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Radar Company sells bikes for $380 each. The company currently sells 4,350 blkes per year and could make as many as 5,000 blkes per year. The bikes cost $240 each to make: $160 In varlable costs per blke and $80 of fixed costs per blke. Radar recelved an offer from a potential customer who wants to buy 850 blkes for $330 each. Incremental fixed costs to make this order are $44,000. No other costs will change If this order Is accepted. Compute Radars additional Income (Ignore taxes) If It accepts thls order. Incremental Amount par FixedIncoma from New cremental Incremental Unit Costs Business Contribution margin Incremental income (lo The companyRequired Information The following information appliles to the questlons displayed below] Suresh Co. expects Its five departments to yleld the following Income for next year. Dept. M Dept. Dept. Dept. P $58,000 $44,000 Dept. T Total $234, 000 ales $65,000 37,000 $ 30, 000 $126, 000 $112, 600 10,800 52, 600 63,400 s 1,600 37, 600 13,B00 51,400 $(14, 400) 15, 000 30, 600 45, 600 $30, 600 $1, 600) 23,000 4, 400 ,400 39, 600 11, 200 50,800 $(20,800) 238, 600 Total expenses Net income (l0ss) (4, 600) Recompute and prepare the departmental Income statements Including a comblned total column) for the company under each of the following separate scenarlos. (1) Management elilminates departments with expected net losses. RTMENTS WITH EXPEC SSES ELIMIN Dept. M Dept. N Dept. O Dept. P Dept. T Total Sales Avoidable Unavoidable Total expenses Net income (loss)Required Information The following information appliles to the questlons displayed below] Suresh Co. expects Its five departments to yleld the following Income for next year. Dept. M Dept. Dept. Dept. P $58,000 $44,000 Dept. T $ 30, 000 Total $234, 000 $65,000 37,000 $126, 000 $112, 600 10,800 52, 600 63,400 $ 1,600 37, 600 13,800 51,400 $(14, 400) 23,000 4, 400 2,400 $30, 600 15,000 0, 600 45, 600 39, 600 11,200 Total expenses Net income (l0ss) 238, 600 eO $ (20,800) $1, 600) (4, 600) Recompute and prepare the departmental Income statements Including a comblned total column) for the company under each of the following separate scenarlos. (2) Management ellminates departments with sales dollars that are less than avoldable expenses. RTMENTS WITH HAN AVo Dept. M Dept. N Dept. O Dept. P Dept. T Total Sales Avoidable Unavoidable Total expenses Net income (loss)Xinhong Company Is consldering replacing one of lts manufacturing machines. The machine has a book value of $40,000 and a remalning useful life of 5 years, at whlch time lts salvage value will be zero. It has a current market value of $50,000. Varlable manufacturing costs are $33.600 per year for this machine. Information on two alternatlve replacement machines follows. Alternative à 22, 300 Alternative B $111,000 10, 600 Cost Variable manufacturing costs per year $118,000 Calculate the total change in net income if Alternative A·BIs adopted. Should XInhong keep or replace its manufacturing machine? the machlne should be replaced, which alternative new machine should XInhong purchase? Complete this question by entering your answers in the tabs below. Alternative A Alternative B Xinhong Calculate the total change in net income if Alternative A is adopted. (Cash outflows should be indicated by a minus sign.) RNATIVE A: INCREASE OR (DECREASE) IN NET INCOME Reduction in variable manufacturing costs Total change in net income Alternative A Alternative B >XInhong Company Is consldering replacing one of Its manufacturing machlnes. The machlne has a book value of $40,000 and a remalning useful Iife of 5 years, at which time its salvage value will be zero. It has a current market value of $50.000. Varlable manufacturing costs are $33,600 per year for this machine. Information on two alternative replacement machlnes follows. Alternative A 22,300 Alternative B $111,000 10, 600 Cost $118, 000 Variable nanufacturing costs per year Calculate the total change In net Income if Alternative A, B Is adopted. Should XInhong keep or replace ts manufacturing machine? If the machine should be replaced, which alternatlve new machine should XInhong purchase? Complete this question by entering your answers in the tabs below. Xinhong Purchsse Calculate the total change in net income if Alternative B is adopted. (Cash outflows should be indicated by a minus sign.) CREA Cost to buy new machine Cash received to trade in old machine Reduction in variable manufacturing costs Total change in net income Alternative A Xinhong Purchase>Xinhong Company is considering replacing one of lts manufacturing machlnes. The machlne has a book value of $40,000 and a remalning useful lfe of 5 years, at which time its salvage value will be zero. It has a current market value of $50,000. Varlable manufacturing costs are $33,600 per year for this machlne. Information on two alternative replacement machlnes follows. Cost Variable manufacturing costs per year Alternative à $118,000 Alternative B $111,000 10, 600 Calculate the total change in net Income If Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine? lf the machine should be replaced, which alternative new machine should XInhong purchase? Complete this question by entering your answers in the tabs below. Alternative A Alternative B Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase? Which option should Xinhong choose? Alternative B inhong Purchase

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Answer #1

Multiple questions posted and as per HomeworkLib policy i am solving first one
Incremental ncome from new busines Incremental Incremental amount per unit [fixed costs Sales Variable costs Contribution margin Fixed costs Incremental income(loss) company should 330 160 170 280,500 136,000 144,500 44,000 100,500 44,000 accept the order Incremental amount per unit Incremental fixed costsIncremental income from new busines 330 160 2 Sales 3 Variable costs 4 Contribution margin 5 Fixed costs 6 Incremental income(loss 7 company should 850 B2 -850ВЗ D2-D3 -C5 D4-D5 accept the order B2-B3 44000

As we can see there is increase in incremental income we should accept the order

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