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3 years ago

Speedy Bikes could sell its bicycles to retailers either assembled or unassembled.

Business

1 answer:

Feliz [49]3 years ago

7 0

Answer:

Speedy Bikes

a. Incremental Analysis for the sell-or-process-further decision:

Cost of an Cost an Difference

unassembled bike assembled bike

Alternative 1 Alternative 2 Increment

Sales price of unassembled bike $450 $495 $45

Manufacturing cost per unit $290 $312 (22)

Net operating income $160 $183 $23

b. Speedy should process the bikes further.

c. It will generate an incremental net operating income of $23 per bike.

Explanation:

a) Data and Calculations:

Cost of an Cost an

unassembled bike assembled bike

Direct materials $150 $155

Direct labor 70 80

Variable overhead (70% of direct labor) 49 56 ($80 * 70%)

Fixed overhead (30% of direct labor) 21 21

Manufacturing cost per unit $290 $312

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noname [10]

Answer:

D) None of the above is included in Japanese GDP.

Explanation:

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3 years ago

A company's relevant range of production is 10,000 to 15,000 units. When it produces and sells 12,000 units, its unit costs are

DENIUS [597]

Answer:

Total indirect manufacturing cost= $75,450

Explanation:

Giving the following information:

12,000 units:

Variable manufacturing overhead $ 1.50

Fixed manufacturing overhead $ 5.00

<u>First, we need to calculate the total fixed manufacturing overhead:</u>

Total fixed overhead= 5*12,000= $60,000

<u>Now, for 10,300 units:</u>

Total indirect manufacturing cost= 60,000 + 10,300*1.5

Total indirect manufacturing cost= $75,450

7 0

3 years ago

Kraus Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots from the Casting Department are

ludmilkaskok [199]

Answer:

The units started and completed is 59,900 tons

Explanation:

The computation of the number of tons started and completed during October is shown below:

Units Completed = Beginning Work in Process Units Completed + Units started and Completed

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So, the units started and completed is

= 74,900 tons - 15,000 tons

= 59,900 tons

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3 years ago

A company has sales of $640,000, net profit after taxes of $23,000, a total asset turnover of 4. 17 and an equity multiplier of

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Return on assets is calculated as Net Profit After Taxes by Asset Turnover and Sales multiplied by $100$ . For example, Return on Assets is $ $23,000*2.5$ by $640000*100$ Return on Assets is $ $57,500/640000*100$ Return