Question

Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,50Required 1. Determine the amount of desired profit from the production and sale of flat panel displays. 2. Assuming that the1. Determine the amount of desired profit from the production and sale of flat panel displays Points:0/1 2. Assuming that the6. A. Prepare a differential analysis of the proposed sale to Maple Leaf Visual Inc. Refer to the lists of Labels and Amount

Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows Labels and Amount Descriptions Labels Cash flows from operating activities Costs Vrable costs per unit Direct materials 122.00 28.00 48.00 4.00 232.00 3 Direct labor Factory overhead Selling and administrative expenses 6 Total Cash payments for merchandise Cash received from customers Fixed manufacturing costs Income (Loss), per unit Revenues Variable manufacturing costs Fixed costs: Factory overhead Selling and administrative expenses 245,000.00 48,000.00 Crystal Displays Inc. is currently considering establishing a selling price for flat panel displays. The president of Crystal Displays has decided to use the cost-plus approach to product pricing and has indicated that the displays must earn a 13% rate of return on invested assets.
Required 1. Determine the amount of desired profit from the production and sale of flat panel displays. 2. Assuming that the product cost concept is used, determine (a) the cost amount per unit, (b) the markup percentage (rounded to two decimal places), and (C) the selling price of flat panel displays. 3. (Appendix) Assuming that the total cost concept is used, determine (a) the cost amount per unit, (b) the markup percentage (rounded to two decimal places), and (c) the selling price of flat panel displays. 4. (Appendix) Assuming that the veriable cost concept is used, determine (a) the cost amount per unit, (b) the markup percentage (rounded to two decimal places), and (c) the selling price of flat panel displays. 5. Comment on any additional considerations that could influence establishing the selling price for flat panel displays 6. Assume that as of August 1, 3,000 units of flat panel displays have bee produced and sold during the current year Analysis of the domestic market indicates that 2,000 additional units are expected to be sold during the remainder of the year at the normal product price determined under the product cost concept. On August 3, Crystal Displays Inc. received an offer from Maple Leaf Visual Inc. for 1,000 units of flat panel displays at S220 each. Maple Leaf Visual Inc. will market the units in Canada under its own brand name, and no variable selling and administrative expenses associated with the sale will be incurred by Crystal Displays Inc. The additional business is not expected to affect the domestic sales of flat panel displays, and the additional units could be produced using existing factory, selling, and administrative capacity A. Prepare a differential analysis of the proposed sale to Maple Leaf Visual Inc. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "O. A colon () will automatically appear if required. B. Based on the differential analysis in part (A), should the proposal be accepted?
1. Determine the amount of desired profit from the production and sale of flat panel displays Points:0/1 2. Assuming that the product cost concept is used, determine (a) the cost amount per unit, (b) the markup percentage (rounded to two decimal places), and (c) the selling price of flat panel displays. Cost amountpnit S Markup percentage Selling price Points:0/3 3. (Appendix) Assuming that the total cost concent is used determine (a) the cost amount per unit, (b) the markup percentage (rounded to two decimal places), and (c) the selling price of fiat panel displays Cost amount per unit S Markup percentage Selling price Points:0/3 (Appendix) Assuming that the variable cost concept is used, determine (a) the cost amount per unit, (b) the markup percentage (rounded to two decimal places), and (c) the selling price of filat panel displays. Cost amount per unitS Markup percentage Selling price K Points: 0/ 3
6. A. Prepare a differential analysis of the proposed sale to Maple Leaf Visual Inc. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "O A colon() will automatically appear if required Question not attempted Score: 0/53 Differential Analysis Reject Order (Alternative 1) or Accept Order (Alternative 2) August 3 Differential Effect Reject Order Accept Order on Income Alternative 1) Alternative 2) Alternative 2) 4Label)
0 0
Add a comment Improve this question Transcribed image text
Answer #1


Crystal Displays 1. Determine the amount of desired profit from the production and sale of flat panel displays Invested Asset

Add a comment
Know the answer?
Add Answer to:
Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 5,000 units of flat pa...
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
  • Instructions Crystal Displays Inc. recently began production of a new product, flat panel displays, which required...

    Instructions Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,300,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows: Variable costs per unit: 1 $118.00 Direct materials 2 Direct labor 32.00 3 Factory overhead 51.00 4 Selling and administrative expenses 36.00 5 $237.00 Total 6 7 Fixed costs: $250,000.00 Factory overhead 8 Selling and administrative expenses 155,000.00 9 Instructions Crystal Displays...

  • Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of...

    Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows: Variable costs per unit: 1 $120.00 Direct materials 30,00 Direct labor Factory overhead 50,00 4 Selling and administrative expenses 35.00 5 $235.00 Total variable cost per unit 7 Fixed costs: Factory overhead $250,000.00 Selling and administrative expenses 150,000.00 9 Crystal Displays Inc. is...

  • Crystal Displays Inc. recently began production of a new product, flat panel displays, which requ...

    Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,300,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows: 1 Variable costs per unit: 2 Direct materials $121.00 3 Direct labor 28.00 4 Factory overhead 49.00 5 Selling and administrative expenses 37.00 6 Total $235.00 7 Fixed costs: 8 Factory overhead $254,000.00 9 Selling and administrative expenses 147,000.00 Crystal Displays Inc. is...

  • Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the...

    Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows: 1 Variable costs per unit: 2 Direct materials $122.00 3 Direct labor 29.00 4 Factory overhead 52.00 5 Selling and administrative expenses 35.00 6 Total variable cost per unit $238.00 7 Fixed costs: 8 Factory overhead $247,000.00 9 Selling and administrative expenses 149,000.00...

  • Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the...

    Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows: 1 Variable costs per unit: 1 Direct materials $120.00 Direct labor 50.00 • Factory overhead 50.00 Selling and administrative expenses 3500 Total variable cost per unit 5235.00 11 AM V 2019 Final Question Fixed costs: Factory overhead Selling and administrative expenses $250,000.00 150,000.00...

  • Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the inve...

    Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 5,000 units of fat panel displays are estimated as follows: • Variable costs per unit: $122.00 ? 5 Direct materials Direct labor 7800 4800 Factory overhead Selling and administrative expenses 5 34,00 Total $232.00 Fixed costs: Factory overhead Selling and administrative expenses $245,000.00 148,000.00 Crystal Displays Inc. is currently considering establishing a selling...

  • Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of...

    Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows: Variable costs per unit: Fixed costs: Direct materials $120 Factory overhead $250,000 Direct labor 30 Selling and administrative expenses 150,000 Factory overhead 50 Selling and administrative expenses 35 Total variable cost per unit $235 Crystal Displays Inc. is currently considering establishing a selling...

  • Product Pricing using the Cost-Plus Approach Methods; Differential Analysis for Accepting Additional Business Crystal Displays Inc....

    Product Pricing using the Cost-Plus Approach Methods; Differential Analysis for Accepting Additional Business Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows: Variable costs per unit: Fixed costs: Direct materials $120 Factory overhead $250,000 Direct labor 30 Selling and administrative expenses 150,000 Factory overhead 50 Selling and administrative expenses 35 Total variable...

  • PR 25-5A Product pricing using the cost-plus approach concepts; OBJ. 1, 2 differential analysis for accepting...

    PR 25-5A Product pricing using the cost-plus approach concepts; OBJ. 1, 2 differential analysis for accepting additional business Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows: $120 30 Fixed costs: Factory overhead Selling and administrative expenses $250,000 150,000 Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative...

  • OBJ. 1, 2 PR 25-5A Product pricing using the cost-plus approach concepts; differential analysis for accepting...

    OBJ. 1, 2 PR 25-5A Product pricing using the cost-plus approach concepts; differential analysis for accepting additional business Crystal Displays Inc. recently began production of a new product. flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selms 5,000 units of flat panel displays are estimated as follows: $120 Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total Fixed costs: Factory overhead Selling and administrative expenses $250,000...

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