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Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing

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Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows: 1 Variable costs per unit: 1 Direct materials $120.00 Direct labor 50.00 Factory overhead 50.00 Selling and administrative expenses 3500 Total variable cost per unit 5235.00 11 AM V 2019 Final Question Fixed costs: Factory overhead Selling and administrative expenses $250,000.00 150,000.00 . Crystal Displays Inc. is currently considering establishing a selling price for flat panel displays. The president of Crystal Displays has decided to use the cost-plus approach to product pricing and has indicated that the displays must earn a 15% return on invested assets. Required: 1. Determine the amount of desired profit from the production and sale of flat panel displays 2 Assuming that the product cost method in una determine tal the cost amount na unit me markun err or and the line orice of Points SUS Instructions Required: 1. Determine the amount of desired profit from the production and sale of flat panel displays 2. Assuming that the product cost method is used determine (a) the cost amount per unit, (b) the markup percentage, and (c) the selling price of flat panel displays. 3. (Appendix) Assuming that the total cost method is used, determine (a) the cost amount per unit, (b) the markup percentage, and (c) the selling price of flat panel displays 4. (Appendix) Assuming that the variable cost method is used, determine (a) the cost amount per unit (b) the markup percentage, and (c) the selling price of flat panel displays. 5. Comment on any additional considerations that could influence establishing the selling price for flat panel displays 6. Assume that as of August 1, 3,000 units of flat panel displays have been produced and sold during the current year. Analysis of the domestic market indicates that 2,000 additional units are expected to be sold during the remainder of the year at the normal product price determined under the product cost method On August 3, Crystal Displays Inc received an offer from Maple Leaf Visual Inc for 800 units of flat panel Uncome (Alternative 1) (Alternative 2) (Alternative eBook Calculator Instructions 6. Assume that as of August 1, 3,000 units of flat panel displays have been produced and sold during the current year. Analysis of the domestic market indicates that 2,000 additional units are expected to be sold during the remainder of the year at the normal product price determined under the product cost method On August 3, Crystal Displays Inc. received an offer from Maple Leaf Visual Inc. for 800 units of flat panel displays at $225 each. Maple Leaf Visual Inc. will market the units in Canada under its own brand name, and no variable selling and administrative expenses associated with the sale will be incurred by Crystal Displays Inc. The additional business is not expected to affect the domestic sales of flat panel displays, and the additional units could be produced using existing factory, selling, and administrative capacity a. Prepare a differential analysis of the proposed sale to Maple Leaf Visual Inc. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter " A colon () will automatically appear if required. b. Based on the differential analysis in part (a), should the proposal be accepted? "Round your markup percentage to two decimal places and your final answer to nearest dollar amount UIT Come (Alternative 11 (Alterative 2) (Alternative 21 Starting Questions Shaded cels have to 1. Determine the amount of desired profit from the production and sale of flat panel displays $225,000.00 Points: 2. Assuming that the product cost method is used determine (a) the cost amount per unit (b) the markup percentage, and (c) the selling price of fat panel displays $250.00 Cost amount per unit Markup percentage Selling price 4400V $360.00 Points 3. (Appendix) Assuming that the total cost method is used determine (a) the cost amount per unit (b) the markup percentage and (c) the selling once of a panel displays Round your markup percentage to two decimal places and your final anteriores dolar amount Og Starting Questions Shaded cels have feeds 3. (Appendix) Assuming that the total cost method is used, determine (a) the cost amount per unit (b) the markup percentage, and (c) the selling price of tot panel displays. Round your markup percentage to two decimal places and your final answer to nearest dollar amount Cost amount per unit Markup percentage $315.00 1429 $360,00 % Selling price Points 313 the selling price of a panel 4. (Append) Assuming that the varie cost method is used determine (a) the cost amount perunt. (b) the markup percentage and displays Round your markup percentage to two decimal places and your final answer to nearest dolar amount Cost amount per unit Markup percentage Selling price $235.00 53.19 % 5360.00 11:42 AN og Pa 6a. Prepare a differential analysis of the proposed sale to Maple Leaf Visual Inc. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon () will automatically appear if required. Differential Analysis Score: 37/53 Reject (Alternative 1) or Accept (Alternative 2) Order August 3 Reject Order Accept Order Differential Effect on Income Alternative 21 (Alternative 1 Alternative Differential Analysis Score: 37/53 Reject (Alternative 1) or Accept (Alternative 2) Order August 3 Reject Order Accept Order (Alternative 1) $0.00 Differential Effect on Income (Alternative 2) $180,000.00 (Alterative 2) $180,000.00 3 Revenues Costs: Variable manufacturing costs 0.00 6 Income (loss) $0.00 o i S pa

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