Exercise 7.4 Klean Fiber Company is the creator of Y.Go, a technology that waves sver into its fabrics to bacteria and odor on clothing while managing heat. Y.Go has become very popular in undergarments for sports activities Operating capacity, the company can produce 1,079.000 Y Go undergarments a year. The per unit and the total costs for an individual garment when the company operates a fully are as follows Per Total Undergarment Direct materials $2.06 12,222,740 Direct labor 0.43 463,970 Variable manufacturing overhead 1.04 1.122.160 Fixed manufacturing overhead 1,521.390 Variable selling expenses 399,230 $5.31 55.729.490 The US Army has approached Kean Fiber and expressed an interest in purchasing 249.600 Y.Go undergarments for soldiers in extremely warm mates. The Army would say that cost for Grect materas, rector and table maturing overhead costs. In addition, the Army has agreed to pay in addition 1.01 per vergarment to cover all other costs and provide a protesten er is operating 70% cast and does not have any other potential buyers for Y.Go. Klean be accept the Armys offer it will not incur any variable ingenes related to this ordet Prepare an incremental analysis for the an Tibet (Enter negative amounts using either a negative in preceding the number or parentheses. (433) Net Income Reject Accept Trease Order Order (Decrease) 0.37 Reves Variable costs Direct materials Direct labor Reject Order Accept Order Net Income Increase (Decrease) Revenues $ $ $ Variable costs: Direct materials Direct labor Variable overhead Total variable costs Net income Should Klean Fiber accept the Army's offer? Klean Fiber should the Army's offer LINK TO TEXT Exercise 7-13 a-b (video) On January 2, 2019, Twilight Hospital purchased a $98,400 special radiology scanner from Bella Inc. The scanner had a useful le of years and was estimated to have no disposal value at the end of the straight line method of depreciation is used on this scanner. Annual operating costs with this scanner are $106,000 Approximately one year later, the hospital is approached by Dyno Technology salesperson, Jacob Cullen, who indicated that purchasing the scanner in 2019 from Bella Inc. was a mistake. I points out that Dyno has a scanner that will save Twilight Hospital $26,000 a year in operating expenses over its 3-year seacob notes that the new scanner will cost $111,000 and has the same capabilities as the scanner purchased last year. The hospitalspres that both scanner are of equal quality. The new scanner will have no disposal value Jacob agrees to buy the old scanner from Twilight Hospital for 145,000. If Twilight Hospital ses its old scanner on January 2, 2020, compute the gener loss on the sale LIETOTNE VIDEO SIMILAREERIM Prepare an incremental analysis of Twilight Hospital (In the first two columns, enter costs and expenses as positive amounts, and any amounts received as negative amounts in the third com enter net come increases as positive amounts and decreases as negative amounts. Enter negative amount in either a negative sin preceding the number..-45 parentheses (45). Net Income Retain Replace Increase Scanner (Decrease) Annual operating costs New scanner cost Old scanner salvage Prepare an incremental analysis of Twilight Hospital. (In the first two columns, enter costs and expenses as positive amounts, and any amounts received as negative amounts. In the third column, enter net income Increases as positive amounts and decreases as negative amounts. Enter negative amounts using either a negative sige preceding the number eg.-45 of parentheses e.g. (45).) Net Income Retain Replace Increase Scanner Scanner (Decrease) Annual operating costs $ $ New scanner cost Old scanner salvage Total Should Twilight Hospital purchase the new saper on January 2, 20207 Cawley Company makes three models of tasers Information on the three products is given below. Tingler Shocker Stunner Sales 3296,000 $504,000 $200,000 Variable expenses 145,000 190.000 135.000 Contribution margin 151.000 314,000 65,000 Fixed expenses 114,840 225,160 Net income $36.160 $88,840 127.000) 92.000 Fixed expenses consist of $290,000 of common costs located to the three products based on relative sales, as well as directed expenses unique to each model of 529.000 (ger). 579.000(Shor)and $4.000 (turner) The common costs will be incurred regardless of how many models are produced. The directed expenses would be eliminated that model is phased out James Watt, an executive with the company, feels the stunner line should be discontinued to increase the company's net income (a) Compute current net income for Canley Company Net Income (1) Compute net income by product line and in total for Cawley Company of the comany continue the tunne product in the Act 200,000 como co to the term need Tingler Net Income 5 Shocker Nettncome A DIV of Bohn Wiley Sonne (b) Compute net income by product line and in total for Cawley Company of the company discontinues the stunner product line. (Hint: Alocate the $200,000 common costs to the two remaining product is based on the relatives.) Tingler Net Income $ Shocker Net Income 1 Total Net Income $ Should Cawley eliminate the stunner product line? Why or why not from to Net Income would Exercise 7.4 Klean Fiber Company is the creator of Y.Go, a technology that waves sver into its fabrics to bacteria and odor on clothing while managing heat. Y.Go has become very popular in undergarments for sports activities Operating capacity, the company can produce 1,079.000 Y Go undergarments a year. The per unit and the total costs for an individual garment when the company operates a fully are as follows Per Total Undergarment Direct materials $2.06 12,222,740 Direct labor 0.43 463,970 Variable manufacturing overhead 1.04 1.122.160 Fixed manufacturing overhead 1,521.390 Variable selling expenses 399,230 $5.31 55.729.490 The US Army has approached Kean Fiber and expressed an interest in purchasing 249.600 Y.Go undergarments for soldiers in extremely warm mates. The Army would say that cost for Grect materas, rector and table maturing overhead costs. In addition, the Army has agreed to pay in addition 1.01 per vergarment to cover all other costs and provide a protesten er is operating 70% cast and does not have any other potential buyers for Y.Go. Klean be accept the Armys offer it will not incur any variable ingenes related to this ordet Prepare an incremental analysis for the an Tibet (Enter negative amounts using either a negative in preceding the number or parentheses. (433) Net Income Reject Accept Trease Order Order (Decrease) 0.37 Reves Variable costs Direct materials Direct labor Reject Order Accept Order Net Income Increase (Decrease) Revenues $ $ $ Variable costs: Direct materials Direct labor Variable overhead Total variable costs Net income Should Klean Fiber accept the Army's offer? Klean Fiber should the Army's offer LINK TO TEXT Exercise 7-13 a-b (video) On January 2, 2019, Twilight Hospital purchased a $98,400 special radiology scanner from Bella Inc. The scanner had a useful le of years and was estimated to have no disposal value at the end of the straight line method of depreciation is used on this scanner. Annual operating costs with this scanner are $106,000 Approximately one year later, the hospital is approached by Dyno Technology salesperson, Jacob Cullen, who indicated that purchasing the scanner in 2019 from Bella Inc. was a mistake. I points out that Dyno has a scanner that will save Twilight Hospital $26,000 a year in operating expenses over its 3-year seacob notes that the new scanner will cost $111,000 and has the same capabilities as the scanner purchased last year. The hospitalspres that both scanner are of equal quality. The new scanner will have no disposal value Jacob agrees to buy the old scanner from Twilight Hospital for 145,000. If Twilight Hospital ses its old scanner on January 2, 2020, compute the gener loss on the sale LIETOTNE VIDEO SIMILAREERIM Prepare an incremental analysis of Twilight Hospital (In the first two columns, enter costs and expenses as positive amounts, and any amounts received as negative amounts in the third com enter net come increases as positive amounts and decreases as negative amounts. Enter negative amount in either a negative sin preceding the number..-45 parentheses (45). Net Income Retain Replace Increase Scanner (Decrease) Annual operating costs New scanner cost Old scanner salvage Prepare an incremental analysis of Twilight Hospital. (In the first two columns, enter costs and expenses as positive amounts, and any amounts received as negative amounts. In the third column, enter net income Increases as positive amounts and decreases as negative amounts. Enter negative amounts using either a negative sige preceding the number eg.-45 of parentheses e.g. (45).) Net Income Retain Replace Increase Scanner Scanner (Decrease) Annual operating costs $ $ New scanner cost Old scanner salvage Total Should Twilight Hospital purchase the new saper on January 2, 20207 Cawley Company makes three models of tasers Information on the three products is given below. Tingler Shocker Stunner Sales 3296,000 $504,000 $200,000 Variable expenses 145,000 190.000 135.000 Contribution margin 151.000 314,000 65,000 Fixed expenses 114,840 225,160 Net income $36.160 $88,840 127.000) 92.000 Fixed expenses consist of $290,000 of common costs located to the three products based on relative sales, as well as directed expenses unique to each model of 529.000 (ger). 579.000(Shor)and $4.000 (turner) The common costs will be incurred regardless of how many models are produced. The directed expenses would be eliminated that model is phased out James Watt, an executive with the company, feels the stunner line should be discontinued to increase the company's net income (a) Compute current net income for Canley Company Net Income (1) Compute net income by product line and in total for Cawley Company of the comany continue the tunne product in the Act 200,000 como co to the term need Tingler Net Income 5 Shocker Nettncome A DIV of Bohn Wiley Sonne (b) Compute net income by product line and in total for Cawley Company of the company discontinues the stunner product line. (Hint: Alocate the $200,000 common costs to the two remaining product is based on the relatives.) Tingler Net Income $ Shocker Net Income 1 Total Net Income $ Should Cawley eliminate the stunner product line? Why or why not from to Net Income would