 8 ase unt conto magi of PA {takes te machine hour o mal IF thee ae L000 machine hows eve facture a product come wil be 'Paan) mereif Product Ais made 400 more Product Bima C. P2000 if Product Ae ade D. thesameifeither producti made ‘Scarce Company hs been producing two pes of eng, Psi end Meta, forts own ase in the producon of ln reduc, The dat mpg es ‘bv rang fallow a ef Machine hous equted per ant Standard cost per unit Prima cont Pam P9009 Variable overhead” ‘a0 40 Fed overhead ap 65 Toul mp mas {Wanable manufacturing overhead sapped onthe bss of dtc bor hous. "Fue manulectring overheod is applied onthe ba of machine hours Scares anual reuirements for these bearings 6700 units of Plast and 1.00) tunis of Meta Recenly, Sara’ management decided to devote additonal machine hous oer product ines resuling to only 4800 nahin hos pet Year that can be dedicat to the production of the beatings An outside oonpay has ore to sll Sete the anal supp ofthe bets o prices of 71350 or Pati and P2750 for Meta.‘Scrce wank schedule te thrwioe ‘le $8,000 machine hour produce earings 0 Ute compar con nian scons (ae et bens) Scarce Company wil mindz net nai by ‘A. Purchtsing 700 units of Pte and manfactrng the remain bearings. 139|B. Purchasing 1,000 uns of Meta and manfcturing 700 uso Plas (&_Pschasing 600 units of Pls and manafacring he remaining PTE 6B) Parehasng 80m unto Mata na manafctring te Pemaing eng Sofi Company marwlacuree and sll FM rides. Iormation on last y's ‘pertor ales nd production of he 28 made fle “Sling pce "eo Coat per ant ‘Direct materi 2 Dire labor © Overhead 60% varbl) o Sling costs (0% variate a0 Producioninasis 19000 ‘Selina 950 At hs te (My 205), the 2009 models lend in production anit renders ‘he 2008 mode radio oblee A orig fm wing to paras he cso rodocs ata net pice of 710 each, Ite remaining 50 wats ofthe 108 mode adios acto be goa Uwough separ care, what the minor ce the Company would accept forthe radios? "P00 ‘c. Pm F180 Bre 27, Piramukan Company can make 1000 unis as neesery component with the folowing cost Direct teas Pes Direct Labor 16000 Find Ovechend| 7 ‘The company can purchase the 1000 units externally for PLOSOOD. An analysts shows that otis extemal pec, the company indent between making ot ‘ying the pare inamalan Company could avoid POG] in fod overhead ‘cate dit pres the components eaarely 1fCot minimization i te mar ‘omaderation and the company would prefer to buy the components what ste ‘maxim extemal prise that Piamkan Company would acept fo aie the ode extenaiy? 4% P0200 96000 Pom BP S500 a Tabargao Company is starting business and i unsure of whee to cs ‘Produ asembled or unssenbled, The unico of he urarembled prodact a ‘ao and Tatangno Company woul sl for 90. The cost to assemble the 140 ‘Prot etimoed at P18 pr uit nd Tabanga Company bln the msket ‘mould supports pceet PSone stenting en ‘Whats he caret dcon using thee or pocear uterdeson rae? ‘A Slltefore aster to compar willbe oy 8 per ent Satter asenly the company willbe tetera ty P26 prot G Pease es apa wie byt per Process further, the company wil te beter eff y 8 per un Sak of 50 units st 97:20 er untae mde monty The unt cost P30. {neremenal costs of P1.25 per unt frtber proces the usw eal he 7.000 nite eng sold for PAS each. Which coune of ston shone te ‘company ke? ‘8 Commit it resources to difecent product. By Silden canete onpition De further processing and wl the nit st P87 1. De rtherproctsng once ane half tuts Dalig Company produces « product that can be sold for 7250000 at an ‘murmedite stage Dali Aeses the product, they wil na P90 ok dona mnteril oss ae anater F500 i bran oven cant, Who filed, Dali wl be abe wo sl he product or 80,000. ‘Which of the folowing anaes score? Salnow ‘Bin the product becuse profit wilincease by 725,000 ash the product because pris wil nent by PL2S00 Fish the product bens profits wil incase by P1000 Paean Co «mmc nda components. One of ha products Sais aed ass subcomponent aut mamdncarng BKB The pec ‘Rela nana sue pore Selig pre Diet tere Diet iter ‘arable mansactsng overhead ned munatactrngowhand Verte shiping a hang astng wd daa = Bhoewadht Palocan is operting a fll capacity, that received a special, one ting, nde for “L000 KBE pars. “The next best alleratve use ofthe exces copy 10 reduce 46, esting ina contribution margin of PIODOD. Te minima poe thats acceptable for this e-tine spcia onder | at9 Pe cen Pw D. Pico 4 of PB por uit Dahiig Company tale «product for Pad with variable cost of Dahiigcouldscep a petal order for 1000 units at P84 1 abi acepled the oer, how many uss could tose a the regu price Hore the ‘eome wnwise? A 100 units so wis 3 "noone Osi es, Onetid of ‘ade Division of Dana Company produces hardened te ad. Oe the Blades Divisions output ol the Laven Products Division of Dana he emaindr i sold to onde cstomers. The Bade Divs’ xa ses ‘onda ors at forte faa ear ending ane 90am flo Tame Products oor Sas "sito m arb cont (00, eo ed cat ‘sam 0) ree erin Eo ison Cmte For “a The Lawn Freda Divson at an opartuniy prchn 0009 ena (galt blades roman ouside ropa aa cost of F.25 per set ena continng Rie asrume thatthe Blade Division cannot sll ny adtonal produ ubide customers ‘Should Dea allo ts Lawn Prods Divison to purchase the Dias from the tutide supplier and wy? ‘A Yes beens buying te bades would save Dana Compary FC 1B Novbncnuse making the lds would sve Dana Compary 71.202 Yer beonse buying the blades would save Dana Cosipany P2300, Bj Ne ees aint lds wove Dara Cpay 72500 CCalicants Shop can make 1000 units of ¢ necsary component with the {etowing cont Dies Mates Pesan Diet aber ion Varae Ovecad som Pied Overhead ? “The company can puschase the 100 arts eter for PIO600. None of aaa anf et overhead cont can be ede But arate product GAI'be Soade tut would incrsse profit contbuton by PI6000 if the GShiponent were acured exealyy Hf cost minanizaton i the major waa consent nthe company wou pero bythe compares what the ‘sina sterol price tut Cacao Cospuny woud wing fo sp sue te LOD enteral? A tes 00) ® paoow roi ALANGILAN Industies manuactrs a prodct with the folowing ets wwitat tic expected production 0000 wus Seana eset Pa Dictator rf Vasuble manafactaring overhead A ‘Fixed manufacturing ovehead ‘ The company bas the capacly to predic 49000 unt The produ sul sells for 0) A wholesaler as lferetopay Pt uni for 0b e fm wether te ht on opening wok boa P2000 increase (C. PAO mete ma Plot dace D. Pete ‘The Sm. Clara Company ase 5.00 uns of Par 0% each yea. The ext of smanufataring one wi Part 01 ahi vlune iss follows, Dirt matriale 50 Direc isbor a ‘Variable overhead io aed overhead a ‘Teal ae ‘An outside supper has offered sll ia. Car unlioed quai of Par 01 ata untcost of P77. 15ta. Clara acep ths tr can imate 50 percent of the fred costs asigned 10 pre SOL” Partarmor, the space devoid tht ‘marulactue of Part S01 wou be reted another company fo P00 pe yea. 11 5ta Cla acaps theo of the outside supp, anual profiel cease yy ‘A. P1300 9° P7250 & Pow Pizo Calero Manufacturing Company can make 100 unis of «necessary component past wth he following coat Dire Matsile Pso00 Direct Labor ‘300 ‘Variable Overhead 0900 ised Overhead 7000 143{Calero Manafctring the component exter, 722000 ‘cater ame geen seemless Steerecnennaendes ae 2 Picotto ‘Sr a is ‘Wawa Enterprises has the capacity to produce 10000 bearings, but operates at 50% of capacity. Bearings normaly sel fr PO each, and cost an average of 0 fo make, including a shave of the monthly fixed cos of P180000. Lito Corporation has offered to buy 1000 bearings at PA etch What isthe reevant cost pr anit? APD Pw @) P20 Dd. Pa Cota Company plas to discontinue a department that has consbution margin of P2i0,000 avd P4800 in fixed cot. OF te Red cost, PIO000 can be avoided. The effect of tus dacontinvance on Cut’ overall net opening eemeealtbeaeny ecrese of 30.000 B decreas of PIO. incense of 730,000 D. incense of 10,000 ae en ‘gen gente te clr ef Yet tr de snes Pon Sees te ananalenaar hoes Bou tacsarentnaifucienn na fea necammarue eee ‘segment revue geste i ive cos $itauee ae eelce Dao Corporation produces wo products rom joint proces. Infrmation about {he two ne products oles ie Product X Product Y Anspated production 2oDolks 4000 bs ‘Seling price per pound at spliff P30 Pls ‘Additonal procersing cor pound after spliff (ll variable) ms PO Selig prie/pound after further 3 ce / pos i i 144 han Co. mie dee pede, ld Ore ss or PUNO per {ashble cots are PEO pert and ed ming cnt a FOSS was corserng dropping the mining of Gold Ore, Grip oneal tthe Rood ares ar rect and woul be einicated i th segment as doped (Go Ore were dropped, net come fr Paphatan Co eal A. Increase by F2000000 nese by PL.200000 Decrease by 7200000 Decrease by P,200009 Bayanan Company normally produces and sells 30200 uns of E& cach month. #14 i small electrical lay wed in he etomotve nda ats arin various products. Te selling pie is P22 per unk varble cole Pe er un eed mars verheed costs otal PISO 00 per month an ed ‘selling os oa P3000 per month, Enploymentontict seks inthe companies that parce the bulk ofthe Bi ‘have caused Bayenan Companys sles fo temporal drop to ont 900 is per month, Bayanan Company estates tht the eikes wil st fr abut te ‘months, after mhich tne sales of 814 shoud rem fo normal. Due 0 the uren fv level of sles, bowever, Bayaran Company iting about desing down ss own plant daring the wo month ta theses ae on Bayan Company dots cose down its plant i estimated tat fed manartrng ‘overhead cost canbe raced to PHC 00 per month and hat Fed eling cont canbe reac by 10K. Start up costs atthe end ofthe shldown pred would {otal P00. Since Bayaran Conypany ae justin se producton method, no {inventories ae on band. ‘At what lve of unt sles forthe two month peiod should Beyanan Company boindilferent between erpoarly closing he pant or kecping open? us¢ 1990 Bsa @ nom Bas Conde Company plans to dconnue a segment with P2000 segment males ‘Sommen experces cae to the segment amounted 1 PA500, of wil 20000 cannot be eimiated fhe segment were closed. The fet of loving oven te segment on Gnde Conpanys before x prot would Be P1z000 decrease © Pinto incre P 7o00decreace D. P 7000increas [Bubid's Manufacturing Company can make 100 anita of necessary component part wit he folowing cons irc Matera Pang0o Direct Labor 130 ‘Variable vee 0900 Fed Overhead 27000 menage Company con purchase the component extemal fr 145000 and only Pao ote fed ot an be vce, whi the comet “rake orbuydeison? sean Boy and save Poo © Makeand save P2600 B. Buyand ave 720000 Malao Company maker bulsepllot scent according toa meditoal Oriental recipe which normally els at 09 pe st Nora von 10000 ‘unces per month Average cst Pd per ounce of which PDs dv materia and PIO is varble conversion cet The product is seal. Alter Jy, ‘ean for dus produt drops to 00 ounce monty In Novenber, Vere Co fers by 1.00 ounce for P0001 Malo aceopts the ore, emus design Pecillo Verde a cot of 500, Each abel wil cot P250o make and Wy. Mais should ‘cept he oder, ata gain of 5.250 Breet the oder ata ln of P8750 Cet th nda ales oF P3750 1D. accept the order sta gain of P1250 [SILO Company manufactures dletse carpenty tool, The production depertment had met all production requirement forthe cure mont and hes lan opportanity to produce aditoal unt of product with i exces capaci ‘Using price and nt cons for hee diferent il mols aro ols: HomeModel Dsluce Model Bro Model Sling price P58 Ps PaO 6 2, Direct ater 6 » % Direc abe (P10 per 0 2 tow) Variable overhad 8 2 6 Fhed ovetead % 5 Fa Varsblo overhead is applied on the bast of distor pesos, wile feed ‘overhead is applied onthe bass of machine hours There fsulficn! demand for the adaluena production of any mode! in Oe produ line, It hes excess ‘machine capacity but a led aacunt of labor tan, to which predict ot faces should ILO Company devotee exces peaducon? ‘ome mode, (C. Delse del Pro Model DL Equally Product A sel for P12 per unit adits variable cost pr ua P10. Prodsct B sels for PUB per unit and is vail cost per uns P12. The plat capacity i 350000 mactine hours and Product A vegies 48 nies tocomplet while ‘Product B requires 75 minutes. Which ofthe flovring wil provide he best sales ink of Product A and Prodac B asrunng the market maton of Product A 21,000 wits andthe marke imation of Product 250000 ura? 45875 us of Prodact A, 25000 uns of Product B 200000 uns of Prod A, 1520 un of Product 8 12,00 units of Predact A, 200.00 uns of Prod B 1. 20000 us of Product A, 23000 units of Product Isla Verde Company has only 25000 hours of machine tne each month fo ‘manufacture its two products Product X hea conbution margin of FSD and Product has a contribution marin of Pe, Product X requires 3 machine hous and Product Y hous. If lls Verde wants to dedicate S08 of is machine tare tote product tat wl provide the mor income ft wil have tol cntribution marginof A 7250000 c Patoom0 \@) Pon D. Fxoom Pit Company currently sel 00 units of product M for P2 ach. Variable cor sre PLSD. A dicount store hs offered PLTD per uit for 40 nie of product M ‘The managers bbeve that Wey accept te special order, they wil lose some sales at he regular prc. Determine the numberof they coal oe ele ‘he over become unprofitable OD unite © unite eourite B. Suni ‘MaabangPazang Company. crenty operating at los of P1500. The sles ‘manages has recived a special order For 5,000 wuts of product, which normally 7salle for FS per unit Costs associat with the rodct are: ditect material PS let nko, FI variable overhead, Tapped ned overbend. Pane vansble seling expenses, P2 The special der woul allow the ase ofa slighy Tower rade of rect tral thereby lowering the pce por nit by P30 and selling expenses would be decreased by PI I Mabuimng Pacang wants thi peu) oreo increase the toa nt income forthe fmf PON, wha sls price ‘mothe quoted foreach of th a8 us? ap 1G P2800 smo mus Rewabe Manufacturing sedules a weekly production of 1560 unt of Proc Mand 0000 wo wh P09 cmon vale out ve incared. These two produc cant sl si ot procose farther Tarte? reusing of ter product dow ot daly pedo sbequent het the jot produc Blow ae sen elon: MoM Unitseing price withoutfarher processing ms ory. Urst seling pice with fitter proctning ma PB. “Total separate weekly varabie cots cf further processing Pieoo00 Pxia0%0 ‘To saximize Borberate's manufacturing contsbution margin, the ttl separate avable cont of further processing shuld be neued ech eck ste ‘A. P105 000 Prono 8) Pr00c00 Pzi0000 5. Inteletl Co, recent recived an order fora product hat it doesnot normaly ‘produce. Since the company hat oxcees production capac, management fonidering accepting the order In euljzing the cecion, the sunt contol is compuling the relevant costo procul the order ‘The special ocder requires 1000 Hlograme of powdered Nitride, «solid chemical regulary used in the company’s products The caret sock of ‘Nitrocide 800 lilgrams ate kook valve of 8:10 per Kogan. I the special ‘order i accepted the frm wl be forced to restock powdered Nice eer an expected, atm priced cast of PB7D per kloram. Without the special order, the purchasing manage reds that the price wil be P830 when normal restocking takes plc. Ary order of he Nircide mut be in 8,00 klograms, Wat she relevant cost of pondered Niece tbe iced inthe spec ene aS om QO row i Peon D Psst0 8 ‘he Aleantara Company produce thre products wth the folowing costs en seling price A op ¢ Sang pce per uit Me pn Pa Varia cost pert 2 on @ (Contin margin per ait eo om ke Dirctiabor our per anit w 150 Machine hours perunit 6 2% 3s In what order should he thre products be produced if ther the det aber hours ‘or the machine hours ae tho companys production estan? Dinctlsborhous Machine hors @ see BGA BoA BCA © BGA ACB DO ARC ACB LM Electronics sth following standard cot andthe ata: Parties Pan Zew Direct materials Pao PROD Direct labor sa ‘00 Factory overhead om 200 ‘Unt standard cost Bim = rig ‘Unis meee per year ‘00 500 Machine ours pr unit in 2 Uniteostf purchased a0 Pisa Jn the past years, FLM has manufac all of is requed components however thio yess only 3OS00 hours of otherwise lle mackie tine can be devoted tothe production of components, Accordingly, some othe parts mut be purchased from ouside supplies. I producing the pars factory overeat applied at P10 per sundard tachi hot Fed copeiy cts that ll not be tied by any make-or-by decision epreent Of the apple ovehen, “The avaiable 30000 machine hous are to Be scheduled 50 that ELM reals rmaxirum potent cot savings. The relevant nk production css Hut shoud ‘econidered in he decision to schedule chine tie are: {Ph.D for Seta end PLW 00 for Zeta Pa fer Ben and 7127.0 for Zeta 00D for Beta and P1950 for Zeta 149®, opportunity aq methine one Banas Company has an o aque ane machine to replce ‘present machines, The ew machine would cst P30000, havea Senile tna estimated savage ale. Varibedperating cote would be P1000 per year The presen mactine ae a book va of POO00 and eraning He Ye, dos vero PS, ot K wuld He see ae 5 asible operating coats would be PI25000 per yee. ignore come tes, the years in toe what would be hs efernce in profit before tncome toes by acuring the new machines opposes t etaing he present ‘AY Pi0coo decrease Brisco destease PES incase at 00 nese Hiliop Fabricators, nc. etiutes tht 60.000 special components wil be wed in Shemenefcure spec sel Window or be whee ety. Newpet {rote a price of Pe per component Hllep peters to purchase 5,00 us pes ‘month, batt supplier could not gunranin ths delivery sched. Tn order © Tsu availabilty ofthe compen, Ftp consicerng the purchase oll ‘he 60.000 urs a tbe begining ofthe jeer. AeuningHiltop ean vest cashat 8%, the company’s opportunity cost of purchasing athe 6000 wrt at Se Cae. nam ® P1s00m D. 7354000 ‘The Capitol Site Corporation marufactares wo producte X and. Y. (Contbation margin per unit i determined a flows: ProdusX Product 70 PO Revenue Vari cate 2 Bs Conebtion margin Ea Be Total demand for Xs 16000 unis and for ¥ is 8000 unis. Machine hour isa seazce erource, 42000 machine hour are aval daring the ear. Predict X ‘egires 6 machine hous por unl wile product runes chine oe peru How many unt of Xand Y should Cepia Ste Corporation produce? Produc Prout x A Yea00 0 B "sow ‘000 70 ro @) tom 00 150 (0 Mary Manuactaring bas asembled the following. data pertaining to two a. opula product, Bande esicmicr Direct mates Pe a Dire inbor a E Factor overhead @ P16 pet hour 6 2 Cost purchased from an oseide supplier 39 o ‘Annual demand ans) 2200 300 Past experience has shown thatthe fxd mnufacturing overhead component fecaded inthe cost per machine hour average PID. Mary has polly of ing alse orders, evn itmeans purchasing uit fom oud mupplien. 150000 machine hours ae avalable, and Mary Mooulacuring desist follow {optional seategy, it shoud ‘A. produce 25,00 electri mises, are purchase al other nis as needed (E) produce 2100 benders and 1500 deci ers cn purse al other ‘ts as need C_prodace 20000 blenders and purchase ll other nts a needed DB. produce 25,00 sect miners ad purchase oll other nts as ended Damen Ca. is constering dspsing an equipment ht cots PSODE0 and has 10009 of eccumulated depreciation fo date: Daren Ca, cn al the equipment Ahuough broker for P2500 es 3% commision Aleratvely, Miron oy hat ‘offered to lease the equipment for fie year fra tol of M8750. Daren will incur epi, insurance, nd propry tx experts etn’ at PLO. At aoe ‘end, the equipments expeted to have no veka wae The nt diferent Income from the ease atest aso © sao 5m 3 Pnso Snow Clean Coren produces ling compounds and scans for induct and howehad Soe While med fie praca ce posed independently ew are etd. Gt 597 acon eng port win rany ‘dart ses, cons P poand © mae and sls or Pals foun saa orton of the annual predscion of is podact need or farther Frocesing inthe Mong Departnont whore conned with evel oar {Egreden ffm pate whch tured at lve plch edn fo Po) er jr This fete proening requ pownd fot 997 poe Coo of ‘ter ingredins, tor and wantble orci cnocied th th Rater xesng amount 10 FS perfor Varbl sling oe 9 pot te {Saar we mateo stp pod of elie pl, ot Ming Depertent nd cnt ould eave. Sow Co sted podction capac for Got, bu unlined demand ere ding pow de 151tobe sold ‘Whats the minimum mumber fare of ver posh at would have be 9 ste Saree oy js i 5 (68. Ponta Company seis product for PIB peru and the standard cost cad FF the product hows the allowing cost Drees ii P10 Dreet inter 200 (Ovarend (0% fe) im Tou ag ‘he product The only per unit. Pra Punts received a epeial onder for 1000 unis of ‘what would be the ‘citonal oot Puna would be foreign port tnx of thie t sll all of the current production domestaly, ‘mini sles rice hat Punt woul consider for this spec order? crv Pig PD DPn Question Nos 64 and 6 are based onthe following information: 1 Di Dison of Spon Spit Company rac hgh ty oat is hts don ety ptt 000 es oe le Unt : Direc ters ps0 Direct ior 2 vert 20% varie) 0 (tier information: ‘sae prt wo SGA cts (40% vara) Fa “The Dik Divison operating at a evel f 7040 chips per yeu Wit i the ‘Phssnam pice dur the dvs would conier en a “spel ord” of 1090 iss tobe distabuted through normal cannes? Pa ra orn Drs 65. anaming at hat he sk Divison producing end selingacapacy, What {Per ERI sting pte atte ven oul comer too “eps ‘hsr° a0 dips on th arabe prod coss woul be incare u A PIO Po Ben ) 152 Questions 6 though 7 are based othe fol ‘Aa Corman as singe prt ling pe Se enya ys on ai 62.050 CADS exh yore ac Pec ak tig pri of 2 peut any ea Ae ‘Dirt mater Dict itor P1090 Parte mamictring erin “50 Prod meifictring cored 2 Verne ling expres S00 Fae slg. in To ester nt, ip (The company has 1.000 CADS on hand tht have sme deformities and ee thecor rasan to be coun w be “recon” Due th ean tale ‘Impossible to sell these units at the normal price throt my gh er den, hte, What uso fg brdevartor tinge nse cog hte ; PR Os (8. Du to» srk in supplier’ plant, Adrenal Company is wae to purchase ‘oteainl fer be ptaiont CDS Tsoi eecet oases ‘an. Aol Coipany ls cough ntl Scones {1505 onal ia forte women Ie se a ed Oran css wonderin WON et nea el ee ‘ont pd eed seing esol ce ya ik Sok| | | eas cloud, How enh the advantage or disadvantage of closing the plant or ‘Beewomont ped? 2 Dbadvenge P164000 ‘Dinadntnge 2500 ‘Advanage P1500 7 An outdo manulactrer hat offered to produce CADS for Adrenal Compsry ttn we ship them ety to Adrenal costmers Adrenal Company cep {Gus er he faces at ur to produce CADS would be ile; however, fied overhond costs wou be reduced by 78% oftheir present ve, Sine he ‘ute manalctares ould pay forall he cet of ppg, he vara ing ‘ats woul be only twos of thet present emote Un cost ‘igure that clean! for compan to whatever quoted price recived este manufacture? ans crass B® pas D risa0 (Question Nos. 71 enough 76 ave based on the following: ‘Arai Siac operates sal machin spe. He manufactures o tnd proc enti rom many te ser mins end he es mats peso caste er 8 ‘emul! prpue eng cual come ements ee Gis Stnrt ‘sl ‘ls Tet Sale eugmo = son Loom Matra Pezmo0 = Fusaom | Ps000 ter ‘amo suo Smo00 Daprection sow 7200 138000 Pomer 1000 3000 22,000 ian 000 21000 10.000 ‘it nd ght 12000 2000 14,000 Otter hom = shoo _36.009 Tet Fimo = =u = naw rome ziwas = Fam Pom "re derecition targa fr machines sn th repctie prods in. Th over charge ‘sapped Oh tat of per cnc The re fre bln pce hes |e oa for 10 grr L400 po rar. Tern ate it repped © he pac lira om und of in pee ep Al other Ct a EN espns “ene the racine caring fem ‘tad ton pt cto MS mani 500 pi ai ie Spa ogo cy ed eal hn pce se IE Ret on repel a i 154 pt of is standard pot! by abut anc half fo ne yer while pong the speily Tere caso part Te caso swing to pl PAD foro part Te maa ia al tut 240 por tt and rl P78 per ant. Mr Syl hae fo nd P00 Goreme din bse Hose whet betes ‘7. Wats the increment costo especial nde of 500 uns? x recon So @) rete D. earian 72 What's the fll costo hospi oder? Ao v0 ‘© Peaipo Pasa B) Pei000 73. Theamountof opportunity cortfteking Ue special orders ‘a. pisso00 © Fsoi00 &) Prom D. Praca 7A, Whatistheffecton the over prot fh special order acta? Ao Pas0000. <0) & mss Orson ‘Question No. 75 trough 79 are based onthe flowing: Te Vote Corton, sich roc nd leigh sc i of ome ens i phat od ntfs wae oe Sear Amt rer e mpey rte pico fel od os Ped Sept ‘ere tr cil prot eh en dee. Hour Be ron fh omer pnt Vere cnt ha esl ot cre fener n'y I be ohck 8s moe hoe ‘Spoil ed pe ar ptt aed Ca) ym ew We ip he. Te ron Bt a so Pp as se tyne salto fet Sarge ll ed pot he aaa itn fet Sar at ay Be lat le a compos ps feds tye arco pron 20020 fof np he nde ie, ‘eng pte ie lego ‘itn 20 pore Dict matrie ‘S00per bor ‘ot cord 450 per x Toul Bisex Vera has epprochd a cosmetics mamufcture oss he erty of pursing he (ube fr Chap The archaic of th empty bs fom Be cots marr cal 155inet 10 p24 abs. If Vera Copoton sap te pure prope tt md el oc ed 50 re aa sa tayo 7m yg rote cuet APIO P50 Bis 200 7% Whats the material cost per box of Chaps saved by purchasing ther? A F300 Pe 3. rao P30 77, How much woul itcost Vertatin to produce the tubes per box? A Pe cP % rs D. Pim 78, How much cost would Verba incur by making 125000 boxes, assuming tat ‘ional equipment at an erewal renal of PLDIQOI0, nut be acquired to produce thi volume? 10.525,600 c Puzs0q00 | P11625,000 D. mizs0om0 Cee eceneeh Piece Eamryaee } Emighes Samah Question Nos. 80 throng 86 are based on the foloning Metical Surly Company produced hyde Hi that wee need by Hp to mote Bedriden pts. The et of manafcuring and mare ric hs he compen normal ture of 3000 oats per moth ae sho lew: Unt mgecturing cose: Diet materia 580 Direct lator 25 arable sere a0 Ficd werent 60 Pass nit martng conts: Varehie os Pad m sos otal nt cote Bisa 156 ‘nts aorta pesto ty £9. hate non beakeven ai for Maia Suply Cnpey? 1382 © 1,950 if 205 D. dete 2 Market esearch estinates hat volume could be increased 350 und, which well within host preduction capac lintaton, ifthe pre wen cence, ‘A250 to F480 per unt Assaming the carter pens hope by tn inn the cost schedules correct, would you recommend tha ees een ‘AL Yes because the profit wl incease by PLSOO RE. Me acest atewaincenedy Pao, No, cause the profit wil decrease by Potten, ‘DL No, becuse the profit wil decease by P2 00000, (On March, controler i made to Masia! Sopriy Company by the Veterans’ Hospital to supply 500 units for delivery by Mach Si. Renae of oy anusually lage number of rush orders fom the regular euromers Medal ‘Supp plans to prodace 00 rats during March, which wil eal sadn ‘apa. the Veterans’ Hospital's orders accepte, S00 emis novell cold & regular customers would be lost a compestar The contact gies by he Hospital would reimburse the Vetrane” Hsp’ share’ of Nah manufacturing costs, pls pay a fxd foe (pro) of FZ,000 Thane would be ‘no variable markting cor incrred onthe hospi’ uit) Wat enact would sceptng the Veterans’ Hosp contact have on Match nome? APY 850000) © Pussonm| @) ¥ or50, DP soon Metical Supply Company has n oppor oer fren mathe in whch ce ompenton tee An athcion ff ure sat one fers is grates when demand the domes marc gute lane producto faces could be sed witht cing doses bnew Axed ig ose rnc this marke. Shipping coos fr tore wil amma to PND pr toa eons fobtng he contact nace) wl be F200. Nother ‘ible mateting cos wosld be rogue tn ha Ser Donestc business ould be uated by this oder st xis ct pre sheld Medal Supply Company cones for Oo e10 crs? nar P27 pao a0 1874 An inventory of 230 unis of an ebslte model of the ost remains in the ‘gockrom. These mast be sld tough eg hanes a reduced pies oF {hein wll ran he vel Wha te cet ld Be sepub i eling Bese unis? A hiss c mois 3 Ro orm #5 A propo is recived rom an ouside conor wh wil ake on hip 1.00 dali hlt us per month drt te Maciel Supply's casters ode sremseved fom Metal Suppyssslae tal, Medel capplys nad keting oo mould be urallcted ut Hs varble mart its would be ety 20 erent for these 1000 units produced bythe centro, Medical Supply's pant ‘would operate at two thids of nermal evel and to allcnied fed ‘mancfacturng certs would be ct by 30 percent Whet thous unit cst shou be used to compare with th quotation eve rom he sep? Resto 6 P aaa 300 P Rast $6. Assume the sume facts atin roquzemert No, 00 exept hat the il facies geld be used to produce 809 modded mre hasts pr month for se iA espa operating roms These madi! hss could besa for P40 sacs {ht the variblemanufacuring cons of production woul be P302% pani Vavable mackong cons would be PSH pee um Fad markets 2350 ‘CP 5am $ Mecia Supply sould be wiling py the ould onc P30 D Pao Question Nos 87 and 8 are bce on the following: Mar Fir nc pis Be mactrng of pte Bat company sen ny pact sack seni, ny ond afore seo ee Sls 17 on en ny oa BE ee andro oaen end ep owed ne hoes ae 188 radu. The conrad hat in xt of 725 po ae ar at ly Be In rer to pare the bid for the 809000 Wark, Andres Light, est unt, he sag norton ha ti at ase tye recon of eH Dc al P Lsper punto Diner 2 Zo0perbxr Dee maine ct? ‘rnooper toe Vanaticsoroat P00 pr dt torr Eacnheal aon pr dnt tr hur Ineo renee cit Poster 100 bees “ele Psd bt Freel 6 pa pr et Pron soniye ou . Beto tre woe 17, The miimum price per blanket that Marcas Fibers, Ine, could bd without ang the company set income is Pao 8. Using the flat cetera and Un asim allowable etm specied, Marcus Fey id pie pr Hankel would be: fe © ras00 és oe c yso5 D. Pas 159