26 INCREMENTAL ANALYSIS ps5 0S eediced foture cose and revenue ata that will difer ssvong sterasive cour, 1. FFecuom are known as a information = garding, the decision contexs.- ich she relevant information is developed and 1D. Compace the ale Which ofthe following best describes a relevant informat A Focused on the past. and consideration. B, Focused on the past and not —C Foawed on the func consideration. = 1D. Focused on the future and not related to the decision under consideration. 0 the decision under consideration, rs beiween the alcernadves unde 5. major accounting contributior ‘valuing posible courses of actor ‘AL assign responsibility for the deci —B. provide relevanit revenue and cost data about each course of action © determine the amount of money that should be spent on projec, the managetal deision-meking proces e 2476. atl ‘ o~ 14, _Sensitivey analysis is usefil in decision | these aims. Assume that these are murualy xdsive sem pocssine fone dt shee mally cd shorives var only 1 bath Ato Division and Property Division aematives , mute Auto Division nor Propety Division senate: all coe har would be incared C. pusteoss that are expend D) snvcipsted fara cost hat “Which of the following is (are) 2 true satemen( bear cose behavior in incremental anlyis? Fixed cost wll aot change betwen aerate. = As thereisa degree of uncerainy abo D. the analysis is subject to review by the management To determine the posible ouxme in 2 decision analysis in case a key: prediction or assumption proves be wrong, managers will se: AW sensitiviy analysis — B. tocal analysis wistiha, 249on cd, Wott ae company fogs by owing = pr couse _p, essthat were incurred prio en making decision = cal venue oc = a ROTgBeencein core beeween ows decisions. A consi bused on corapeteeinfanes Ei evi oe din hls fom potnta aer= 6, dhedlctencebecwesn aling rice and varices con peoducss chat can be manubocrared ix 5, Manufacturing the parts inccenally by company cass Wetec in che doesn 22 [piihecompary to be dependene upon supple orcney dvr of pace A equality of he pars tobe unr the conl ee company ts firure only of C, lower cost of production of the pans beng asured 1D. a company’s operations co be more ecient than when the pars te purchase From supeties 2 of buy decison, when ae fixed cst relevant? ‘hey ifr among altematies ~ 38 determined withour clesly amining ach port ff esaking & component por in a farery with eveese cCompany a manufacturer of lamp, ud its a ‘une forthe year. Vor manuf luences on pricing competitors, 30 os. — ‘cuomer, nd campers D. azz acnuning, 44, Baas Co, ha cnsideable excess manufacturing capacity. A pei jb one's corset ncades the fllowing applied manulacring ovetead cos: wi 258 ey axtuha Pa ey“The San Pascual Company mansfsesures Pare No. 498 for se i i gel. The cost per une if 20,000 units of PartNo. 498 are manufactured areas prodvction accepts Sta ‘oually eliminated. Furchermore, San Pascual hae determined thatthe reas} 2a i aNom, onc “The unit cost to manutserare P 1000 EBS 12 Balgus & Carspany cxpoat to roduc elf 12,00 wait: paciy Dans ac 190,000 accepting che order will increase Diese 120,000 A. loss by P225, sible 60,000 BL loss by P375, Fed ovchend 30000 fa”quinn Coopesive! Tne produces 1,000 ani of Parr M per month, The rufactuing costs of the part are as follows: Tae ea matcals Proc 5.000 5000 30000 Bow ucide plier has offeced to supply che pare at P30 per unit ‘that 20% of the sna overhead bet E jnwrese Dy incense by P20,000 16. The lowing company’s monthly unit coms 9 manuFiccue nd may, ves podict io : fou (Gols, The budgred costs per unic based on 20,000 sis ae: ‘Semele 2.00 ‘rc aa Pes Drea bor 240. 400 Vor nde Teo Fed indie 100 Mathrng Coss: Veale 250 Fad 130 “The conpany mist dee to comsinue making the product or buy ie fom ap at ofeed eo make che product at aleve of press Fed markering come would te Ufa, ba vce maleing cons would continue at 30% if de “amp wee ep the propos te imam amoung uni hac the company can pay che suppl deceaing opening nce? Doers 4eer as 764.000 rebor 16000 ic Ohl 81000 ars aa, Te cee se ws that st excl rally fr P104,000, The uct company that cureney manu month fr fy “Ambulong Companys uni cst of manufactuing and sling a given item a an ‘eivirylvel of 10,000 units per month are: P39 cain Part Q542 frm an outside supper a 6 , the mandy sage at which wl be indie 8 ing Pare Q542 8 Furdoveimad 9 Sling expenses ‘Varable 30 _ as ajoi ComPANY manufacrures and sell FM sadios. Infonnation on ltt year's atom (ales and production of the 2008 modal flows oe bem tts Slee i endiagupherhueelngpign tte ing a coe Na cor ae ee Ra bins aed ec ie bape: ty J on the bts of machine hue inimsian Company can make 1000 uns of «seep cmaponent wi the 2. Blowing sn she begs 7.000 unis y Sace' managerent decd Diner Mails 64,000 A coodes an mang al Dirt bee 16000 ed the production of he Marable Overhead 8000 Serres Ped Owthead : (eal, Sert wats © we reduce bearings tha de “The company can purchase the 1,000 unis exemally fr P1040, An compen minnie sas (sin se ei) aoapas ot chat otis exe pron the cong : ee tmukog or buying the put Pinarlan Company coe Scace Conpny wil nine ise bee ee Se a cig he emis pees teat = wiht is dhe maevar external pice tar Proumalan Company would srg Pucg 1,000 wns of Mel and, manufacturing 7,000 unis of Pas Pcing 6000 ona of Mic and manuficuring cong =D, Paring 5000 sof Meat and anutcuing dh °2. ‘tea Company igh ad issue frost sented os ane. Tew con fe or off by PS per unis. made monthly. The unis vo Farther process the uni components. One of thee manulaceuring is KBO9. Thi Should Dane allow i the outside suppl 4 P40 and Tabangso would slic for P90, The com ot accep for this one-seae pec onder is ‘supplier at a cost of PLS per unit on a the Blade Division cannot wel any aon Lawn Products Division wo purchase the blades from and why? AL Yes, because buying the blades would save Dana Company P500. B, No, because making the blades would save Dana Com} C._Yes, beeguse buying the blades would save Dana Comps . No, because making the blades would save Dana Company 2m‘buy che moe wa iy she compre, ‘Company would be wi en 50, Cas Company uses 5,000 unis of Par S01 each year The cost of so Menge anit Pee 501 a hs ohume i fw. "pies me Paso ise ste 350 ‘Yuba 130 If Calero. Manufacturing Company purchases the comgonsar_exenaly 70,000 of the Fixed costs can be avoided. Ax what exera price forthe 100, the company indifferent berween making or buying? ‘Corporation has offered to buy 1,000 bearings ax P40 eachque eve © manure an unfihed ui is HO (230 vile 1 ‘nis D0. The compu hs nae elvan com per unit? io 000 . Deceze by P1.200,000, ‘ayanan Company normally produces and moms EL i a small electrical relay used in the ig costs rota! P30,000 per mouth. jenc-contract strikes in the companies tac purchase the bulk ofthe pany’ sles o temporarily drop to only 9.000, ProdugX — rodua¥ 1» Company estimates tha che ses wil lst for Tithe 4.000 eg | Oe lied sles, however, Bayanan Company is hiking about PIs closing dow its own plane during zhe two months thatthe sik ae on TF Bayanan Company does cose down ics plane, ic is eximural tht fixed Po smanufscsuring overhead costs can be reduced to P105,000 per wond and that Dao caren sls both producs ion which mamas profi, profi. shutdown period would roral time production method, no inventories are on hand, a ™ _ «al‘Ar wha evel of une sale fr the ewo-enonth period shouts eines between esnpocarily dong the plan or keepin tm discominue 2 segment with 2 P3200 my, ~ xemene anode © Segment were closed. The ‘Conde Company's before cx profi would % o can make 100 unite of © recy 1F Bibs Menutacrring Company cn purchase che component externa 145000 and only 74.000 ofc fixe cons can be avoided, what i the cones BL Buy and save P8000 CMake and eve 720,000 D. Buy and eve 720,000, i eer Cote mae Seen mica oeer andre signe ne De ocr ace SaaS gamle ian eenmeee well 25 0 ae nd apply. Mao head nf P9.000- ack Ga * onde, 3 los of F23,750 * Gece ode ae gain of P11 250 o 10 Company mamfacure clecnic carpentry tcl, The poucton tent bad met all production reutement forthe cunent on nt opportunity © produce addivional units of produce with is ers eg. Uni seling pce and wait ons for thee diene ell mol fol Home Model Deluxe Model Pro Model 38 P65 Ps 20 9 8 » 8 2 i 16 5 15 pera, wile et cers deren 8 Pro Model Dele model D. Bgualy Produce A sell fo sll for PIS per unie and ies variable cost per unie ir P12. The plane capaciy is 350,000 machine hours and Product A requires 48 minutes to comple while Product B requires 75 minutes, Which of the following will provide the best sles mix of Product A and Product B assuming the market limitstion of Product Ais 200,000 units and the matker limication of Product B is 250,000, ‘A. 46,875 units of Product A. 250,000 unies of Product B B, 200,000 unite of Produce A, 152,000 units of Product B C. 152,000 units of Produce A, 200,000 units of Product B D. 100,000 units of Product A. 250,000 unies of Product B > a a7cof father po A. P 8,700 B. P 3,300 ¢ P1030 D. 43,500 selling prices: 4 em pac cane diocese Fret Sanh tea an * prods doesnot delay dhe production of subseg tribution margin per unit batches hea prada. low ee some the information: oats i = a ° _gqwsinine Beer's manuicrtingconutbution mat ing thar shouldbe incered each week re al separate What ie the relevant cose of posrdered Nirocide tobe included in the speci onder The Aleantara Company produces dhe produc with the following cost andSite Conporstion manufrenres two products: X and ¥. margin per unis determined as flows: requ compoaen ke machine det en ta ae py ELM og acu a Revenue Vatable cose Contbtion margin Product X requires 6 machine houss per unit while product Y vegies ‘machine hours per unit. ‘How many units of X and Y should Capital ite Corporation produce? 7. Produce X Product le operating A T6000 10 I . B “8.000 000 c 7.000 “9 DB. Sp00 5000 00,000 per yet. The present machine has 2 if of5 years. Is dsp value now i P da ° a =im i Ni ie Sp pt jac working es epaciy aad would hae ga 9 tome he be, eae ens nm re ay ed Je bt a of sary ab on el roar he dag Quation Nox. 75 through 79 are based om she following: Tse Verbatim Corporation, which produces and sl to wholesale a high suc ine funmer lions and inseerrepellenss, bas decided wo divenify im der sbi sal sorcerer forthe company conde iste precio of pil nen ora 10 prevent dry and chapped skin. Mer cnsiderable research, a special product line bas been descloped. However, base of sh comzrvatom of the company mansgemens, Verbatim’s president as decided v2 ‘on amount of floorspace voruped. Al he produc line incurring them. oning eet se ard production oe tering periment hs deep Dit ir 7200 pr box Dower mater 300 pe boe Tourer 150 per box Peal ESO per box bi ere a commis manaficre 0 dca the posi fpr roc be Oa Th parca pit ofthe epee fom he ocr meee 1c 180 pr 4 rab Ife VrbzieCorprtion sce the Phas pga” (Conse sar nt lid end waibl rhea cnt would be Ped by Tag ‘oer mari on would be eae 20% le overhead ate per box of Chaps? 200 athe maerl cos per box of Chap saved by purchasing hem? 00 17. Howach wuld i cot Verbatim to produce the eubes per box? qed at would Verbatim incr by making 25.00 bas, ring io" a oglpment. stan anal tem of P0600, mas te a duce his are? sat 5.900 - 00 se ro uo, ar npc tp Ven Reet usin 80 gh 5 er han fling ri Comey Prod Ibs ter we hpi oe oa a it te oe eT (ile nt ine of en ree ae conor wipe 50 et eat S iy 1S nes “eee Zn Tos it costs E500 cei ste asue there ina conection btuten te sain dred in Meso acho be reed independent Onda tere ted trang pub L356 pr anit shouldbe astomed. Ignore come txts and oer Cs haat Sorted i he cot schedule or tn question tele {0 Whacis the monthly breakeven units for Medical Supply Company? A 1,882 B 2,689 1,950 D. 2614 289