Exercise 13-7A (Algo) Special order decision LO 13-2 Stuart Company manufactures a personal computer designed for use in schools and markets it under ts own label Stuart has the capacity to produce 33.000 units a year but is currently producing and selling only 13.000 units a year The compu price is $1690 per unit with no volume discounts. The unit-level costs of the computer's production are $460 N for drect labor and $10 for indirect unit level manufacturing The total product and t the year are expected to be $2.350.000 and $800.000 respectively Assume that Suat rece 3030 computers at $1240 each Required vel costs Calculate the contribution to profit from the special order. Should Start accept of the special order? selling 5290 during Exercise 13-16A (Algo) Identifying avoidable cost of a segment LO 13-4 Runde Corporation is considering the elimination of one of its segments. The segment incurs the blowing fed cost is eliminated, the building it uses will be sold. the segment Exercise 13-19A (Algo) Asset replacement decision LO 13-5 Adams Company is considering the replacement of some of its manufacturing equipment formation regarding the existing equipment and the potential replacement equipment follows "The amounts shown for operating expens Check "The amounts shown for operating expenses are the cumulative total of all such expected expenses to be incurred over of the equipment Required Calculate the total relevant cost of existing equipment and the potential replacement equipment. Should the equipment be replaced? Gid Should the gone be replaced www Exercise 13-7A (Algo) Special order decision LO 13-2 Stuart Company manufactures a personal computer designed for use in schools and markets it under its own label. Stuart has the capacity to produce 33,000 units a year but is currently producing and selling only 13,000 units a year. The computer's normal selling price is $1,690 per unit with no volume discounts. The unit-level costs of the computer's production are $460 for direct materials. $280 for direct labor, and $110 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Stuart during the year are expected to be $2.150,000 and $800,000, respectively. Assume that Stuart receives a special order to produce and sell 3,030 computers at $1,240 each. Calculate the contribution to profit from the special order. Should Stuart accept or reject the special order? Required 3 ences Contribution to profit Should Stuart accept or reject the special order? Exercise 13-16A (Algo) Identifying avoidable cost of a segment LO 13-4 Rundle Corporation is considering the elimination of one of its segments. The segment incurs the following fixed costs. If the segment Is eliminated, the building it uses will be sold. Advertising expense Supervisory salaries Allocation of companywide facility-level costs Original cost of building Book value of building Market value of building Maintenance costs on equipment Real estate taxes on building Required $ 89,000 174,000 59,000 120,000 64,000 98,000 73,000 6,000 Determine the amount of avoidable cost associated with the segment. Avoidable cost Exercise 13-19A (Algo) Asset replacement decision LO 13-5 Adams Company is considering the replacement of some of its manufacturing equipment. Information regarding the existing equipment and the potential replacement equipment follows. Existing Equipment Replacement Equipment ces Cost $111,000 Cost Operating expenses 111,000 Salvage value 27,000 Market value 48,000 Operating expenses Salvage value Useful life Book value 32,000 Remaining useful life 6 years $121,000 97,000 12,000 6 years "The amounts shown for operating expenses are the cumulative total of all such expected expenses to be incurred over the useful life of the equipment. Required Calculate the total relevant cost of existing equipment and the potential replacement equipment. Should the equipment be replaced? Total Cost Old New Check my wor "The amounts shown for operating expenses are the cumulative total of all such expected expenses to be incurred over the useful life of the equipment. Required Calculate the total relevant cost of existing equipment and the potential replacement equipment. Should the equipment be replaced? Old Total cost Should the equipment be replaced? New