lli References Chip Company produces three productsv Kin, Ike, and Bix, Each product uses the same direct material. Kin uses 46 pounds ofthe material, Ike uses 3.4 pounds ofthe material, and Bix uses 5.9 pounds ofthe material. Selling price per unit and variable costs per unit of each product follow. Kin Ike Bix Selling pr'1(e per' unit 5 178.26 $ 124.53 3; 232.93 Variable costs per unit 92.86 55.88 133.06 {a} Compute contribution margin per pound of material for each product {b} If demand is limited, list the three products in the order in which management should produce and meet demand. m2 ms mos Contribution margin per pound Order in which management should produce and meet demand: 8 Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $45,000 and a remaining useful life of five years. It can be sold now for $55,000. Variable manufacturing costs are $48,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five 2 years. points Machine A Machine B Skipped Purchase price $ 119,000 $ 134,606 Variable manufacturing costs per year 21, 000 13, 000 (a) Compute the income increase or decrease from replacing the old machine with Machine A. (b) Compute the income increase or decrease from replacing the old machine with Machine B. Book (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? Hint Complete this question by entering your answers in the tabs below. Print Req A Req B Req C and D Compute the income increase or decrease from replacing the old machine with Machine A. (Amounts to be deducted should be References indicated with a minus sign.) Income Increase Machine A: Keep or Replace Analysis Keep Replace (Decrease) from Replacing Revenues Sale of existing machine Costs Purchase of new machine Variable manufacturing costs Income (loss) 0 $ 0 $ 0 8 Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $45,000 and a remaining useful life of five years. It can be sold now for $55,000. Variable manufacturing costs are $48,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five 2 years. points Machine A Machine B Skipped Purchase price $ 119,000 $ 134,060 Variable manufacturing costs per year 21, 000 13, 000 (a) Compute the income increase or decrease from replacing the old machine with Machine A. (b) Compute the income increase or decrease from replacing the old machine with Machine B. eBook (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? Hint Complete this question by entering your answers in the tabs below. Print Reg A Reg B Req C and D References Compute the income increase or decrease from replacing the old machine with Machine B. (Amounts to be deducted should be indicated with a minus sign.) Income Increase Machine B: Keep or Replace Analysis Keep Replace (Decrease) from Replacing Revenues Sale of existing machine Costs Purchase of new machine Variable manufacturing costs Income (loss) $ 0 $ 0 $ Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $45,000 and a remaining useful life of five years. It can be sold now for $53000, Variable manufacturing costs are $48,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is fIVE 2 years. points Machine A Machine Shipped Purchase price $ 119,300 $ 134,000 Variable manufacturing costs per year 21,300 13,800 (a) Compute the income increase or decrease from replacing the old machine with Machine A, a lb} Compute the income increase or decrease from replacing the old machine with Machine B. eEook (c) Should Lopez keep or replace its old machine? Id} lfthe machine should be replaced, which new machine should Lopez purchase? Hm I Complete this question by entering your answers in the labs below. In Print Rea A Req B Req C and D References (c) Should Lopez keep or replace Its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? ([2] Should Lopez keep or replace its old machine? (d) Which new machine should Lopez purchase? ( Req B 9 Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see below). All its variable costs are avoidable, and $350,000 of its fixed costs are avoidable. 2 Segment Income ( Loss ) points Sales $ 1, 176,000 Variable costs 840,000 Contribution margin 336,900 Fixed costs 400, 000 Income (loss) $ (64, 060 eBook (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated? Hint Complete this question by entering your answers in the tabs below. Print Required A Required B References Compute the income increase or decrease from eliminating this segment. Segment Elimination Analysis Continue Eliminate Income Increase (Decrease) Sales Variable costs Contribution margin 0 0 Fixed cost Income (loss $ 0 $ 0 $ 0 9 Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see below). All its variable costs are avoidable, and $350,000 of its fixed costs are avoidable. 2 Segment Income ( Loss ) points Sales $ 1, 176,000 Variable costs 840, 000 Contribution margin 336,900 Fixed costs 400, 900 Income (loss) $ (64, 000) eBook (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated? Hint Complete this question by entering your answers in the tabs below. Print Required A Required B References Should the segment be continued or eliminated? Should the segment be continued or eliminated? Edge Company produces two models of its product with the same machine. The machine has a capacity of156 hours per month. The following information is available. 2 Standard Deluxe points Selling price per unit $ 158 $ 130 Variable costs per unit 68 188 Contribution margin per unit $ 93 $ 72 Machine hours per unit 1 hour 2 hours Ei Maximum unit sales per month 558 units 280 units eBook Required: Pm\" '1. Determine the contribution margin per machine hour for each model. TI References Contribution margin per unit Contribution margin per machine hour 2. How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Hours dedicated to the production of each product Units produced for most protable sales mix Contribution margin per unit Total contribution margin 3. Assume the maximum demand for the Standard model is Bi] units (not 550 units]. How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Hours dedicated to the production of each product Units produced for most protable sales mix Contribution margin per unit Total contribution margin