Question

This is all the information provided.
E19-22 (similar to) TechnoPrint manufactures and sells 15,000 Ngh-technology printing presses each year. The variable and for

Data Table Variable Cost Fixed Cost Total Cost 83 $ 120 $ 203 Rework cost per hour Repair costs Customer support cost per hou

More Info The new component will cost $125 more than the old one. In the next year. however, TechnoPrint expects that with th

i Requirements 1. Should TechnoPrint change to the new component? Show your calculations. 2. Suppose the estimate of 150 addi

0 0
Add a comment Improve this question Transcribed image text
Answer #1
No of units sold per year 15000
Benefits Amount
Savings in Rework Costs =18250*83 1514750
Savings in Customer Support costs =900*44 39600
Savings in fewer transportation loads =290*365 105850
Savings in warranty repair cost =4800*88 422400
Addl contribution margin due to addl sales 1350000
Total 3432600
Costs
Addl cost of new component =15150*125 1893750
Total 1893750
Net savings 1538850

1. Technoprint should upgrade to the new component as it resulted in the net savings of $1,538,850.

2. If the estimate of sales of addl 150 units is uncertain, then net savings would be 1538850-1350000+150*125 = $207,600. Therefore, it is not required to sell more units to justify the adoption of new component.

3. The managers at Technoprint shall make a sound assessment of reduction in cost of repairs and reworks and the appropriateness of underlying assumptions.

Add a comment
Know the answer?
Add Answer to:
This is all the information provided. E19-22 (similar to) TechnoPrint manufactures and sells 15,000 Ngh-technology printing...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • The income statement and additional data of McKnight Services, Inc., follow: B (Click the icon to...

    The income statement and additional data of McKnight Services, Inc., follow: B (Click the icon to view the income statement.) (Click the icon to view the additional data.) Read the requirements. Requirement 1. Calculate the cash conversion cycle for Mcknight Services. Round all calculations to two decimal places. Assume all sales are on credit. (Use a 365-day year for computations. Do not round any intermediary calculations, but then round each amount you enter into the table below to two decimal...

  • E19-18 (similar to) Question Help Osborn, Inc., produces cell phone equipment. Karen Mayfield, Osborn's presid...

    E19-18 (similar to) Question Help Osborn, Inc., produces cell phone equipment. Karen Mayfield, Osborn's president, implemented a quality-improvement program that has now been in operation for 2 years. The cost report shown here has recently been issued. (Click the icon to view the cost report.) Read the requirements. Data Table 290 Semi-Annual COQ Report, Osborn, Inc. (in thousands) 6/30/2016 12/31/2016 6/30/2017 12/31/2017 Prevention costs Machine maintenance 400 $ 400 $ 360 $ Supplier training 120 60 60 210 197 196...

  • S10-14 (similar to) Assigned Media Question Help The financial statements of Mountainview Employment Services, Inc., reported...

    S10-14 (similar to) Assigned Media Question Help The financial statements of Mountainview Employment Services, Inc., reported the following accounts: (Click the icon to view the list of accounts.) 3 (Click the icon to view the statement of stockholders' equity.) Read the requirements. Calculate the following for Mountainview Employment Services: A Data Table a. Net income Mountainview's net income is 352,000 58,000 Total revenues ..........$ Accounts payable ....... Paid-in capital in excess of par .........$ Notes Payable (short-term) .............. Common stock,...

  • ACC350 SP19 ETR700A Homework: Topic 1 Homework (Chapter 18) Score: 0 of 10 pts E18-22 (similar...

    ACC350 SP19 ETR700A Homework: Topic 1 Homework (Chapter 18) Score: 0 of 10 pts E18-22 (similar to) Snyder Corp, a lamp manufacturer, provided the following information for the year ended December 31, 2016 EEB (Click the icon to view year-end information.) Requirements 1. Use the information to prepare a schedule of cost of goods manufactured. 2. What is the unit product cost if Snyder manufactured 3,472 lamps for the year? Requirement 1. Use the information to prepare a schedule of...

  • Sherwin-Williams is a national paint manufacturer and retailer. ES(Click the icon to view additional information....

    Sherwin-Williams is a national paint manufacturer and retailer. ES(Click the icon to view additional information.) Assume that management has specified a 21% target rate of return. Read the requirements. We were unable to transcribe this imagei Data Table The company is segmented into five divisions: Paint Stores (branded retail location), Consumer (paint sold through stores such as Sears, Home Depot, and Lowe's), Automotive (sales to auto manufacturers), International, and Administration. The following is selected hypothetical divisional information for the company's...

  • There is no more information. This is the problem and information provided to me. Linette, a...

    There is no more information. This is the problem and information provided to me. Linette, a single taxpayer, had the following income and deductions for the tax year 2018: 囲click the icon to view the income and deductions.) Click the icon to view/ the standard deductio Read the requirements Requirement a. Compute Linette's taxable income and federal tax liability for 2018. First calculate the gross income, then calculate taxable income and the federal tax liability. (Calculate the is not used...

  • Ki Technology Co. manufactures DVDs for computer software and entertainment companies. Ki uses job order costing....

    Ki Technology Co. manufactures DVDs for computer software and entertainment companies. Ki uses job order costing. On April 2, ki bega Job 423, for Paradigm Pictures for $1.20 sales price per DVD Ki promised to deliver the DVDs to Paradigm Pictures by April 5. Ki incurred (Click the icon to view the costs) (Click the icon to view additional information) Read the requirements Job Description 6,000 DVDs Date Promised 4-5 Date Started 4-2 Date Completed 4-3 Manufacturing overhead allocated Direct...

  • Donaldson Manufacturing produces self-watering planters for use in upscale retail establishments Sales projections for the first...

    Donaldson Manufacturing produces self-watering planters for use in upscale retail establishments Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as follows: Click the icon to view additional information) Inventory at the start of the year was 800 planters. The desired Inventory of planters at the end of each month should be equal to 25% of the following month's budgeted sales. Each planter requires two pounds...

  • Kindly answer all the Requirements! Kindly answer all the Requirements Consider the following condensed financial statements...

    Kindly answer all the Requirements! Kindly answer all the Requirements Consider the following condensed financial statements of Safe Money, Inc. The company's target rate of return is 10% PEE (Click the icon to view the comparative balance sheet.) (Click the icon to view the income statement.) Read the requirements Requirement 1. Calculate the company's ROI. Round all of your answers to four decimal places. Begin by selecting the formula to calculate return on investment (ROI), and then enter the amounts...

  • Classic Technology Co. manufactures DVDs for computer software and entertainment companies. Classic uses job order costing....

    Classic Technology Co. manufactures DVDs for computer software and entertainment companies. Classic uses job order costing. On April 2, Classic began production of 5,000 DVDs, Job 423, for Cyclorama Pictures for $1.20 sales price per DVD. Classic promised to deliver the DVDs to Cyclorama Pictures by April 5. Classic incurred the following direct costs: Cassic Technology Co. manufactures DVDs for computer sotware and entertainment or $1.20 sales price per DVD. Classic promised to delver the DVDs to Cyclorama Pictures by...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT