Hello,
Can you please help with these questions. Ive tried to work 2 of the out but I couldn'
Wilma Company must decide Whether to make or buy some of its components . The costs of producing 50, 500 switches For its generators are as follows . direct materials $ 29, 500 Variable overhead $4 4, 400 Direct labor $ 21 , 480 Fixed overhead 583, 500 Instead of making the switches at an average cost OF $ 2. 95 15 175, 080 . 50, 50 0'), the company has an opportunity to buy the Switches at $ 2. 70 per unit . If the company purchases the switches , all the variable costs and one - Fourth of the Fixed costs will be* eliminated . ( E ) # Prepare an incremental analysis showing whether the company should buy the switches . ( Enter negative amounts using either a negative sign preceding the number &.q. - 45 or parentheses e. g. ( 45).) Net Income Make BUY Increase ( Decrease ) Direct materials 2950 0 29500 Direct labor 21480 -21980 Variable manufacturing costs $4400 $4 400 Fixed manufacturing costs $3500 $4400 -39200 Purchase Price 163350 163350 Total cost 179080 207 750 28670 Wilma Company will incur $ of additional costs if it! *\\ the switches .Maize Company incurs a Cost of $ 34. 5 1 per Unit , Of which &CO. IS is Variable , to make a product that normally' SELLS For $ 57. 35. A foreign wholesaler offers to buy' 6, 100 units at $ 30. 1? each . Maize will incur additional costs of $ 1. 09 per unit to imprint & logo and to pay for shipping . Compute the increase or decrease in net income Maize will realize by accepting the special order , assuming Maize has sufficient excess operating capacity . (Enter negative amounts using either a negative sign preceding the number &.q. - $5 or parentheses &.J. ( 45).) Net Income Reject Accept Increase ( Decrease ) REVENUES 57. 35 30. 17\\ -27. 19 Costs 34. 51 21 . 22\\ -13 . 29 Net income 22. 84 8. 95 13. 50 Should Maize Company' accept the special order ?" Maize Company should! ACCEPT* the special order .Gator Corporation Manufactures Several TYPES Of ACCESSONES . For the Year , the gloves and mittens line Had Sales Of $4 08, 0010 , variable EXPENSES OF $ 352, 000 , and Fixed expenses OF $ 150, 000. Therefore , the gloves and mittens line had a net loss OF $ 24, 000 . IF Gator eliminates the line , $ 38 , 000 of Fixed costs will remain . Prepare an analysis showing whether the company should Eliminate the gloves and mittens line . (Enter negative amounts using either a negative sign preceding the number e. g. - $5 or parentheses &.g. ( 45).) Net Income Continue Eliminate* Increase ( Decrease ) Sales Variable costs Contribution margin Fixed costs Net income !' ( LOSS ) THE analysis indicates that Gator should * the gloves and mittens line