CVP, international cost structure differences. Knitwear Inc. is choosing among three countries as the sole site for
Question:
CVP, international cost structure differences. Knitwear Inc. is choosing among three countries as the sole site for manufacturing its new sweater — Singapore, Thailand, and the United States. All sweaters are to be sold to retail outlets in the United States at S32 per unit.
These retail outlets add their own markup when selling to final customers. The three countries differ in their fixed costs and variable costs per sweater.
Variable Variable Annual Manufacturing Marketing and Fixed Costs Distribution Costs Costs per Sweater per Sweater Singapore S 6.5 million $8.00 $11.00 Thailand 4.5 million 5.50 11.50 United States 12.0 million 13.00 9.00 Required 1. Compute the breake\ ei i point of Knitwear Inc. in both
(a) units sold and
(b) sales dollars for each of the three coui tri - considered for manufacturing the su eaters.
2. If Knitwear Inc. sells ,[ '00 sweaters in 19 4, what is the bin; ;eted opera tin income for each of the three count considered for manufacturing the sw eaters? Comm< : on tb suits.
Step by Step Answer:
Cost Accounting A Managerial Emphasis
ISBN: 9780131810662
8th Edition
Authors: Charles T. Horngren, George Foster, Srikant M. Datar