A study has been conducted to determine if Product A should be dropped. Sales of the product total $500,000; variable expenses total $340,000. Fixed expenses charged to the product total $210,000. The company estimates that $60,000 of these fixed expenses are not avoidable even if the product is dropped. If Product A is dropped, the annual financial advantage (disadvantage) for the company of eliminating this product should be: Multiple Choice ($10,000) $10,000 O ($50,000) $50,000 O An automated tuming machine is the current constraint at Jordison Corporation. Three products use this constrained resource Data concerning those products appear below Selling price per unit Variable cost per unit Minutes on the constraint IN JO RO $168.60 $364.65 $466.74 $127.00 $287.27 $339.44 2.40 5.30 9.50 Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized (Round your intermediate calculations to 2 decimal places.) Multiple Choice LN JQ, RO RQ LN, JQ RQ, JQ, LN JQ. ROLN The Wyeth Corporation produces three products, A, B, and C, from a single raw material input. Product A can be sold at the splitoff point for $40.000, or it can be processed further at a total cost of $15,000 and then sold for $58,000. Joint costs total $60,000 annually. Product A should be Multiple Choice discontinued because revenues after further processing are less than total joint costs sold at the split-off point processed further and then sold processed further only if its share of the total joint costs is less than the incremental revenues from further processing Two alternatives, code named X and Y are under consideration at Guyer Corporation Costs associated with the alternatives are listed below. Alternative Materials costs Processing costs Equipment rental Occupancy costs $ 45,000 $ 49,400 $ 18,400 $ 17,600 Alternative Y $ 65,300 S49,400 $ 18,400 $ 26,100 What is the financial advantage (disadvantage) of Alternative Yover Alternative X? Multiple Choice S1144,800) $130,400 5159 200 5128 800) we The Tolar Corporation has 400 obsolete des calculators that are carried in wventory at a total cost of $26.800 ir these calculators are upgraded at a total cost of 510.000 they can be on a total of 500,000 As an alternative, the calculators can be sold in the present condition for $11200 The sun cost in this situation is Me Choc 310000 300 The management of Woznick Corporation has been concerned for some time with the financial performance of its product V860 and has considered discontinuing it on several occasions. Data from the company's accounting system for this product for last year appear below Sales $150,000 Variable expenses $ 72,000 Fixed manufacturing expenses $ 50,000 Fixed selling and administrative expenses $ 33,000 In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $30,000 of the fixed manufacturing expenses and $13,000 of the fixed selling and administrative expenses are avoidable if product V860 is discontinued. What would be the financial advantage (disadvantage) from dropping product V860? Multiple Choice 1535,000) ($5,000) $35,000 $5,000 Help Save & Exit Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Unit $1.10 $3.10 56.90 55.80 $5.20 $5.60 An outside supplier has offered to produce and sell the part to the company for $20.80 each. If this offer is accepted the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use The allocated general overhead represents fixed costs of the entire company of the outside supplier's offer were accepted, only $4,000 of these allocated general overhead costs would be avoided. managernent decides to buy part 243 from the outside supplier rather than to continue making the part what would be the annual financial advantage (disadvantage)? Multiple Choice (534,500) ($30,500) (515,500) ($38,500) Help Save & Exit The constraint at Pickrel Corporation is time on a particular machine. The company makes three products that use this machine. Data concerning those products appear below: Selling price per unit Variable cost per unit Minutes on the constraint VD JT SM $344.85 $415.40 $119.32 $270.18 $310.88 $ 91.96 5.70 6.70 1.90 Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized (Round your intermediate calculations to 2 decimal places.) Multiple Choice JT, SM, VD JT, VD, SM VD, SM.JT SMVDJT