Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 54,000 units of RX5 follows. Direct materials Direct labor Overhead Total costs per unit DOMES Direct materials and direct labor are 100% variable Overhead is 80% fixed. An outside supplier has offered to supply the 54,000 units of RX5 for $2000 per unit Required: 1. Calculate the incremental costs of making and buying component RX5. Making the units Buying the units Total incremental costs of: Total direct materials Total direct labor Variable overhead co Direct materials and direct labor are 100% variable. Overhead is 80% fored. An outside supplier has offered to supply the 54,000 units of RX5 for $20.00 per unit. Required: 1. Calculate the incremental costs of making and buying component RX5 Doints Making the units Buying the units Total incremental costs of: Total direct materials Total direct labor Ivarlak verhead coach Total costs Should the company continue to manufacture the part of should buy the part from the outside sur ? Help Save & Exits 12 Harold Manufacturing produces denim clothing. This year, it produced 5150 denim jackets at a manufacturing cost of $42.00 each These jackets were damaged in the warehouse during storage. Management investigated the matter and identified three alternatives for these jackets 1. Jackets can be sold to a secondhand clothing shop for $8.00 each 2 Jackets can be disassembled at a cost of $31.200 and sold to a recycler for $11.00 each 3. Jackets can be reworked and turned into good jackets. However, with the damage, management estimates it will be able to assemble the good parts of the 5150 jackets into only 3,020 jackets. The remaining pieces of fabric will be discarded. The cost of reworking the jackets will be $102,900, but the jackets can then be sold for their regular price of $44.00 each Required: 1. Calculate the incremental income Alternative 1 Sell to a second hand shop Alternative 2 Alternative Disassemble and Rework and sell at to recycler regular prices s 13. Edgerton Company is able to produce two products, G and B, with the same machine in its factory. The following information is available Product G $160 Selling price per unit Variable costs per unit Contribution margin per unit Machine hours to produce 1 unit Maximum unit sales per month Products $ 190 114 $ 76 1.0 hours 200 units points 595 0.4 hours 550 units The company presently operates the machine for a single eight-hour shift for 22 working days each month Management is thinking about operating the machine for two shifts, which will increase its productivity by another eight hours per day for 22 days per month This change would require $9,500 additional fixed costs per month (Round hours per unit answers to 1 decimal place. Enter operating losses, if any, as negative values.) 1. Determine the contribution margin per machine hour that each product generates Product G Contribution margin per unit Product B Contribution margin per machine hour Product G Product B Total Maximum number of units to be sold Exam #2 (CA 7-12) 1 550 200 Maximum number of units to be sold Hours required to produce maximum units Doints 2. How many units of Product G and Product should the company produce if it continues to operate with only one shit? How much total contribution margin does this mix produce each month? Product Product B To Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin-one shift 3. If the company adds another shift, how many units of Product G and Product B should it produce? How much total contribution margin would this mix produce each month? Product Product B Total Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin-two shifts Cadil 2C -12 Saved points 4. Suppose that the company determines that it can increase Product G's maximum sales to 600 units per month by spending $8,500 per month in marketing efforts. Should the company pursue this strategy and the double shit? Product Product B Total Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin-two shifts and marketing campaign