The steps (in order) in the disruptive innovation cycle is _______

Imperial Jewelers manufactures and sells a gold bracelet for $403.00. The company’s accounting system says that the unit product

AysviL [449]

Answer:

a) Financial advantage  $2,208 

b) The company should accept the special order, as it will increase its profit by $2,208

Explanation:

The relevant costs for decision to accept the special order are

I Incremental Revenue from the special order

2. incremental variable cost

3. The cost of the special tool

Unit variable cost = 143 + 90 + 8 + 7 = $240

Note that that the increase in material cost of $8 and the variable manufacturing overhead of $7 are relevant to the special order decision. Hence they are added.

And the balance of manufacturing overhead would be incurred either way. Therefore , they are not relevant for the decision

$

Sales revenue from special order

(22× $361.00) 7942

Variable cost of special order

(22× $240 ) (5280 )

Cost of special tool (454)

Financial advantage  2,208 

The company should accept the special order, as it will increase its profit by $2,208

3 0

2 years ago

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,200 units)

Semmy [17]

Answer:

Option A,$257,732 is correct

Explanation:

The computation of income from operations requires that the operating expenses(variable operating expenses and fixed operating expenses) be deducted in the current period as against charging a portion to closing inventory as it is obtainable under the absorption costing method:

Direct materials $180,100

Direct labor $238,100

Variable factory overhead $261,800

Total prime costs $680,000

Less closing stock(1900*$680,000/18200) ($70,989)

Costs of good sold $609,011

add:operating expenses:

variable operating expenses $126,500

Fixed operating expenses $49,900

Fixed factory overhead $97,900

Total expenses $883,311

income from operations=sales-total expenses

=$1,141,000-$883,311=$257,689

The $257,689 is closest to option A,$257,732 the difference could be due to rounding error

4 0

2 years ago

There are 20 automatic turning machines in the lathe department. Batches of parts are machined in the department. Each batch con

Semmy [17]

Answer:

The capacity of the lathe department is 3200 parts/week. The workers capacity is the bottleneck.

Explanation:

In this case we have to compare the machine capacity and the worker capacity, and detecting shich one is limitating the capacity of the department.

Machine capacity

The time it takes for a machine to process a batch is

$Time_{batch}=T_{setup} + T_{machining}=5+(9/60)*100=5+15=20 h$

In 40-hour week, every machine can process 2 batches/week.

With 20 machines, the capacity of the department is 2*20=40 batch/week (4000 pcs/week).

Workers capacity

With 40-hour week and 5-hours setup, every worker can make (40/5)=8 setups a week.

If the department has 4 workers, the amount of setups that can be done is 4*8=32 setups/week. That means that only 32 batches can be processed per week (3200 pcs/week).

The workers resource is the limitating capacity, and therefore the capacity of the lathe department.

5 0

2 years ago

The following events took place at a manufacturing company for the current year:(1) Purchased $95,000 in direct materials.(2) In

Rom4ik [11]

Answer:

D $88410

Explanation:

Work in progress includes all the raw materials, direct labour and conversion costs incurred so far excluding cost of goods sold .

WIP= Intial WIP +Manufacturing costs incurred- Cost of goods sold.

The WIP inventory at the begining of the period is given as nil.

WIP during the period = (95000*80%)+56000+13600+107000

=252600(but it was given that 65% of the Process was completedi.e., finished goodswhich are not the part of the WIP inventory ; hence the remaining 35% is the Work in process inventory)

=$ 88410.

Further the remaining raw material 20% = 95000*20% shall not comprise a part of the WIP as it has not been brought into process itself , it shall lie in raw materials inventory itself.It shall be counted into the WIP once it is brought into the manufacturing assembly line.

3 0

3 years ago

Read 2 more answers

A classmate excitedly tells you of what he believes to be a good deal. He goes on and on about signing up for a free 30-day tria

Nikitich [7]

Answer:

reciprocity principle

Explanation:

A reciprocity principle is a form of socio-psychological principle in which individuals generally tend to pay back in good, and in any form of capacity for whatever favor they receive.

Hence, in this case, the music company is hoping the the "reciprocity principle" will work on consumers that subscribe to free music as they might wish to give back to the company based on consumers feeling indebted to them for all the free music that was streamed

8 0

2 years ago

The steps (in order) in the disruptive innovation cycle is ________. select one: