Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

D Question 11 1 pts Starlight Company manufactures part 2HD for use in its production cycle. The per unit cost for 2,000 units of part

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
D Question 11 1 pts Starlight Company manufactures part 2HD for use in its production cycle. The per unit cost for 2,000 units of part 2HD are as follows: Direct Labor P25 Direct Materials P5 Fixed Overhead P20 Variable Overhead P10 United Supreme has offered to sell Starlight 2,000 units of part 2HD for P50 per unit. If starlight accepts the offer, the released facilities could be used to save P30,000 in relevant costs in its manufacture of part 2 HD.In addition, P10 per unit of fixed overhead applied to part 2 HD would be eliminated. What is the net advantage (disadvantage) of buying part 2HD? Variable Overhead P10 United Supreme has offered to sell Starlight 2,000 units of part 2 HD for 250 per unit. If starlight accepts the offer, the released facilities could be used to save P30,000 in relevant costs in its manufacture of part 2HD. In addition, P10 per unit of fixed overhead applied to part 2 HD would be eliminated. What is the net advantage (disadvantage) of buying part 2HD? OP (30,000) OP 30,000 PO O 70,000 D Question 12 1 pts Premier Corporation sells two models of home ice cream makers, Mister Ice Cream and Cold King. Current sales total 60,000 units, consisting of 21,000 Mister Ice Cream units and 39,000 Cold King units. Selling price and variable cost information follow: Cold King Mr. Ice Cream P37.00 Selling Price Variable Cost P43.00 20.50 32.50 Salespeople currently receive flat salaries that total P200,000. Management is contemplating a change to a compensation plan that is based on commissions in an effort to boost the company's presence in the marketplace. Two plans are under consideration: Plan A: 10% commission computed on gross peso sales. Mister Ice Cream sales are anticipated to be 19,500 units. Cold King sales are expected to total 45,500 units. based on commissions in an effort to boost the company's presence in the marketplace. Two plans are under consideration: Plan A: 10% commission computed on gross peso sales. Mister Ice Cream sales are anticipated to be 19,500 units. Cold King sales are expected to total 45,500 units. Plan B: 30% commission computed on the basis of production contribution margins. Mister Ice Cream sales are expected to total 39,000 units. Cold King sales are anticipated to be 26,000 units How much will be the increase or decrease in the net income of Premier if Plan A will be implemented? OP 74,950 decrease OP 24,300 decrease OP 24,300 increase OP 74,950 increase

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

Using Accounting & Financial InformationAnalyzing, Forecasting, And Decision Making

Authors: Mark S. Bettner

2nd Edition

1947098683, 9781947098688

More Books

Students also viewed these Accounting questions

Question

a. Did you express your anger verbally? Physically?

Answered: 1 week ago

Question

b. Did you suppress any of your anger? Explain.

Answered: 1 week ago