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Current Attempt in Progress Cullumber Company is considering two alternatives. Alternative A will have revenues of $146,200 and costs of $102,500. Alternative B will have
Current Attempt in Progress Cullumber Company is considering two alternatives. Alternative A will have revenues of $146,200 and costs of $102,500. Alternative B will have revenues of $163,200 and costs of $120,900. Compare Alternative A to Alternative B showing incremental revenues, costs, and net income. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Alternative A Alternative B Net Income Increase (Decrease) Revenues $ $ $ Costs Net Income $ $ $ is better than At Blossom Electronics, it costs $29 per unit ($15 variable and $14 fixed) to make an MP3 player that normally sells for $40.A foreign wholesaler offers to buy 3,200 units at $28 each. Blossom Electronics will incur special shipping costs of $2 per unit. Assuming that Blossom Electronics has excess operating capacity, indicate the net income (loss) Blossom Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Reject Order Accept Order Net Income Increase (Decrease) $ $ $ Revenues Costs-Variable manufacturing Shipping $ $ $ Net income The special order should be e Textbook and Media Current Attempt in Progress Cullumber Industries incurs unit costs of $7 ($5 variable and $2 fixed) in making an assembly part for its finished product. A supplier offers to make 14,700 of the assembly part at $6 per unit. If the offer is accepted, Cullumber will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, that Cullumber will realize by buying the part. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Net Income Increase (Decrease) Make Buy Variable manufacturing costs $ $ Fixed manufacturing costs Purchase price Total annual cost $ $ $ The decision should be to the part. e Textbook and Media
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