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F. Calculate the Net Operating Income (NOI) for each product under both traditional and ABC allocation methods. You must present NOI using the contribution margin
F. Calculate the Net Operating Income (NOI) for each product under both traditional and ABC allocation methods. You must present NOI using the contribution margin income statement (18 points) and Traditional Income Statement Formats (18 points). G. Do both statements produce the same NOI for each product? What is the focus of each income statement? Which one would be recommended for Internal decision making? Are they both allowed under Generally Accepted Accounting Principle? ( 4 points) H. For 2024, I-CAN is planning to ship 1,500 units of Jump, 800 units of Slow, and 500 units of Speed. The company expects an increase in product selling prices by 15% in response to an increase in costs by 10% in 2024. Based on this information, reproduce "Required A,B and C " assuming an estimated 10,800 DLH in 2024 . (9 points, 15 points, 15 points, respectively). I-CAN Company makes three products: Jump, Slow, and Speed. The company presently applies overhead using a predetermined rate based on direct-labour hours. The CFO of the company recommended that I-CAN switch to activity-based costing (ABC) and identified the following activities, cost drivers, estimated costs, and estimated cost-driver units for 2023 for each activity center. In addition, management estimated 10,300 direct-labour hours (DLH) for 2023. Assume that the following activities occurred in February of 2023: F. Calculate the Net Operating Income (NOI) for each product under both traditional and ABC allocation methods. You must present NOI using the contribution margin income statement (18 points) and Traditional Income Statement Formats (18 points). G. Do both statements produce the same NOI for each product? What is the focus of each income statement? Which one would be recommended for Internal decision making? Are they both allowed under Generally Accepted Accounting Principle? ( 4 points) H. For 2024, I-CAN is planning to ship 1,500 units of Jump, 800 units of Slow, and 500 units of Speed. The company expects an increase in product selling prices by 15% in response to an increase in costs by 10% in 2024. Based on this information, reproduce "Required A,B and C " assuming an estimated 10,800 DLH in 2024 . (9 points, 15 points, 15 points, respectively). I-CAN Company makes three products: Jump, Slow, and Speed. The company presently applies overhead using a predetermined rate based on direct-labour hours. The CFO of the company recommended that I-CAN switch to activity-based costing (ABC) and identified the following activities, cost drivers, estimated costs, and estimated cost-driver units for 2023 for each activity center. In addition, management estimated 10,300 direct-labour hours (DLH) for 2023. Assume that the following activities occurred in February of 2023
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