PIM Industries Inc. manufactures electronics components
PIM Industries Inc. manufactures electronics components. Each unit costs $35 before the final test. The final test rejects, on average, 6% of the 54,000 units manufactured per year. The average rejection rate of the industry is 4%. A consultant has determined that poor lighting is the most likely cause of this high rejection rate. It would cost $145,000 to install adequate lighting in the assembly department, which would be useful for 5 years. With adequate lighting (which will cost an additional $5,900 of operating costs per year), the firm expects to reduce its rejection rate to no higher than the industry average.
Required: 1-a. What would be the projected five-year impact on operating profit?
Five-year projected effect on operating income:
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Hello, Please take a look at the scenario and question and provide guidance on the question...
Hello,
Please take a look at the scenario and question and provide
guidance on the question in yellow. This is related to an MBA
course in Management Accounting.
Thank you
PIM Industries, Inc., manufactures electronics components. Each unit costs $30 before the final test. The final test rejects, on average, 5% of the 50,000 units manufactured per year. The average rejection rate of the industry is 3%. A consultant has determined that poor lighting is the most likely cause of...
Damon Industries manufactures 18,000 components per year. The manufacturing costs of the components was determined as...
Damon Industries manufactures 18,000 components per year. The manufacturing costs of the components was determined as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $144,000 23,500 63,eee 83,000 An outside supplier has offered to sell the component for $14. If Damon purchases the component from the outside supplier, the manufacturing facilities would be unused and could be rented out for $11.900. If Damon purchases the component from the supplier instead of manufacturing it, the effect on operating...
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Entries for Direct Labor and Factory Overhead Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets from November jobs are summarized as follows: Job 201 $3,360 Job 202 1,680 Job 203 1,330 Job 204 2,480 Factory supervision 1,150 Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $24 per direct labor hour. The direct labor rate is $15 per hour. If required, round final answers to the...
Damon Industries manufactures 30,000 components per year. The manufacturing costs of the components was determined as...
Damon Industries manufactures 30,000 components per year. The manufacturing costs of the components was determined as follows: Direct materials $ 150,000 Direct labor 170,000 Variable manufacturing overhead 70,000 Fixed manufacturing overhead 90,000 An outside supplier has offered to sell the component for $14. If Damon purchases the component from the outside supplier, the manufacturing facilities would be unused and could be rented out for $11,000. If Damon purchases the component from the supplier instead of manufacturing it, the effect on...
ROE Carson Electronics is a company based in California. It produces electronic equipment and components and...
ROE
Carson Electronics is a company based in California. It produces
electronic equipment and components and sells them within USA and
other countries. It considers BGT Electronics, also located in
California, as the industry leader.
The income statement and balance sheet of Carson
Electronics and BGT Electronics are shown in
Exhibit 1. Carson is planning to introduce
a new equipment that would reduce electricity
consumption by 40%. It has already
conducted a market research study at a cost of $3...
SVE & EXT SLATE Damon Industries manufactures 30,000 components per year. The manufacturing costs of the...
SVE & EXT SLATE Damon Industries manufactures 30,000 components per year. The manufacturing costs of the components was determined as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $150,000 170,000 70,000 90,099 Jon - not a Skype An outside supplier has offered to sell the component for $14. If Damon purchases the component from the outside supplier, the manufacturing facilities would be unused and could be rented out for $11.000. If Damon purchases the component from the...
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Consumers Energy Inc (CSI) operates a coal fired power plant in Michigan, which has to come...
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Hello,
Please take a look at the scenario and question and provide
guidance on the question in yellow. This is related to an MBA
course in Management Accounting.
Thank you
PIM Industries, Inc., manufactures electronics components. Each unit costs $30 before the final test. The final test rejects, on average, 5% of the 50,000 units manufactured per year. The average rejection rate of the industry is 3%. A consultant has determined that poor lighting is the most likely cause of...
Damon Industries manufactures 18,000 components per year. The manufacturing costs of the components was determined as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $144,000 23,500 63,eee 83,000 An outside supplier has offered to sell the component for $14. If Damon purchases the component from the outside supplier, the manufacturing facilities would be unused and could be rented out for $11.900. If Damon purchases the component from the supplier instead of manufacturing it, the effect on operating...
Entries for Direct Labor and Factory Overhead Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets from November jobs are summarized as follows: Job 201 $3,360 Job 202 1,680 Job 203 1,330 Job 204 2,480 Factory supervision 1,150 Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $24 per direct labor hour. The direct labor rate is $15 per hour. If required, round final answers to the...
ROE
Carson Electronics is a company based in California. It produces
electronic equipment and components and sells them within USA and
other countries. It considers BGT Electronics, also located in
California, as the industry leader.
The income statement and balance sheet of Carson
Electronics and BGT Electronics are shown in
Exhibit 1. Carson is planning to introduce
a new equipment that would reduce electricity
consumption by 40%. It has already
conducted a market research study at a cost of $3...
SVE & EXT SLATE Damon Industries manufactures 30,000 components per year. The manufacturing costs of the components was determined as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $150,000 170,000 70,000 90,099 Jon - not a Skype An outside supplier has offered to sell the component for $14. If Damon purchases the component from the outside supplier, the manufacturing facilities would be unused and could be rented out for $11.000. If Damon purchases the component from the...
4. Consumers Energy Inc (CSI) operates a coal fired power plant in Michigan, which has to come in compliance with nitrogen oxide (NOx) standards by reducing its NOx emissions to 50 tons per year from its current level of 150 tons/year. It is considering the following options to come in compliance. A) Install Selective Catalytic Reactor (SCR) on its boiler. SCR reduces NOx emissions by absorbing NOx in exhaust flue gases. SCR requires a capital investment of $600,000 in year...
Required information [The following information applies to the questions displayed below.) Vista Electronics, Inc. manufactures two different types of coils used in electric motors. In the fall of the current year, Erica Becker, the controller, compiled the following data. • Sales forecast for 20x0 (all units to be shipped in 20x0): Product Light coil Heavy coil Units 54,000 34,000 Price $ 240 340 • Raw-material prices and inventory levels: Raw Material Sheet metal Copper wire Platform Expected Inventories, January 1,...
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