Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need help! thank you in advance! 5 One of Simplex Company's products has a contribution margin of $57.000 and fixed costs totaling $67,000. If the

need help! thank you in advance!
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
5 One of Simplex Company's products has a contribution margin of $57.000 and fixed costs totaling $67,000. If the product is dropped $43.500 of the fixed costs will continue unchanged. As a result of dropping the product, the company's net operating Income should 000 Multiple Choice increase by $13.500 increase by $33.500 decrease by $33,500 decrease by $57,000 6 Ferguson Company manufactures 3,400 parts per yearthe parts are used in the assembly of one of the company's products. The unit product cost of these parts is: eBook 3140 Variable manufacturing cost $ Fixed manufacturing cost Pri 16.20 47.60 Unit product cost The part can be purchased from an outside supplier at $39.40 per unit. If the part is purchased from the outside supplier, two-thirds of the fixed manufacturing costs can be eliminated. The annual impact on the company's net operating income as a result of buying the part from the outside supplier would be: Multiple Choice $9.520 increase $8,840 decrease $8,840 Increase $9.520 decrease 11 Consider the following production and cost data for the two versions of the product that is manufactured and sold by Bellows Corporation: Basic Deluxe Contribution margin per unit $449.50 $48750 Machine set-ups required per 31 set-ups 39 set-ups unit Only 251100 machine set-ups can be performed each year due to limited supply of skilled labor. There is unlimited demand for each product. The largest possible total contribution margin that can be realized each year is: Multiple Choice $6.779,700 $3,138,750 $3.948,750 16 A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry Supply the missing data in the table below: (loss amounts should be indicated by a minus sign. Enter your ROI and Rate of Return Percentage answers to the nearest percentage (i.e., 0.12 should be entered as 12).) eBook Print Company B A Sales $ 470,000 $ $ 680,000 810,000 53,000 $ $ $ 161,000 17% 144,000 % 15% Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return; Percentage Dollar amount Residual income 18 % 15 % % 55,000 $ $ 5,000

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_2

Step: 3

blur-text-image_3

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

Auditing And Assurance Services

Authors: By David N. Ricchiute

6th Edition

0324024029, 9780324024029

More Books

Students also viewed these Accounting questions

Question

Make efficient use of your practice time?

Answered: 1 week ago