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Use the following information for Question 23 - 27: Limar, Inc. manufactures three different motors - AX, BX, and CX. Data on the motors is presented below: AX BX CX Budget Information: Inventory units, January 1, 2022 Production units in 2022 2,000 2,200 2,400 3,600 3,400 3,000 Units sold in 2022 3,300 3.000 3,600 4,500 3,200 Production units in 2023 Estimated Inventory units, December 31, 2023 3,400 2,000 2,300 1,600 Cost and Production Information: $560 $450 Selling price Unit variable cost $620 $360 $200 $240 Machine-hours per unit 8 9 7 Avoidable fixed costs, if product line is not produced $240,000 $278,000 $255,000 Limar's production capacity is 80,200 machine-hours per year. Limar is currently facing a business decision 2023 KoCo, the Korean subsidiary of Limar, currently purchases 6,000 units of a simpler version (AX-N) of AX, from its local supplier at $560 each. If Limar was to make AX-N, the company estimates that AX-N would result in variable costs of $320 per unit and will require only 6 machine hours per unit to manufacture. Furthermore, Limar will invest in a new stamping machine solely for the production of AX-N for a fixed cost of $480,000. If Limar produces 6,000 units for Koco, it will not produce and sell AX to compete with KoCo. Please enter your answers without "$", and ", ". Calculate the following items: AX BX CX The budgeted Sale units for each model for 2023. units units units $ $ $ The contribution margin per unit for each model. $ $ $ The profitability index for each model. (Round to 1 decimal point.) Ranking the order of priority for production. Calculate the total production hours required for the 3 models. Hours For which model should production be reduced and by how many units? The number of units should be reduced. units Calculate the sale breakeven in units, if Limar decides to make AX-N: units AX AX-N ta $ $ Calculate the profitability index for: (Round to 1 decimal point.) Given the machine hour constraint, answer the following questions: Number of hours required for AX: hours Number of hours required for Special Order (AX-N): hours Impact on BX (enter an absolute number for positive, and a bracket number for negative): hours Impact on CX (enter an absolute number for positive, and a bracket number for negative): hours Limar is considering taking the special order. Please answering the following questions: Please enter your answers without "$", and ",". Enter an absolute number for positive, and a bracket number for negative. Rounded to the nearest number. $ What is the benefit from the sale of AX-N? ta $ What is the cost from not selling AX? $ What is the Opportunity Cost from other products? $ What is the minimum transfer price per unit of AX-N? If Limar pays a higher tax rate than Koco, to reduce overall taxes, what should the transfer price be? [Select ] Low Medium High
