Chapter #13 - Quiz i Saved Help Save & Ex Mountain Total Dirt Bikes Bikes Racing Bikes Sales $ 934, 000 $ 268, 000 $ 408, 000 $ 258, 000 Variable manufacturing and selling expenses 477 , 000 117,000 201, 000 159 , 000 Contribution margin 457, 000 151, 000 207,000 99 ,000 Fixed expenses : Advertising, traceable 68, 600 8 , 300 40, 200 20 , 100 Depreciation of special equipment 44 , 200 20 , 600 7, 700 15, 900 eBook Salaries of product-line managers 114, 800 40 , 700 39 , 000 35 , 100 Allocated common fixed expenses* 186 , 800 53, 600 81, 600 51 , 600 Hint Total fixed expenses 414 , 400 123, 200 168 , 500 122 , 700 Net operating income (loss) $ 42, 600 $ 27, 800 $ 38 ,500 $ (23, 700) *Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? 2. Should the production and sale of racing bikes be discontinued? 3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Required 1 Required 2 > Mc Prev 1 of 5 Next > Graw :........: HillChapter #13 - Quiz i Saved Help Save & Exit Mountain Total Dirt Bikes Bikes Racing Bikes Sales $ 934, 000 $ 268, 000 $ 408,000 $ 258, 000 Variable manufacturing and selling expenses 477 , 000 117, 000 201, 000 159 , 000 Contribution margin 457, 000 151, 000 207,000 99 , 000 Fixed expenses : Advertising, traceable 68 , 600 8, 300 10 , 200 20, 100 Depreciation of special equipment 44 , 200 20, 600 7, 700 15 , 900 eBook Salaries of product-line managers 114 , 800 40, 700 39 ,000 35 , 100 Allocated common fixed expenses* 186, 800 53 , 600 81, 600 51 , 600 Hint Total fixed expenses 414, 400 123 , 200 168 , 500 122, 700 Net operating income (loss) $ 42, 600 $ 27 , 800 $ 38, 500 $ (23, 700) *Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? 2. Should the production and sale of racing bikes be discontinued? 3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Should the production and sale of racing bikes be discontinued? OYes ONO Prey 1 of 5 Next > Mc Graw HillChapter #13 - Quiz i Saved Help Save & Exit Su the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? 2. Should the production and sale of racing bikes be discontinued? 3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines. eBook Complete this question by entering your answers in the tabs below. Hint Required 1 Required 2 Required 3 Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines. Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) Traceable fixed expenses: Total traceable fixed expenses + Product line segment margin (loss) Net operating income (loss) Required 2 Required 3 Mc Graw DII DD AChapter #13 - Quiz i Saved Help Save & Exit Submit Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the 2 necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $30 per unit. To evaluate this offer, Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor internally: Per 12 , 000 Units Unit Per Year Direct materials $ 12 $ 144 , 000 eBook Direct labor 8 96 , 000 Variable manufacturing overhead 24, 000 Hint Fixed manufacturing overhead, traceable 9* 108,000 Fixed manufacturing overhead, allocated 12 144, 000 Total cost 43 $ 516, 000 One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 12,000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to launch a new product. The segment margin of the new product would be $120,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 12,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 12,000 carburetors from the outside supplier? Required 1 Required 2 > Mc Graw DII DD 888 FB FO F3 F4 F5Chapter #13 - Quiz i Saved Help Save & Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the 2 necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $30 per unit. To evaluate this offer, Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor internally: Per 12,000 Units Unit Per Year Direct materials $ 12 $ 144, 000 eBook Direct labor 8 96, 000 Variable manufacturing overhead 2 24 , 000 Hint Fixed manufacturing overhead, traceable 9* 108 ,000 Fixed manufacturing overhead, allocated 12 144, 000 Total cost $ 43 $ 516, 000 One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 12,000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to launch a new product. The segment margin of the new product would be $120,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 12,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Should the outside supplier's offer be accepted? OYes ONO Mc Graw HillmyMU Account o HubSpot Academy a Prime Video - Am... Chapter #13 - Quiz i Saved Help Save & Exit Submit 2 Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $30 per unit. To evaluate this offer, Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor internally: Per 12,000 Units Unit Per Year eBook Direct materials $ 12 $ 144 , 000 Direct labor 8 96, 000 Hint Variable manufacturing overhead 2 24, 000 Fixed manufacturing overhead, traceable 108 , 000 Fixed manufacturing overhead, allocated 12 144, 000 Total cost $ 43 $ 516, 000 One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 12,000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to launch a new product. The segment margin of the new product would be $120,000 per year. Given this new assumption, what would be the financial advantage disadvantage) of buying 12,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Suppose that if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to launch a new product. The segment margin of the new product would be $120,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 12,000 carburetors from the outside supplier? Mc Graw Hill DD DII DD FBChapter #13 - Quiz i Saved Help Save & Exit Submit 2 Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $30 per unit. To evaluate this offer, Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor internally: Per 12,000 Units Unit Per Year Direct materials $ 12 $ 144, 000 eBook Direct labor 8. 96 , 000 Variable manufacturing overhead 2 24 ,000 Hint Fixed manufacturing overhead, traceable 9 * 108 , 000 Fixed manufacturing overhead, allocated 12 144, 000 Total cost $ 43 $ 516, 000 One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 12,000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to launch a new product. The segment margin of the new product would be $120,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 12,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Given the new assumption in requirement 3, should the outside supplier's offer be accepted? OYes ONO Mc Mc Graw Hill DO DII DDChapter #13 - Quiz i Saved Help Save & Exit Sub 3 Imperial Jewelers manufactures and sells a gold bracelet for $407.00. The company's accounting system says that the unit product cost for this bracelet is $269.00 as shown below: Direct materials $ 148 Direct labor 83 Manufacturing overhead 38 Unit product cost $ 269 eBook Hint The members of a wedding party have approached Imperial Jewelers about buying 24 of these gold bracelets for the discounted price of $367.00 each. The members of the wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $8. Imperial Jewelers would also have to buy a special tool for $468 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $9.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party's order using its existing manufacturing capacity. Required: 1. What is the financial advantage (disadvantage) of accepting the special order from the wedding party? 2. Should the company accept the special order? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Should the company accept the special order? OYes NO 4 Required 1 Mc Graw Hill DD