Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Instructions Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,700,000 in assets. The costs of

image text in transcribed
image text in transcribed
Instructions Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,700,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows: 1 Variable costs per unit: 2 Direct materials $119.00 3 Direct labor 32.00 50.00 3 Factory overhead Selling and administrative expenses Total variable cost per unit 36,00 $257,00 Fixed costs: Factory overhead 253,000.00 147,000.00 Selling and administrative expenses Crystal Displays Inc. is currently considering establishing a soling price for flat panel displays. The president of Crystal Displays has decided to use the cost-plus approach to product pricing and has indicated that the displays must eam a 19% retum on invested assets. Desde Check My Work Previous Differential Analysis Shaded cells have feedback 6a. Prepare a differential analysis of the proposed sale to Maple Leaf Visual Inc. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, entero". A colon () will automatically appear if required Score: 17/53 Differential Analysis Reject (Alternative 1) or Accept (Alternative 2) Order August Accept Order 1 Reject Order (Alternative 1) Differential Effect on Income Alternative 2) 2 (Alternative) Revenues 4 Costs: 5 Variable manufacturing costs 6 Income (loss) Instructions Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,700,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows: 1 Variable costs per unit: 2 Direct materials $119.00 3 Direct labor 32.00 50.00 3 Factory overhead Selling and administrative expenses Total variable cost per unit 36,00 $257,00 Fixed costs: Factory overhead 253,000.00 147,000.00 Selling and administrative expenses Crystal Displays Inc. is currently considering establishing a soling price for flat panel displays. The president of Crystal Displays has decided to use the cost-plus approach to product pricing and has indicated that the displays must eam a 19% retum on invested assets. Desde Check My Work Previous Differential Analysis Shaded cells have feedback 6a. Prepare a differential analysis of the proposed sale to Maple Leaf Visual Inc. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, entero". A colon () will automatically appear if required Score: 17/53 Differential Analysis Reject (Alternative 1) or Accept (Alternative 2) Order August Accept Order 1 Reject Order (Alternative 1) Differential Effect on Income Alternative 2) 2 (Alternative) Revenues 4 Costs: 5 Variable manufacturing costs 6 Income (loss)

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

Financial Accounting Study Guide

Authors: Jerry J. Weygandt ,Donald E. Kieso ,Paul D. Kimmel

4th Edition

0471205117, 978-0471205111

More Books

Students also viewed these Accounting questions

Question

Prepare an ID card of the continent Antarctica?

Answered: 1 week ago

Question

What do you understand by Mendeleev's periodic table

Answered: 1 week ago