Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer all required parts Data table x All fixed costs per unit are calculated based on a normal capacity usage consisting of 240 working

please answer all required parts
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Data table x All fixed costs per unit are calculated based on a normal capacity usage consisting of 240 working days. When the number of working days exceeds 240 , overtime charges raise the variable manufacturing costs of additional units by $4.00 per unit in Peoria and $10.00 per unit in Moline. Preston Corporation is expected to produce and sell 192,000 power generators during the coming year. Wanting to take advantage of the higher operating income per unit at Moline, the company's production manager has decided to manufacture 96,000 units at each plant, resulting in a plan in which Moline operates at maximum capacity ( 320 units per day 300 days) and Peoria operates at its normal volume ( 400 units per day 240 days). Preston Corporaton produces the same power generator in two thinois plants, a new plant in Peoria and an older plant in Moline. The following data are available for the two plants. (Click the icon to yiew the data table.) (Click the icon to view the addicional data) Requirement 1. Calculate the breakeven point in units for the Peoria plant and for the Moline plant. Requirement 2. Calculate the cperating income that would result from the production manager's plan to produce 96,000 units at each plant Requirement 3. Determine how the production of 192,000 units thould be allocated between the Peoria and Moline plants to maximise operating inocme for Prestion Corporation. Show your calculations. (Use the coniribution margin approach.) The optimal peoductien plan is to produce units at the Peoria plant and units at the Moline dant The capacity of the Peonis plant should be used because the than trom units produced at the Moline plant. Preston Corporation produces the same power generator in two Illinois plants, a new plant in Peoria and an oider plant in Moline. The following data are avalable for the two plants. (Click the icon to view the dala fable.) Click the icon ta view the additional dati.) than trom units produced at the Molne plant. Now show your calculations. Begin by calculating the total contribution margin for the Peoria plant, (For amounts with a so balance, make sure to enter "0* in the approcriato cell)

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

Quality Auditing Note Book Journal Notes Checklist Questions Observations Evidence Log

Authors: Just Visualize It, The Quality Guy

1st Edition

1726688402, 978-1726688406

More Books

Students also viewed these Accounting questions

Question

Explain all drawbacks of the application procedure.

Answered: 1 week ago

Question

Determine Leading or Lagging Power Factor in Python.

Answered: 1 week ago