For this Case Study complete the four requirements below:

1. 1. 1. ABC Airlines has determined both the fixed and variable costs per flying hour associated with flying each of the 10 different types of aircraft in their fleet. How might this type of information be useful in determining the costs associated with flying different aircraft on specific routes?
   2. 2. You are a management analyst for XYZ aircraft manufacturing company. Your company is considering either to purchase or lease manufacturing equipment. Identify, discuss, and be specific on five differential costs that might exist between the two options. You can develop any assumptions you want for either alternative, but if you do, they should be explained.
   3. 3. List and discuss three costs that are likely to be controllable by a citys airport manager. List three costs that are likely to be uncontrollable by the manager.
   4. 4.RefertoProblem2-43attheendofChapter2.BuildoruseanexistingExcelSpreadsheetandcompleterequirements1and2.Thespreadsheetmustaccompanythesubmission.
   5. Reference below:

Hilton, R. W. (2014). Managerial accounting (10th ed.). New York: McGraw-Hill Irwin.

For this case study, you will demonstrate your ability to correctly calculate the problem and demonstrate creative thinking by analyzing the case and answering the questions that are intended to interpret the data.

Problem2-43 page 67

The following data refer to Laredo Luggage Company for the year 20x2:

Sales revenue $475,000

Work-in-process inventory, December 31 15,000

Work-in-process inventory, January 1 20,000

Selling and administration expenses75,000

Income tax expenses45,000

Purchases of raw material 90,000

Raw-material inventory, December 31 12,500

Raw-material inventory, January 120,000

Direct labor100,000

Utilities: plant20,000

Depreciation: plant and equipment 30,000

Finished-goods inventory, December 31 25,000

Finished-goods inventory, January 1 10,000

Indirect material used 5,000

Indirect labor 7,500

Other manufacturing overhead 40,000

Required:

1. Prepare Laredo Luggage's schedule of cost of goods manufactured for the year.

2. Prepare Laredo Luggage's schedule of cost of goods sold for the year.

3. Prepare Laredo Luggage's income statement for the year.

4. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements. Show how both cost schedules and the income statement will change if raw-material purchases amounted to $92,000 and indirect labor was $9,000.

Problem 02-43 Student Name: Class: Enter appropriate solution in the yellow cells. An asterisk (*) to the right indicates an incorrect amount. Part 1 Laredo Luggage Company Schedule of Cost of Goods Manufactured For the Year Ended December 31, 20X2 Direct Materials: Raw-material inventory, January 1 Add: Purchases of raw material Raw material available for use Deduct: Raw-material inventory, December 31 Raw materials used Direct labor Manufacturing overhead: Indirect Material Indirect Labor Utilities:Plant Depreciation Other Total manufacturing overhead Total manufacturing costs Add: Work-in-process, January 1 Subtotal Deduct Work-in-process, December 31 Cost of goods manufactured * * * * * * * * * * * * * * * * * Part 2 Laredo Luggage Company Schedule of Cost of Goods Sold For the Year Ended December 31, 20X2 Beginning inventory, finished goods Add: Cost of Goods Manufactured Cost of goods available for sale Deduct: Ending inventory, finished goods * * * * Cost of goods sold * Part 3 Laredo Luggage Company Income Statement For the Year Ended December 31, 20X2 Sales Revenue Less Cost of Goods Sold Gross margin Selling and administrative expenses Income before taxes Income tax expense Net income * * * * * * * Part 4 In the electronic version of the solutions manual, press the CTRL key and click on the link: 10E - BUILD A SPREADSHEET 02-43.XLS