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Orange Bliss manufactures two products, Frozen and Rocks, that sell for $80 and $60 respectively. The company produced 100,000 units last year and at that
Orange Bliss manufactures two products, Frozen and Rocks, that sell for $80 and $60 respectively. The company produced 100,000 units last year and at that level of activity, the average cost per unit were: Frozen Rocks direct materials $20 $15 direct labor $18 $12 variable manu. $9 $13 overhead traceable/avoidable $15 $13 fixed variable selling & $5 $3 admin allocated/unavoidable $13 $9 $_ $_ fixed total cost per unit Orange Bliss received an inquiry from the Bartender's Association of America to buy 10,367 "Rocks" for $57 each. They have capacity to fill this order without interfering with normal customer demand. The variable selling costs for this order are the same as regular units and no new fixed costs are needed to complete the order. What is the advantage (disadvantage) of accepting this order? Round to nearest whole number with disadvantage expressed as a negative. Rubble Inc. has an old crushing machine. It requires a consistent level of maintenance to keep it running well and business is strong so they have to occasionally decline an order due to not being able to crush enough material. They are considering upgrading to a crushing-and-sorting dual machine that would complete two processes instead of just one and reduce maintenance costs. Which of these items is relevant to the decision of whether to replace the old crushing machine? Select all that are relevant. useful life of old crushing machine maintenance cost of old crushing machine lost contribution margin during down time depreciation costs of new crushing-and-sorting machine cost of new crushing-and-sorting machine cost of factory overhead in crushing department direct labor assigned to crushing and sorting CO Orange Bliss manufactures two products, Frozen and Rocks, that sell for $80 and $40 respectively. The company produced 10,000 units last year and at that level of activity, the average cost per unit were: Frozen Rocks direct materials $20 $15 direct labor $18 $12 variable manu. $10 $11 overhead traceable/avoidable $15 $13 fixed variable selling & $5 $6 admin allocated/unavoidable $11 $10 fixed total cost per unit $_ $_ Orange Bliss has had low volume in Rocks (2,000 units sold) for some time and is considering dropping that product line. What is the advantage (disadvantage) of dropping this product line? Round to nearest whole number with disadvantage expressed as a negative. Campus Jewels selling bracelets for $120. The product cost per unit for the recent year is shown below. $60 for direct materials $30 for direct labor $14 for manufacturing overhead (40% variable) A sorority requests 40 custom bracelet at $105 sales price with a custom logo. The logo requires a special tool costing $217. This order will not impact other customer orders and there is plenty of capacity to produce these without impacting other production needs. What is the financial advantage (disadvantage) of accepting this order? Report as a whole number with disadvantage as a negative. S Wigs Inc.'s vendor supplying patented super soft silk netting lost their factory due to inclement weather. They are evaluating new suppliers, but that is not looking good. The prior vendor will take four months to find a new factory and get back to production. In the meantime, they have 50 yards of netting on hand, not enough to meet market demand for either wig type. What wig type should produced with the remaining netting and how many of that product can be produced? Round to a whole number of wigs that can be produced that maximizes the contribution margin for the remaining netting. Sales price Curly $150 Straight $120 Wariable costs $80 $72 Netting required per wig 5 yards 2 yards
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