4.5 pts Question 24 Rush industries, Inc. builds parts for large automated heavy equipment. The Vice President for Marketing has determined that sales are dwindling for the firm's products because of aggressive pricing by competitors. Rush Industries sells the product for $625 where as the competition's comparable part is selling in the $500 range. The VP for Marketing has determined that a price drop to $475 is necessary to regain market share and annual sales of 1,000 units. Data based on sales of 1,000 valves is as follows: Budgeted Actual Actual Cost Amount Amount Direct materials $55,600 10,000 sq.ft. 12,000 sq.ft. (sheet metal) Direct labor $154,000 4,600 hrs. 5,000 hrs. Machine setups $92,000 2,500 hrs. 2,900 hrs. Mechanical $120,000 3,000 hrs. 3,500 hrs. assembly Q. If a profit per unit of $80 is desired, the target cost would be: $341.60 $545.00 $395.00 $420.00 Question 21 4 pts University Company produces and sells four products; W, X, Y and Z. The following data relate to its four products. W X Y Z Daily demand in 70 80 100 units Selling price per $190 $134 $150 $136 unit Variable costs per $60 $64 $70 $74 unit Labor time in 10 12 20 9 minutes per unit There are total of 3002 minutes available per day. Total fixed costs are $3,100 per day. Q. How many units of product W should be produced each day? 60 70 80 60 OOO O Question 22 4 pts University Company produces and sells four products; W, X, Y and Z. The following data relate to its four products. W X Y Daily demand in 80 60 70 100 units Selling price per $150 $190 $136 $134 unit Variable costs per $64 $60 $70 $74 unit Labor time in 10 20 9 12 minutes per unit There are total of 3002 minutes available per day. Total fixed costs are $3,100 per day Q. How many units of product Z should be produced each day? 5 100 0 31 z uOncanh. Rush industries, Inc. builds parts for large automated heavy equipment. The Vice President for Marketing has determined that sales are dwindling for the firm's products because of aggressive pricing by competitors. Rush Industries sells the product for $625 where as the competition's comparable part is selling in the $500 range. The VP for Marketing has determined that a price drop to $475 is necessary to regain market share and annual sales of 1,000 units. Data based on sales of 1,000 valves is as follows: Budgeted Actual Actual Cost Amount Amount Direct materials 12,000 sq.ft. $55,600 10,000 sq.ft. (sheet metal) Direct labor 4,600 hrs. 5,000 hrs. $154,000 Machine setups $92,000 2,500 hrs. 2,900 hrs. Mechanical $120,000 3,000 hrs. 3,500 hrs. assembly Q. The current cost per unit is: $475.00 $23.40 $21.60 $421.60
