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i need help on how to do this problems please 20. Baylee Company had the following results for the last year: UNITS COST January 2,100
i need help on how to do this problems please
20. Baylee Company had the following results for the last year: UNITS COST January 2,100 $70,000 February 2,120 $73,100 March 2,130 572,600 April 1,590 $61,700 May 1.300 $49.500 June 1.030 $50,600 July 1.650 $63,250 August 1,610 $62,560 September 1.590 $61,900 October 1.430 $59200 November 2,110 $71,300 December 2,100 $71 800 Baylee wishes to estimate what their total costs would be if they sold 1,750 units, 2000 units, and 2,250 units. Estimate Baylee's cost function and use it to predict costs at all three cost levels. 1 LECTURE EXAMPLE Toastem manufactures small appliances. The costs of manufacturing these appliances are listed below. Toastem has received a special order for 2.400 toasters from an appliance retailer whose usual supplier cannot supply the toasters because of a labor strike. Toastem would not incur any variable marketing costs on the special order. The retailer has offered Toaster S10 per toaster. Toastem normally charges S13 per toaster. The following costs are based on a production level of 30,000 toasters per year. PER UNIT TOTAL $ 3.00 350 2.50 1.50 $10.50 590.000 105.000 75.000 45.000 $315.000 Manufacturing costs: Direct labor Direct materials Variable overhead Fixed overhead Total Marketing costs Variable marketing Fixed marketing Total Total product costs 5 1.00 0.75 $ 175 $1225 $ 30,000 22.500 $ $2.500 $367 500 If Toastem has the capacity to produce 35,000 toasters per year, should they accept the special order? If Toastem has the capacity to produce 30,000 toasters per year, should they accept the special order? 11. COMPLETE PROBLEMS 10. Rosewood Company, which regularly sells 40,000 units per year, is trying to des whether to accept a special order for 4,000 units from Teak Corporation. Rosewood ally charges S50 per unit for their product, which includes $10 in direct materials, in direct labor, $12 in variable overhead, and $8 in fixed overhead. The order from te Corporation would require modifications that would cost $7 per unit, but Teak is. willing to pay the normal $50 price per unit. a. Rosewood has the capacity to produce 45,000 units per year. Determine whether would be financially beneficial to accept the order, and calculate the net benefit. obs b. Rosewood has the capacity to produce 40,000 units per year. Determine whether it would be financially beneficial to accept the order, and calculate the net benefit. 5. Robotechnology Corporation currently manufactures all parts of their product. The form is trying to decide whether to purchase circuitry from an outside manufacturer instead follow making the circuitry. Current monthly costs to manufacture the circuitry are as Direct materials Direct labor Variable overhead Fixed overhead Total $15,000 26,000 19,000 23,000 $83,000 The outside supplier would charge $75,000 for the circuitry. If Robotechnology did not manufacture the circuitry, they could use the current manufacturing space for storage that currently costs the company $10,000 offsite. Decision alternatives are to make or buy the circuitry. Place the relevant costs and benefits of each alternative in the columns Step by Step Solution
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