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Acting on Words: An Integra... Strategic and Competitive A... Introduction to Financial Ac... Managerial Accounting: Tool... Shop Now Q 13 2015 2016 1. Units of LCX1 produced and sold 1,000,000 1,150,000 2. Selling price $27 $25 3. Direct materials (square centimetres 3,000,000 2,900,000 of silicon wafers) 4. Direct material cost per square $1.40 $1.50 centimetre 5. Manufacturing processing capacity 3,750,000 3,500,000 (in square centimetres of silicon wafer) 6. Conversion costs (all manufacturing $16,050,000 $15,225,000 costs other than direct material costs) 7. Conversion cost per unit of capacity $4.28 $4.35 (Row 6+Row 5) 8. R&D employees 40 39 13 W Pg. 10 Pg. 137 Aa # 5 OF\f2015 2016 Revenue ($27 per unit x 1,000,000 units; $25 per unit x 1,150,000 units) $27,000,000 $28,750,000 Costs Direct material costs ($1.40/sq. cm. x 3,000,000 sq. cm.; $1.50/sq. cm. x 2,900,000 sq. cm.) 4,200,000 4,350,000 Conversion costs ($4.28/sq. cm. x 3,750,000 sq. cm.; $4.35/sq. cm. x 3,500,000 sq. cm.) 16,050,000 15,225,000 R&D costs ($100,000 x 40 employees; $100,000 x 39 employees) 4,000,000 3,900,000 Total costs 24,250,000 23,475,000 Operating income $ 2,750,000 $ 5,275,000 Change in operating income $2,525,000 F 13Actual units of Actual units of Selling . output sold output sold >