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12:29 & AMP 62 0 .65% Business Course My Subscriptions Prepare an analysis showing whether Jensen should process the assembli

12:28 & GP 62 .65% Business Course Sell or Process Further Jensen Manufacturing Company makes a partially completed assembly


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Answer #1

Please Find below table useful to compute desired results: -

А D 40 B C D 1 Using capacity =70/100 =100/100 Differential 2 Units sold 46000 3 Selling price =C3-B3 Revenue =D3*B2 4 Direct

F А 1 Using capacity 2 Units sold 3 Selling price 4 Direct Material 5 Direct Labor 6 Variable Manufacturing Overheads 7 Fixed

End result is positive therefore he should process the assemblies further

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