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I need help with this assigment, if you can also help me with the formulas so i understand better, that would be great. Clipboard Font
I need help with this assigment, if you can also help me with the formulas so i understand better, that would be great.
Clipboard Font Aline be Syte C TextBox1 A D F 0 4 S Project 6. Incremental Analysis Project (40 Points) 12 1 Bikes "R" Us is a company located in Columbus, OH that makes three different types of bicycles Mourton Bus Road Bikes, and Dat kes 3 2 Bikes "R"Us normally sellises Mountain Bkes to retailers for $1.000 each, es Road Ekes to retailers to $1.500 each, and its but ke sosire for $500 each 10 11 Below is information for manufacturing each type of bike: Mountain Bikes Road Bikes Dirt Bikes 14 Number of Bikes 3.000 2,000 500 15 Materials $150 000 $200,000 $85000 16 Labor 240.000 280.000 100 000 17 Variable Overhead 90.000 30.000 50 000 16 Fixed Overhead 50 000 30 000 19 Total S630 650 $5.95000 $216.000 30 21 Bikes "R"Us is faced with making two important decisions or decision impact the companhe shot dance are AB 54 PART 1 (20 points) Pest Textext 24 PART 1 (20 points) 25 The short- term decision is regarding and they received from a company, New 26 NZBkes would like R' Us to manufacture 10,000 Mountain Blessed 10 per 27 Currently Russels Mountain Bikes to breast curs for $1.000 per te 2 BRUccepts the other NZB would set the bes understand and 29 Bikes "R"Us is currently manufacturing Best Macy and accept the wodos tenerse from 0 to 100 per ty of the factory and extra machinery to manufacture the 10.000 donuts 31 in additions Ruscepts the order, they will veto pay $100.000 in shipping costs and the order is accepted. Bates the top for Buswoude Nasi Gales top hent and came to be with her 34 The CFO of Uw that you are the best at C.COM a) Using Excel, prepare an incrementat analysis for the special order NOTE: In order to receive full credit you must create an increment analysis informed at fort 10 Each formula will be worth 1 point each wp to 4 points 10 (b) Based on your incremental analysis, would you recommend to the CFO of Utjector teeper? Why? cel Assume that Nz Bikes changed the offer to where they would pay for the shipping and sustave to go Using Excel, prepare an incremental analysis for the special order with the new condition 5 NOTE in order to receive full credit you must create an incrementalysis and you * Each formula will be worth point each to 4 points Number D 17 4 d) Based on your incremental analysis with the new shipping condition, would you recommend to the CFO of "R"Us to rejector secepttheory 69 50 31 PART 2 (20 points) 52 The long term decision is regarding the three kes currently produced by Ban Rus 33 S4 Cost Volume-Profit (CVP) information about the threebies is given below. 56 Mountain Bikes Road Bikes Dirt Bikes S7 Sales 3,000,000 $3,000,000 250,000 sa Variable Expenses 180,000 540,000 235.000 5 Contribution Margin 2,520,000 2,400,000 15.000 6 Fixed Expenses 60.650 56.000 20.000 01 Net Income 240915052404000 00 OS When the CFO saw the CVP Information above he www.diately worted to discover and can be coway 04 to Net Income by 515,000 to The Cro came to you asking you to content cropping the Distes de cartone CST. 00 NOTE: If the Dirt Bikes line is dropped, none of the fired costs for the Dirt Bikes would be winted 09 Projects 07 Step by Step Solution
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