Please answer the eight accounting questions attached. Please highlight your answer(s) for the multiple choice questions. You can select more than one answer.

Kitchen Magician, Inc. has assembled the following data pertaining to its two most popular products. Blender Direct material $ Electric Mixer 19 $ 26 Direct labor 12 40 Manufactu ring overhead @ $48 per machine hour 48 96 Cost if purchased from an outside supplier 66 130 35,000 42,000 Annual demand (units) Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hou Required: 1. If 74,000 machine hours are available, and management desires to follow an optimal strategy, how ma 2. With all other things constant, if management is able to reduce the direct material for an electric mixer If 74,000 machine hours are available, and management desires to follow an optimal strategy, how many units o Blender Electric Mixer Manufacture Purchase With all other things constant, if management is able to reduce the direct material for an electric mixer to $19 p Blender Manufacture Purchase Electric Mixer he cost per machine hour averages $24. Kitchen Magician's management has a policy of filling all sales orders, even if it mean optimal strategy, how many units of each product should the firm manufacture? How many units of each product should be purc erial for an electric mixer to $19 per unit, how many units of each product should be manufactured? Purchased? ategy, how many units of each product should the firm manufacture? How many units of each product should be purchased n electric mixer to $19 per unit, how many units of each product should be manufactured? Purchased? ales orders, even if it means purchasing units from outside suppliers. ach product should be purchased? Purchased? oduct should be purchased? Johnson and Gomez, Inc. is a small firm involved in the production and sale of electronic business pro During the past 15 months, a new product has been under development that allows users improved a Basic Projected selling price $ Enhanced 400 $ 500 Per-unit production costs: Direct material 53 84 Direct labor 28 41 Variable overhead 47 59 206,000 355,000 Marketing and advertising (fixed but avoidable) Sales commissions* 15 % 20 *Computed on the basis of sales dollars. Since the start of development work on the Wireless Wizard, advances in technology have altered the Required: 1. Compute the unit contribution margin for both models. (Round your answers to 2 decimal places Basic Unit contribution margin Enhanced of electronic business products. The company is well known for its attention to quality and innovation. allows users improved access to e-mail and video images. Johnson and Gomez code named the product the Wireless Wiz Enhanced % chnology have altered the market somewhat, and management now believes that the company can introduce only one of th wers to 2 decimal places.) roduct the Wireless Wizard and has been quietly designing two models: Basic and Enhanced. Development costs have amo ntroduce only one of the two models. Consultants confirmed this fact not too long ago, with Johnson and Gomez paying $35 opment costs have amounted to $198,000 and $279,000, respectively. The total market demand for each model is expected and Gomez paying $35,600 for an in-depth market study. Sales salaries (excluding commission) will be $91,000 no matter each model is expected to be 51,000 units, and management anticipates being able to obtain the following market shares: ll be $91,000 no matter which product is sold. The marketing and advertising costs indicated for each product are incurred llowing market shares: Basic, 25 percent; Enhanced, 20 percent. Forecasted data follow. ch product are incurred only if that product is sold. Other fixed overhead is expected to be the same, regardless of which pro regardless of which product is introduced. Johnson and Gomez, Inc. is a small firm involved in the production and sale of electronic business pro During the past 15 months, a new product has been under development that allows users improved a Basic Projected selling price $ 400 Enhanced $ 500 Per-unit production costs: Direct material 53 84 Direct labor 28 41 Variable overhead 47 59 206,000 355,000 Marketing and advertising (fixed but avoidable) Sales commissions* 15 % 20 *Computed on the basis of sales dollars. Since the start of development work on the Wireless Wizard, advances in technology have altered the 2. Which of the following should be ignored in making the product-introduction decision? (You may se Development costs unchecked Market study unanswered Marketing and Advertising unanswered Fixed manufac Development costs Market study Marketing and Advertising Fixed manufacturing overhead Variable manufacturing overhead Sales salaries sale of electronic business products. The company is well known for its attention to quality and innovation. that allows users improved access to e-mail and video images. Johnson and Gomez code named the product the Wireless Enhanced % n technology have altered the market somewhat, and management now believes that the company can introduce only one o uction decision? (You may select more than one answer) Highlight the correct answer and double click the box with g unanswered Fixed manufacturing overhead unanswered Variable manufacturing overhead unanswered Sales salaries he product the Wireless Wizard and has been quietly designing two models: Basic and Enhanced. Development costs have can introduce only one of the two models. Consultants confirmed this fact not too long ago, with Johnson and Gomez paying ble click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark wered Sales salaries evelopment costs have amounted to $198,000 and $279,000, respectively. The total market demand for each model is expe nson and Gomez paying $35,600 for an in-depth market study. Sales salaries (excluding commission) will be $91,000 no ma with a question mark will be automatically graded as incorrect.) d for each model is expected to be 51,000 units, and management anticipates being able to obtain the following market shar n) will be $91,000 no matter which product is sold. The marketing and advertising costs indicated for each product are incur e following market shares: Basic, 25 percent; Enhanced, 20 percent. Forecasted data follow. each product are incurred only if that product is sold. Other fixed overhead is expected to be the same, regardless of whic ame, regardless of which product is introduced. Johnson and Gomez, Inc. is a small firm involved in the production and sale of electronic business pro During the past 15 months, a new product has been under development that allows users improved a Basic Projected selling price $ Enhanced 400 $ 500 Per-unit production costs: Direct material 53 84 Direct labor 28 41 Variable overhead 47 59 206,000 355,000 Marketing and advertising (fixed but avoidable) Sales commissions* 15 % 20 *Computed on the basis of sales dollars. Since the start of development work on the Wireless Wizard, advances in technology have altered the 3-a. Prepare a financial analysis and determine which of the two models should be introduced. 3-b. The company would be advised to select the Enhanced model or Basic model? Prepare a financial analysis and determine which of the two models should be introduced. (Round intermedia Basic Total contribution margin Income Enhanced of electronic business products. The company is well known for its attention to quality and innovation. allows users improved access to e-mail and video images. Johnson and Gomez code named the product the Wireless Wiz Enhanced % chnology have altered the market somewhat, and management now believes that the company can introduce only one of the uld be introduced. uced. (Round intermediate calculations to 2 decimal places.) oduct the Wireless Wizard and has been quietly designing two models: Basic and Enhanced. Development costs have amo ntroduce only one of the two models. Consultants confirmed this fact not too long ago, with Johnson and Gomez paying $35 opment costs have amounted to $198,000 and $279,000, respectively. The total market demand for each model is expected and Gomez paying $35,600 for an in-depth market study. Sales salaries (excluding commission) will be $91,000 no matter each model is expected to be 51,000 units, and management anticipates being able to obtain the following market shares: B be $91,000 no matter which product is sold. The marketing and advertising costs indicated for each product are incurred o lowing market shares: Basic, 25 percent; Enhanced, 20 percent. Forecasted data follow. h product are incurred only if that product is sold. Other fixed overhead is expected to be the same, regardless of which pro regardless of which product is introduced. Johnson and Gomez, Inc. is a small firm involved in the production and sale of electronic business pro During the past 15 months, a new product has been under development that allows users improved a Basic Projected selling price $ 400 Per-unit production costs: Direct material 53 Direct labor 28 Variable overhead 47 Marketing and advertising (fixed but avoidable) 206,000 Sales commissions* 15 % *Computed on the basis of sales dollars. Since the start of development work on the Wireless Wizard, advances in technology have altered the 4. What other factors should Johnson and Gomez, Inc. consider before a final decision is made? (You Possibility of merger of the firm with a bigger player Growth potential of the Basic and Enhanced models Competitive products in the marketplace Aesthetic differences between the two products Break-even points Data validity Previous years' sales trends Production feasibility Effects, if any, on existing product sales ale of electronic business products. The company is well known for its attention to quality and innovation. hat allows users improved access to e-mail and video images. Johnson and Gomez code named the product the Wireless W Enhanced $ 500 84 41 59 355,000 20 % technology have altered the market somewhat, and management now believes that the company can introduce only one of final decision is made? (You may select more than one answer) Highlight the correct answer and double click the bo e product the Wireless Wizard and has been quietly designing two models: Basic and Enhanced. Development costs have a an introduce only one of the two models. Consultants confirmed this fact not too long ago, with Johnson and Gomez paying nd double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question velopment costs have amounted to $198,000 and $279,000, respectively. The total market demand for each model is expec son and Gomez paying $35,600 for an in-depth market study. Sales salaries (excluding commission) will be $91,000 no matt es left with a question mark will be automatically graded as incorrect.) or each model is expected to be 51,000 units, and management anticipates being able to obtain the following market share will be $91,000 no matter which product is sold. The marketing and advertising costs indicated for each product are incurre following market shares: Basic, 25 percent; Enhanced, 20 percent. Forecasted data follow. each product are incurred only if that product is sold. Other fixed overhead is expected to be the same, regardless of which me, regardless of which product is introduced. Jupiter Corporation manufactures skateboards. Several weeks ago, the firm received a special-order Direct material $ Direct labor: 0.25 hours at $9.00 8.2 2.25 Total manufacturing overhead: 0.5 hours at $20 10 Total $ 20.45 Additional data: The normal selling price of model no. 43 is $26.50; however, Venus has offered Jupiter only $15.75 Venus requires a modification of the design that will allow a $2.10 reduction in direct-material cost. Jupiter's production supervisor notes that the company will incur $3,700 in additional setup costs a Total manufacturing overhead costs are applied to production at the rate of $20 per machine hour. Jupiter will allocate $1,800 of existing fixed administrative costs to the order as \"... part of the cost o Required: 1-a. Calculate the net profit increase or (decrease) from accepting the special order. 1-b. Assume that present sales will not be affected. Should the order be accepted from a financial poi Calculate the net profit increase or (decrease) from accepting the special order. (Do not round intermediate c Increase (decrease) to profit e firm received a special-order inquiry from Venus, Inc. Venus desires to market a skateboard similar to one of Jupiter's and has offered Jupiter only $15.75 because of the large quantity it is willing to purchase. duction in direct-material cost. 700 in additional setup costs and will have to purchase a $2,400 special device to manufacture these units. The device will rate of $20 per machine hour. This figure is based, in part, on budgeted yearly fixed overhead of $750,000 and planned pro e order as \"... part of the cost of doing business.\" special order. e accepted from a financial point of view (i.e., is it profitable)? . (Do not round intermediate calculations.) to one of Jupiter's and has offered to purchase 11,000 units if the order can be completed in three months. The cost data f e units. The device will be discarded once the special order is completed. 50,000 and planned production activity of 60,000 machine hours (5,000 per month). months. The cost data for Jupiter's model no. 43 skateboard follow. Jupiter Corporation manufactures skateboards. Several weeks ago, the firm received a special-order Direct material $ Direct labor: 0.25 hours at $9.00 8.2 2.25 Total manufacturing overhead: 0.5 hours at $20 10 Total $ 20.45 Additional data: The normal selling price of model no. 43 is $26.50; however, Venus has offered Jupiter only $15.75 Venus requires a modification of the design that will allow a $2.10 reduction in direct-material cost. Jupiter's production supervisor notes that the company will incur $3,700 in additional setup costs a Total manufacturing overhead costs are applied to production at the rate of $20 per machine hour. Jupiter will allocate $1,800 of existing fixed administrative costs to the order as \"... part of the cost o 2-a. Assume that Jupiter's current production activity consumes 70 percent of planned machine-hour 2-b. Can the company accept the order and meet Venus' deadline? Assume that Jupiter's current production activity consumes 70 percent of planned machine-hour activity. Calc Current available machine-hours e firm received a special-order inquiry from Venus, Inc. Venus desires to market a skateboard similar to one of Jupiter's and has offered Jupiter only $15.75 because of the large quantity it is willing to purchase. duction in direct-material cost. 700 in additional setup costs and will have to purchase a $2,400 special device to manufacture these units. The device will rate of $20 per machine hour. This figure is based, in part, on budgeted yearly fixed overhead of $750,000 and planned pro he order as \"... part of the cost of doing business.\" cent of planned machine-hour activity. Calculate the current available machine-hours. ned machine-hour activity. Calculate the current available machine-hours. to one of Jupiter's and has offered to purchase 11,000 units if the order can be completed in three months. The cost data f e units. The device will be discarded once the special order is completed. 50,000 and planned production activity of 60,000 machine hours (5,000 per month). months. The cost data for Jupiter's model no. 43 skateboard follow. Jupiter Corporation manufactures skateboards. Several weeks ago, the firm received a special-order Direct material $ Direct labor: 0.25 hours at $9.00 8.2 2.25 Total manufacturing overhead: 0.5 hours at $20 10 Total $ 20.45 Additional data: The normal selling price of model no. 43 is $26.50; however, Venus has offered Jupiter only $15.75 Venus requires a modification of the design that will allow a $2.10 reduction in direct-material cost. Jupiter's production supervisor notes that the company will incur $3,700 in additional setup costs a Total manufacturing overhead costs are applied to production at the rate of $20 per machine hour. Jupiter will allocate $1,800 of existing fixed administrative costs to the order as \"... part of the cost o 3. What options might Jupiter consider if management truly wanted to do business with Venus in hope Completely ignore the additional setup costs and the new device costs, as these are fixed in nature Working overtime Outsourcing some units Acquiring more machine capacity Sacrificing some current business in the hope that a long-term relationship with Venus can be established and pr eived a special-order inquiry from Venus, Inc. Venus desires to market a skateboard similar to one of Jupiter's and has offer ed Jupiter only $15.75 because of the large quantity it is willing to purchase. n direct-material cost. ditional setup costs and will have to purchase a $2,400 special device to manufacture these units. The device will be discar 20 per machine hour. This figure is based, in part, on budgeted yearly fixed overhead of $750,000 and planned production a s \"... part of the cost of doing business.\" ss with Venus in hopes of building a long-term relationship with the firm? (You may select more than one answer) Highlig be established and proves to be profitable f Jupiter's and has offered to purchase 11,000 units if the order can be completed in three months. The cost data for Jupiter he device will be discarded once the special order is completed. nd planned production activity of 60,000 machine hours (5,000 per month). an one answer) Highlight the correct answer and double click the box with the question mark to empty the box for a The cost data for Jupiter's model no. 43 skateboard follow. to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrec lly graded as incorrect.)