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Please answer part C Household Products Company makes an appliance with model number XT2000. The goal for 2020 is to reduce direct materials usage per
Please answer part C
Household Products Company makes an appliance with model number XT2000. The goal for 2020 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of XT2000 units that can be produced. The industry market size for appliances increased 15% from 2019 to 2020. The following additional data are available for 2019 and 2020: 2019 Units of XT2000 produced and sold 33,000 Selling price $360 Direct materials (square feet) 90,000 Direct material costs per square foot $31 Manufacturing capacity for XT2000 (units) 41,250 Total conversion costs $866,250 Conversion costs per unit of capacity $29 2020 37,950 $345 87,000 $33 39,850 $836,850 $29 Required: a. What is the revenue effect of the growth component? b. What is the cost effect of the growth component for direct materials? c. What is the cost effect of the growth component for conversion costs
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