ANSWER:
Sell unpainted | Process further | Net income increase (decrease) | |
---|---|---|---|
Sales per unit | $75 | $106 | $31 |
Cost per unit variable fixed |
. -$36 -$13 |
. -$55 -$17 |
. -$19 -$4 |
Total | -$49 | -$72 | -$23 |
Net income per unit | $26 | $34 | $8 |
As the net income is increased by $8, the tables should be processed further
Do It Review 20-4 Mesa Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sel...
Mesa Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $70. Production costs are $40 variable and $10 fixed. Mesa Verde is considering staining and sealing the table to sell it for $102. Variable costs to finish each table are expected to be $18, and fixed costs are expected to be $1 Prepare an analysis showing whether Mesa Verde should process the tables further. (Enter negative amounts using either a negative sign preceding the...
Your answer is partially correct. Try again. Mesa Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $73. Production costs per unit are $42 variable and $12 fixed. Mesa Verde is considering staining and sealing the table to sell it for $108. Variable costs per unit to finish each table are expected to be an additional $21 per unit, and fixed costs are expected to be an additional $3 per unit. Prepare an analysis...
Mesa Designs produces a variety of hardware products, primarily for the do-it-yourself (DIY) market. As part of your job interview as a summer intern at Mesa, the cost accountant provides you with the following (fictitious) data for the year (in $000): Inventory information: 1/1/00 12/31/00 Direct materials $ 52 $ 59 Work-in-process 80 72 Finished goods 991 1,017 Other information: For the year ’00 Administrative costs $ 2,500 Depreciation (Factory) 2,980 Depreciation (Machines) 4,660 Direct labor 6,900 Direct...
Mesa Designs produces a variety of hardware products, primarily for the do-it-yourself (DIY) market. As part of your job interview as a summer intern at Mesa, the cost accountant provides you with the following (fictitious) data for the year (in $000). Inventory information: 1/1/00 12/31/00 Direct materials $ 53 $ 60 Work-in-process 81 73 Finished goods 992 1,018 Other information: For the year ’00 Administrative costs $ 2,600 Depreciation (Factory) 3,030 Depreciation (Machines) 4,670 Direct labor 7,000 Direct materials purchased...
Mesa Designs produces a variety of hardware products, primarily for the do-it-yourself (DIY) market. As part of your job interview as a summer intern at Mesa, the cost accountant provides you with the following (fictitious) data for the year (in $000). Inventory information: 1/1/00 12/31/00 Direct materials $ 49 $ 56 Work-in-process 77 69 Finished goods 988 1,014 Other information: For the year ’00 Administrative costs $ 2,200 Depreciation (Factory) 2,830 Depreciation (Machines) 4,630 Direct labor 6,600 Direct...
Green Inc. makes unfinished bookcases that it sells for $57.
Production costs are $37 variable and $9 fixed. Because it has
unused capacity, Green is considering finishing the bookcases and
selling them for $74. Variable finishing costs are expected to be
$7 per unit with no increase in fixed costs.
Prepare an analysis on a per-unit basis that shows whether Green
should sell unfinished or finished bookcases. (If an
amount reduces the net income then enter with a negative sign...
Pine Street Inc. makes unfinished bookcases that it sells for
$62. Production costs are $36 variable and $10 fixed. Because it
has unused capacity, Pine Street is considering finishing the
bookcases and selling them for $70. Variable finishing costs are
expected to be $6 per unit with no increase in fixed costs. Prepare
an analysis on a per unit basis showing whether Pine Street should
sell unfinished or finished bookcases. (Round answers
to 2 decimal places, e.g. 15.25. Enter
negative...
Brief Exercise 20-5 Pine Street Inc. makes unfinished bookcases that it sells for $58.10. Production costs are $37.49 variable and $10.50 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $74.91 Variable finishing costs are expected to be $5.79 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Pine Street should sell unfinished or finished bookcases. (Round answers to 2 decimal places, e.g....
Pine Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $71. Variable finishing costs are expected to be an additional $7 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Pine Street should sell unfinished or finished bookcases. (Enter negative amounts using either a negative sign...
Do It! Review 20-6 Gator Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $480,000, variable expenses of $364,000, and fixed expenses of $150,000. Therefore, the gloves and mittens line had a net loss of $34,000. If Gator eliminates the line, $41,000 of fixed costs will remain. Prepare an analysis showing whether the company should eliminate the gloves and mittens line. (Enter negative amounts using either a negative sign preceding the number...