Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

#1 #2 #3 #4 Ridgeway Digital Components Company assembles circult boards by using a manually operated machine to insert electronic components. The original cost of

#1
image text in transcribed
image text in transcribed
#2
image text in transcribed
image text in transcribed
#3
image text in transcribed
#4
image text in transcribed
Ridgeway Digital Components Company assembles circult boards by using a manually operated machine to insert electronic components. The original cost of the machine is $93,400, the accumulated depreciation is $37,400, Its remaining usefut life is 5 years, and its residual value is negligible. On October 1 of the current year, a proposal was made to replace the present manufacturing procedure with a fully automatic machine that has a purchase price of $194,300. The automatic machine has an estimated useful life of 5 years and no significant residual value. For use in evaluating the proposal, the managerial accountant accumulated the following annual data on present and proposed operations: a. Prepare a differential analysis dated October 1 to determine whether to continue with (Alternative 1) or replace (Aiternative 2) the old machine, Prepare the analysis over the useful life of the new machine. If an amount is zero, enter " 0 *. If required, use a minus sign to indicate a loss. Youngstown Glass Company manufactures three types of safety plate glass: large, medlum, and small. All three products have high demand, Thus, Youngstown Glass is able to sell all the safety glass that it can make. The production process indudes an autoclave operation, which is a pressurized heat treatment. The autociave is a production bottleneck. Total fixed costs are $140,000 for the company as a whole. In addition, the following information is available about the three products: b. Prepare an analysis showing which product is the most profitable per bottleneck hour. Round the "Unit contribution margin per production t the nearest cent. Smart Stream lnc. uses the variable cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cell phones are as follows: Varlable costs per unit: Smart Stream desires a profit equal to a 30% return on invested assets of $1,200,000. a. Determine the variable costs and the variable cost amount per unit for the production and sale of 10,000 cell phones. b. Determine the variable cost markup percentage for cell phones. Round to two decimal places. \% c. Determine the selling price of cell phones, If required, round to the nearest dollar. per cell phone Each flight has a capacty of 150 seats, wh an average of 125 seats sold per fight at an average ticket price of s180. Assume Pacific Airways is considering a new service that would provide tickets at half price. Passengers would need to fly standloy to recelve the discount, but would be provided a flight for a given day of travel. An ariafysis revealed that an average of 8 existing passengers would use the new discounted tickets for travel. In addition, 15 new passengers would be attracted to the offer. a. Determine the contribution margin per passenger for the full-priced ticket. b. Determine the break-even number of seats soid per flight. seats c. Determine the contribution margin per passenger for discounted tickets

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Charles T. Horngren, Walter T. Harrison Jr., M. Suzanne Oliv

9th Edition

130898414, 9780132997379, 978-0130898418, 132997371, 978-0132569309

More Books

Students also viewed these Accounting questions

Question

What is the difference between anabolism and catabolism?

Answered: 1 week ago