a high- i Data Table - X wing in ations. $ A6 EX4 Selling price $ 90 $ 140 Variable manufacturing cost per unit 40 $ 80 Variable marketing cost per unit $ 12 $ 27 Budgeted total fixed overhead costs $ 380,000 $ 595,000 Hours required to produce one unit on the regular machine 1.0 0.5 Additional information includes the following: a. Hernon faces a capacity constraint on the regular machine of 50,000 hours per year. b. The capacity of the high-precision machine is not a constraint. c. Of the $595,000 budgeted fixed overhead costs of EX4, $375,000 are lease payments for the high-precision machine. This cost is charged entirely to EX4 because Hernon uses the machine exclusively to produce EX4. The company can cancel the lease agreement for the high-precision machine at any time without penalties d. All other overhead costs are fixed and cannot be changed. ather than Si Print Done 0. Should ur calcula gy ang the benefit from only selling AB or EX4 with the increased capacity of the regular machine. (Enter an amount in each input celli wuestion Help Fremon Precision Tools makes cutting tools for metalworking operations. It makes two types of tools: A6, a regular cutting tool, and EX4, a high-precision cutting tool manufactured on a regular machine, but EX4 must be manufactured on both the regular machine and a high-precision machine. The following information is available (Click to view the information) Road the resulrements Requirement 1. What product mix - that is, how many units of A6 and EX4 - wil maximize Hernon's operating income? Show your calculations (Enter an amount in each input coll including zero balances.) Begin by calculating the benefit from only selling A6 or EXA. A6 EX4 Hours of constrained resource Less Not relevant benefit Hernon should use its capacity to produce v since the net relevant benefit is The additional contribution from selling EX4 rather than A6 is to cover the additional costs of leasing the high-precision machine. Requirement 2. Suppose Heron can increase the annual capacity of its regular machines by 10,000 machine-hours at a cost of $100,000 Should Hermon increase the capacity of the regular machines by 10.000 machine hours? By how much will Hernon's operating income increase or decrease? Show your calculations Begin by calculating the benefit from only selling A6 or EX4 with the increased capacity of the regular machine. (Enter an amount in each input call including zero Choose from any list or enter any number in the input fields and then continue to the next question Save for Later manufactured on a regular machine, but EX4 must be manufactured on both the regular machine and a high-precision machine. The following information is available UUS AD, a regular cutting tool, and EX4. a high-precision cutting tool Abi Click to view the information) Read the requirements Requirement 2. Suppose Hemon can increase the annual capacity of its regular machines by 10,000 machine-hours at a cost of $100,000. Should Hernon increase the capacity of the regular machines by 10,000 machine hours? By how much wil Hernon's operating income increase or decrease? Show your calculations. Begin by calculating the benefit from only selling Ab or EX4 with the increased capacity of the regular machine (Enter an amount in each input Coil including zoro balances) A6 EX4 Hours of constrained resource Loss Cost of increasing capacity Net relevant benefit Should Hernon increase the capacity of the regular machines by 10,000 machine hours? By how much will Hornon's operating income increase? Heron increase the capacity of the regular machine by 10,000 machine hours. Hernon's operating income will increase by Question Help Hernon Precision Tools makes cutting tools for metalworking operations. It makes two types of tool: As a regular cutting tool, and EX4, a high precision cutting tool. A6 manufactured on a regular machine, but Ex4 must be manufactured on both the regular machine and a high precision machine. The following information is available: (Click to view the information) Read the requirements ou , 14.000 units of another cutting tool V2 for $133 per unit. Hornon must other accept the order for all 14,000 units or reject it totally V2 is exactly like Ab except that is variable manufacturing cost is $50 per unit (it takes one hour to produce one unit of V2 on the regular machine, and variable marketing cost equals 12 per unit) What product mix should Hamon choose to maximize operating income? Show your calculations First, determine the amount that should be used to determine if Hernon should accept Often's order. A6 EX4 V2 Hormon accept Oren's order Next, determine the product me for A6 and Ex4 that will maximize operating income along with the decision you made about Ofton's order. (Enter an amount in each input ill including zero balances) A6 EX4 Hours of constrained resource LOSS Net relevant ben Question Help Hernon Precision Tools makes cutting tools for metalworking operations. It makes two types of tools: A6, a regular cutting tool, and EX4, a high-precision cutting tool. A manufactured on a regular machine, but EX4 must be manufactured on both the regular machine and a high precision machine. The following information is available: Click to view the information.) Read the requirements AB EX4 V2 Hernon accept Often's order Next, determine the product mix for AB and EX4 that will maximize operating income along with the decision you made about Otter's order. (Entee an amount in each input cell including zero balances.) EX4 A6 Hours of constrained resource Less Net relevant benefit What product mix should Hemon choose to maximize operating incomo? (Enter an amount in each input cell, including zero balances) Based on the above calculations, the product mix that maximizes operating income is units of V2 units of A6, and units of EXA Choose from any list or enter any number in the input fields and then continue to the next question. a high- i Data Table - X wing in ations. $ A6 EX4 Selling price $ 90 $ 140 Variable manufacturing cost per unit 40 $ 80 Variable marketing cost per unit $ 12 $ 27 Budgeted total fixed overhead costs $ 380,000 $ 595,000 Hours required to produce one unit on the regular machine 1.0 0.5 Additional information includes the following: a. Hernon faces a capacity constraint on the regular machine of 50,000 hours per year. b. The capacity of the high-precision machine is not a constraint. c. Of the $595,000 budgeted fixed overhead costs of EX4, $375,000 are lease payments for the high-precision machine. This cost is charged entirely to EX4 because Hernon uses the machine exclusively to produce EX4. The company can cancel the lease agreement for the high-precision machine at any time without penalties d. All other overhead costs are fixed and cannot be changed. ather than Si Print Done 0. Should ur calcula gy ang the benefit from only selling AB or EX4 with the increased capacity of the regular machine. (Enter an amount in each input celli wuestion Help Fremon Precision Tools makes cutting tools for metalworking operations. It makes two types of tools: A6, a regular cutting tool, and EX4, a high-precision cutting tool manufactured on a regular machine, but EX4 must be manufactured on both the regular machine and a high-precision machine. The following information is available (Click to view the information) Road the resulrements Requirement 1. What product mix - that is, how many units of A6 and EX4 - wil maximize Hernon's operating income? Show your calculations (Enter an amount in each input coll including zero balances.) Begin by calculating the benefit from only selling A6 or EXA. A6 EX4 Hours of constrained resource Less Not relevant benefit Hernon should use its capacity to produce v since the net relevant benefit is The additional contribution from selling EX4 rather than A6 is to cover the additional costs of leasing the high-precision machine. Requirement 2. Suppose Heron can increase the annual capacity of its regular machines by 10,000 machine-hours at a cost of $100,000 Should Hermon increase the capacity of the regular machines by 10.000 machine hours? By how much will Hernon's operating income increase or decrease? Show your calculations Begin by calculating the benefit from only selling A6 or EX4 with the increased capacity of the regular machine. (Enter an amount in each input call including zero Choose from any list or enter any number in the input fields and then continue to the next question Save for Later manufactured on a regular machine, but EX4 must be manufactured on both the regular machine and a high-precision machine. The following information is available UUS AD, a regular cutting tool, and EX4. a high-precision cutting tool Abi Click to view the information) Read the requirements Requirement 2. Suppose Hemon can increase the annual capacity of its regular machines by 10,000 machine-hours at a cost of $100,000. Should Hernon increase the capacity of the regular machines by 10,000 machine hours? By how much wil Hernon's operating income increase or decrease? Show your calculations. Begin by calculating the benefit from only selling Ab or EX4 with the increased capacity of the regular machine (Enter an amount in each input Coil including zoro balances) A6 EX4 Hours of constrained resource Loss Cost of increasing capacity Net relevant benefit Should Hernon increase the capacity of the regular machines by 10,000 machine hours? By how much will Hornon's operating income increase? Heron increase the capacity of the regular machine by 10,000 machine hours. Hernon's operating income will increase by Question Help Hernon Precision Tools makes cutting tools for metalworking operations. It makes two types of tool: As a regular cutting tool, and EX4, a high precision cutting tool. A6 manufactured on a regular machine, but Ex4 must be manufactured on both the regular machine and a high precision machine. The following information is available: (Click to view the information) Read the requirements ou , 14.000 units of another cutting tool V2 for $133 per unit. Hornon must other accept the order for all 14,000 units or reject it totally V2 is exactly like Ab except that is variable manufacturing cost is $50 per unit (it takes one hour to produce one unit of V2 on the regular machine, and variable marketing cost equals 12 per unit) What product mix should Hamon choose to maximize operating income? Show your calculations First, determine the amount that should be used to determine if Hernon should accept Often's order. A6 EX4 V2 Hormon accept Oren's order Next, determine the product me for A6 and Ex4 that will maximize operating income along with the decision you made about Ofton's order. (Enter an amount in each input ill including zero balances) A6 EX4 Hours of constrained resource LOSS Net relevant ben Question Help Hernon Precision Tools makes cutting tools for metalworking operations. It makes two types of tools: A6, a regular cutting tool, and EX4, a high-precision cutting tool. A manufactured on a regular machine, but EX4 must be manufactured on both the regular machine and a high precision machine. The following information is available: Click to view the information.) Read the requirements AB EX4 V2 Hernon accept Often's order Next, determine the product mix for AB and EX4 that will maximize operating income along with the decision you made about Otter's order. (Entee an amount in each input cell including zero balances.) EX4 A6 Hours of constrained resource Less Net relevant benefit What product mix should Hemon choose to maximize operating incomo? (Enter an amount in each input cell, including zero balances) Based on the above calculations, the product mix that maximizes operating income is units of V2 units of A6, and units of EXA Choose from any list or enter any number in the input fields and then continue to the next