Suppose DeGraw Corporation, a U.S. exporter, sold a solar heating station to a Japanese customer at a price of 130.5 million yen
1 answer:
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Answer:
<h2>a. Traditional Cost</h2>Product 540X
= Revenue - Cost
= 200,000 - 53,000
=$147,000
Product 137Y
= 162,000 - 48,000
= $114,000
Product 249S
= 92,000 - 25,000
= $67,000
<h2>B. ABC Costing</h2>Product 540X
= Revenue - Cost
= 200,000 - 47,100
=$152,900
Product 137Y
= 162,000 - 29,000
= $133,000
Product 249S
= 92,000 - 49,900
= $42,100
c.
Difference in Income for 540X
= 4.01%
Difference in Income for 137Y
= 16.67%
Difference in Income for 249S
= -37.16%