answer what is under "required"

Part 1: When Dart Products started operation five years ago, its only product was a radar detector known as the Bear Detector. The production system was simple, with Bear Detectors manually assembled from purchased components. With no ending work-in-process inventories, unit costs were calculated once a month by dividing current manufacturing costs by units produced. Last year, Dart Products began to manufacture a second product, code-named the Lion Tamer. The production of Lion Tamers involves both machine-intensive fabrication and manual assembly. The introduction of the second product necessitated a change in the firm's simple accounting system. Dart Products now separately assigns direct material and direct labor costs to each product using information contained on materials requisitions and work tickets. Manufacturing overhead is accumulated in a single cost pool and assigned on the basis of direct labor hours, which is common to both products. Following are last year's financial results by product: Bear Detector Lion Tamer Sales Units 7,500 3,000 $750,000 $ 450,000 $ 97,500 Dollars.... Cost of goods sold Direct materials Direct labor... Applied overhead Total Gross profit $165,000 281,250 393,750 90.000 126.000 (313,500) (840,000) $ (90,000) $ 136,500 Management is concerned about the mixed nature of last year's financial performance. It appears that the Lion Tamer is a roaring success. The only competition, the Nittney Company, has been selling a competing product for considerably more than Dart's Lion Tamer; this company is in financial difficulty and is likely to file for bankruptcy. The management of Dart Products attributes the Lion Tamer's success to excellent production management. Management is concerned, however, about the future of the Bear Detector and is likely to discontinue that product unless its profitability can be improved. You have been asked to help with this decision and have obtained the following information: The labor rate is $15 per hour. Dart has two separate production operations, fabrication and assembly. Bear Detectors undergo only assembly operations and require 2.5 assembly hours per unit. Lion Tamers undergo both fabrication and assembly and require 1.5 fabrication hours and 0.5 assembly hour per unit. The annual Fabricating Department overhead cost function is: $184,500 + S6 (labor hours) The annual Assembly Department overhead cost function is: $62,250 + $12 (labor hours) Required You may need to review materials in Chapters 3 and 4 to complete this case. Evaluate the profitability of Dart's two products and make any recommendations you believe appropriate. Part II: On July 2, Maddon Financial acquired 90% of the outstanding stock of Kluber Industries in exchange for 2,000 shares of its own stock. Maddon Financial has a reputation as a high flier company that commands a high price-to-earnings ratio because its management team works wonders in improving the performance of ailing companies. At the time of the acquisition, Kluber was producing and selling at an annual rate of 100,000 units per year. This is in line with the firm's average annual activity. Fifty thousand units were produced and sold during the first half of the year. Immediately after the acquisition Maddon Financial installed its own management team and increased production to practical capacity. One-hundred thousand units were produced during the second half of the year. At the end of the year, the new management declared another dramatic turnaround and a $100,000 cash dividend when the following set of income statements was issued: KLUBER INDUSTRIES Income Statement For the first and second half of the year First Second Total Sales... Cost of goods sold Gross profit Selling and administrative expenses Net income.. $2,800,000 (2,400,000) 400,000 (400,000) $ 0 $2,800,000 (1,400,000) 1,400,000 (800,000) $ 600,000 $5,600,000 (3,800,000) 1,800,000 (1,200,000) $ 600,000 * Absorption costing with any underabsorbed or overabsorbed overhead written off as an adjustment to cost of goods sold. Kluber applies manufacturing overhead using a predetermined overhead rate based on predicted annual fixed overhead of $2,000,000 and annual production of 200,000 units. Required As the only representative of the minority interest on the board of directors, evaluate the performance of the new management team. Part 1: When Dart Products started operation five years ago, its only product was a radar detector known as the Bear Detector. The production system was simple, with Bear Detectors manually assembled from purchased components. With no ending work-in-process inventories, unit costs were calculated once a month by dividing current manufacturing costs by units produced. Last year, Dart Products began to manufacture a second product, code-named the Lion Tamer. The production of Lion Tamers involves both machine-intensive fabrication and manual assembly. The introduction of the second product necessitated a change in the firm's simple accounting system. Dart Products now separately assigns direct material and direct labor costs to each product using information contained on materials requisitions and work tickets. Manufacturing overhead is accumulated in a single cost pool and assigned on the basis of direct labor hours, which is common to both products. Following are last year's financial results by product: Bear Detector Lion Tamer Sales Units 7,500 3,000 $750,000 $ 450,000 $ 97,500 Dollars.... Cost of goods sold Direct materials Direct labor... Applied overhead Total Gross profit $165,000 281,250 393,750 90.000 126.000 (313,500) (840,000) $ (90,000) $ 136,500 Management is concerned about the mixed nature of last year's financial performance. It appears that the Lion Tamer is a roaring success. The only competition, the Nittney Company, has been selling a competing product for considerably more than Dart's Lion Tamer; this company is in financial difficulty and is likely to file for bankruptcy. The management of Dart Products attributes the Lion Tamer's success to excellent production management. Management is concerned, however, about the future of the Bear Detector and is likely to discontinue that product unless its profitability can be improved. You have been asked to help with this decision and have obtained the following information: The labor rate is $15 per hour. Dart has two separate production operations, fabrication and assembly. Bear Detectors undergo only assembly operations and require 2.5 assembly hours per unit. Lion Tamers undergo both fabrication and assembly and require 1.5 fabrication hours and 0.5 assembly hour per unit. The annual Fabricating Department overhead cost function is: $184,500 + S6 (labor hours) The annual Assembly Department overhead cost function is: $62,250 + $12 (labor hours) Required You may need to review materials in Chapters 3 and 4 to complete this case. Evaluate the profitability of Dart's two products and make any recommendations you believe appropriate. Part II: On July 2, Maddon Financial acquired 90% of the outstanding stock of Kluber Industries in exchange for 2,000 shares of its own stock. Maddon Financial has a reputation as a high flier company that commands a high price-to-earnings ratio because its management team works wonders in improving the performance of ailing companies. At the time of the acquisition, Kluber was producing and selling at an annual rate of 100,000 units per year. This is in line with the firm's average annual activity. Fifty thousand units were produced and sold during the first half of the year. Immediately after the acquisition Maddon Financial installed its own management team and increased production to practical capacity. One-hundred thousand units were produced during the second half of the year. At the end of the year, the new management declared another dramatic turnaround and a $100,000 cash dividend when the following set of income statements was issued: KLUBER INDUSTRIES Income Statement For the first and second half of the year First Second Total Sales... Cost of goods sold Gross profit Selling and administrative expenses Net income.. $2,800,000 (2,400,000) 400,000 (400,000) $ 0 $2,800,000 (1,400,000) 1,400,000 (800,000) $ 600,000 $5,600,000 (3,800,000) 1,800,000 (1,200,000) $ 600,000 * Absorption costing with any underabsorbed or overabsorbed overhead written off as an adjustment to cost of goods sold. Kluber applies manufacturing overhead using a predetermined overhead rate based on predicted annual fixed overhead of $2,000,000 and annual production of 200,000 units. Required As the only representative of the minority interest on the board of directors, evaluate the performance of the new management team