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PLEASE ANSWER ALL THE LISTED QUESTIONS BELOW: please zoom in to see pictures in bigger font Product 319 is produced for $3.46 per gallon. Product
PLEASE ANSWER ALL THE LISTED QUESTIONS BELOW:
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Product 319 is produced for $3.46 per gallon. Product 119 can be sold without additional processing for $4.2 per gallon, or processed further into Product R33 at an additional cost of $0.44 per gallon. Product R33 can be sold for $4.34 per gallon. a. Prepare a differential analysis dated April 30 on whether to sell Product 319 (Alternative 1) or process further into Product R33 (Alternative 2). If required, round your answers to the nearest whole dollar. Differential Analysis Sell Product 19 (Alt. 1) or Process Further into Product R33 (Alt. 2) April 30 Sell Product 19 (Alternative 1) Process Further into Product R33 (Alternative 2) Differential Effect on Income (Alternative 2) Revenues, per unit $ Costs, per unit Income (loss), per unit $ b. Should Product 319 be sold (Alternative 1) or processed further into Product R33 (Alternative 2)? Sell Product 319 ocess further into Product R33 Product A is normally sold for $50 per unit. A special price of $30 is offered for the export market. The variable production cost is $25 per unit. An additional export tariff of 15% of revenue must be paid for all export products. Assume there is sufficient capacity for the special order. a. Prepare a differential analysis dated March 16 on whether to reject (Alternative 1) or accept (Alternative 2) the special order. If required, round your answers to two decimal places. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Reject Order (Alt. 1) or Accept Order (Alt. 2) March 16 Reject Order (Alternative 1) Accept Order (Alternative 2) Differential Effect on Income (Alternative 2) Revenues, per unit Costs: Variable manufacturing costs, per unit Export tariff, per unit Income (Loss), per unit b. Should the special order be rejected (Alternative 1) or accepted (Alternative 2)? Reject the special order Accept the special order Basic Motor Corporation uses target costing. Assume that Basic marketing personnel estimate that the competitive selling price for the QuikCar in the upcoming model year will need to be $23,200. Assume further that the QuikCar's total unit cost for the upcoming model year is estimated to be $19,000 and that Basic requires a 20% profit margin on selling price (which is equivalent to a 25% markup on total cost). a. What price will Basic establish for the QuikCar for the upcoming model year? $ b. Since the estimated manufacturing cost the target cost, Basic its total costs to maintain competitive pricing within its profit objectives. may increase must reduce Step by Step Solution
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