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Can you help to solve these problems, please? 1. Viking Corporation is operating at 80% of capacity, which means it produces 8,000 units. Variable cost
Can you help to solve these problems, please?
1. Viking Corporation is operating at 80% of capacity, which means it produces 8,000 units. Variable cost is $100 per unit. Wholesaler Y offers to buy 2,000 additional units at $120 per unit. Wholesaler Z proposes to buy 1,500 additional units at $140 per unit. Which offer, if either, should Viking Corporation accept? Fixed costs are not affected by accepting either offer.
2.
Problem 16-5 Decide whether to process further or sell joint products LO. 6) Sierra Lumber Company produces lumber. The company has two grades of lumber at the split-off point, A and B. Grade A sells for $4 per board foot and Grade B sells for $2 per board foot. This lumber is suitable for framing and most exterior work but not for the interior of buildings. Either grade can be further processed to make it suitable for interior work at a cost of $1.20 per board foot. After this further processing, the firm can sell Grade A lumber for $5.50 per board foot and Grade B for $3.00 per board foot. REQUIRED Would you recommend the company sell the lumber at the split-off point or process it further to make it suitable for interior work? Explain and give sup- porting computationsStep by Step Solution
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