Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Homework Incremental Student (1) - Edited 125% TOTOOO co A job of 1,000 VCR'S manufactured by K Corp.contains defective parts. The cost incurred in manufacturing

image text in transcribed
Homework Incremental Student (1) - Edited 125% TOTOOO co A job of 1,000 VCR'S manufactured by K Corp.contains defective parts. The cost incurred in manufacturing these defective units is $140,000. K Corp.can sell these units as scrap materials for $45 per unit or repair all 1,000 units at a total cost of $70,000. If the units are repaired, they can be sold at the normal price of $200 per unit. What will be the total amount of the loss incurred by K Corp. on the sale of these units if they are sold for scrap at $45 per unit? What will be the average perunit manufacturing cost of the VCR, including repair costs, assuming that K Corp. does the repairs? $_ per unit Sharpentine e grave an action What will be the total amount of the loss incurred by K Corp. on the sale of these units if they are repaired and sold for S200 per unit?S Saman d by K Corps on the store What is the relevant cost to K Corp. in deciding whether or not to repair the units? (State this cost as a total amount for all 1,000 units.) Should K Corp.(1) sell the units for scrap or (2) repair the units? Underline the most profitable action, and indicate the amount of the net financial benefit of this action to the company 6. Johnson produces 7.000 skateboards each month, which it sells for $60 each. Variable costs are S25 per unit, and fixed costs are $95,000 per month. A Canadian company has offered to buy an additional 1,000 skateboards for $30 per unit. Assuming that normal sales volume and fixed costs remain unchanged, filling this special order will cause Johnson's operating income to: & Decrease by $30,000 Decrease by 56,250. Decrease by 55,000 d Increase by 55,000. 7. ILF makes 2,000 waterproof mattresses annually to be used in one of its products. The unit cost of the mattresses includes variable costs of $45 and fixed costs of $30. If the mattresses were purchased from an outside supplier, 60% of the fixed costs could be eliminated. Buying mattresses from an outside supplier at aprice of $50 each would cause ILF's operating income to * Increase by S26,000. 29 MacBook Air

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Study Guide With Working Papers, Chapters 1-9 For Heintz/Parrys College Accounting

Authors: James A. Heintz, Robert W. Parry

21st Edition

1285059379, 9781285059372

More Books

Students also viewed these Accounting questions

Question

3. Laugh at the right time for the right time.

Answered: 1 week ago