Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blossom Street inc makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 foxed. Because it has unused capacity, Blossom

image text in transcribed
image text in transcribed
image text in transcribed
Blossom Street inc makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 foxed. Because it has unused capacity, Blossom Street is considering finishing the bookcases and selling them for $71. Variable finishing costs are expected to be $6 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Blossom Street should sell unfinished or finished bookcases. (Enter negative amounts using either a negative sign preceding the number es 45 or parentheses es: (450) Sell Process Further Net Income Increase (Decrease) Sales price per unit $ Cost per unit Variable Fixed Total Net Income per unit $ Tembali. The Cycle Division of Swifty Company has the following unit data related to its most recent cycle, the Roadbuster $2,684 Selling price Variable cost of goods sold Body frame Other variable costs Contribution margin $366 1,098 1,464 $1.220 Presently, the Cycle Division buys its body frames from an outside supplier. However Swifty has another division, FrameBody, that makes body frames for other cycle companies. The Cycle Division believes that FrameBody's product is suitable for its new Roadbuster cycle. Presently, FrameBody sells its frames for $427 per frame. The variable cost for FrameBody is $321. The Cycle Division is willing to pay $329 to purchase the frames from FrameBody (a) ) Assume that FrameBody has excess capacity and is able to meet all of the Cycle Division's needs. If the Cycle Division buys 1.220 frames from FrameBody determine the following: (Enter negative amounts using either a negative sin precedine the number 45 (a) -/6 Assume that FrameBody has excess capacity and is able to meet all of the Cycle Division's needs. If the Cycle Division buys 1,220 frames from FrameBody, determine the following: (Enter negative amounts using either a negative sign preceding the numberes.-45 or parentheses es. (451) (1) Effect on the income of the Cycle Division $ (2) Effect on the income of FrameBody $ (3) Effect on the income of Swifty $ eTextbook and Media Save for later Attempts: 0 of 1 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above. DI

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

Step: 3

blur-text-image

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

Food And Beverage Cost Control

Authors: Lea R. Dopson, David K. Hayes

5th Edition

0470251395, 978-0470251393

More Books

Students also viewed these Accounting questions

Question

=+a. Write two different, but related, headlines.

Answered: 1 week ago