Please Answer the following questions below:

Svahn, AB, is a Swedish manufacturer of sailing yachts. The company has assembled the information shown below that pertains to two independent decision-making contexts. Case A: The company chronically has no idle capacity and the old Model B100 machine is the company's constraint. Management is considering purchasing a Model B300 machine to use in addition to the company's present Model B100 machine. The old Model 3100 machine will continue to be used to capacity as before, with the new Model B300 machine being used to expand production. This will increase the company's production and sales. The increase in volume will be large enough to require increases in xed selling expenses and in general administrative overhead. but not in the fixed manufacturing overhead. Case B: The old Model B100 machine is not the company's constraint, but management is considering replacing it with a new Model B300 machine because of the potential savings in direct materials with the new machine. The Model B100 machine would be sold. This change will have no effect on production or sales, other than some savings in direct materials costs due to less waste. Required: Based on the information provided above indicate in the appropriate column whether each item is relevant or irrelevant to the decision context described in Case A and Case B. a. Sales revenue b. Direct materials Direct labor . Variable manufacturing overhead DepreciationModel B100 machine rhgbap Book valucLModel B100 machine Disposal valueModel B100 machine F'P Market valueModel 3300 machine (cost) i. Fixed manufacturing overhead (general) j. Variable selling expense k. Fixed selling expense |. General administrative overhead Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $380,000 per quarter. For financial reporting purposes, the company allocates these costs to thejoint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Quarterly Product Selling Price Output A $ 26.00 per pound 14,200 pounds B $ 20.00 per pound 22,100 pounds C 5 32.00 per gallon 5,400 gallons Each product can be processed further after the splitoff point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Additional Processing Selling Product Costs Price A $ 86,490 $31.70 per pound B $125,095 $26.70 per pound C $ 57,700 $40.70 per gallon I Required: 1. What is the nancial advantage (disadvantage) of further processing each of the three products beyond the split-off point? 2. Based on your analysis in requirement 1, which product or products should be sold at the split-off point and which product or products should be processed further? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the nancial advantage (disadvantage) of further processing each of the three products beyond the split-off point? (Enter "disadvantages" as a negative value.) Financial advantage (disadvantage) of further processing l l l l Dorsey Company manufactures three products from a common input in ajoint processing operation. Joint processing costs up to the split-off point total $380,000 per quarter. For financial reporting purposes, the company allocates these costs to thejoint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Quarterly Product Selling Price Output A $ 26.00 per pound 14,200 pounds B $ 20.00 per pound 22,100 pounds C 3 32.00 per gallon 5,400 gallons ' Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Additional Processing Selling Product Costs Price A $ 86,490 $31.70 per pound B $125,095 $26.70 per pound C $ 57,700 $40.70 per gallon ' Required: 1. What is the nancial advantage (disadvantage) of further processing each of the three products beyond the split-off point? 2. Based on your analysis in requirement 1, which product or products should be sold at the split-off point and which product or products should be processed further? Complete this question by entering your answers in the tabs below. Required 1 RequiredZ Based on your analysis in requirement 1, which product or products should be sold at the split-off point and which product or products should be processed further? Imperial Jewelers manufactures and sells a gold bracelet for $400.00. The company's accounting system says that the unit product cost for this bracelet is $270.00 as shown below: Direct materials $144 Direct labor 88 Manufacturing overhead 33 Unit product cost $270 [ The members of a wedding party have approached Imperial Jewelers about buying 22 ofthese gold bracelets for the discounted price of $360.00 each. The members of the wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $9. Imperial Jewelers would also have to buy a special tool for $453 to apply the ligree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $10.00 ofthe overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ability to produce and selljewelry to other customers. Furthermore, the company could fulll the wedding party's order using its existing manufacturing capacity. Required: 1. What is the nancial advantage (disadvantage) of accepting the special order from the wedding party? 2. Should the company accept the special order? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the nancial advantage (disadvantage) of accepting the special order from the wedding party? ::| Imperial Jewelers manufactures and sells a gold bracelet for $400.00. The company's accounting system says that the unit product cost for this bracelet is $270.00 as shown below: Direct materials $144 Direct labor 88 Manufacturing overhead 38 Unit product cost $270 The members of a wedding party have approached Imperial Jewelers about buying 22 of these gold bracelets for the discounted price of $360.00 each. The members ofthe wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $9. Imperial Jewelers would also have to buy a special tool for $453 to apply the ligree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how muchjewelry is produced in any given period. However, $10.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ability to produce and selljewelry to other customers. Furthermore, the company could fulll the wedding party's order using its existing manufacturing capacity. Required: 1. What is the nancial advantage (disadvantage) of accepting the special order from the wedding party? 2. Should the company accept the special order? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Should the company accept the special order? Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 88,800 units per year is: Direct materials 5 1.80 Direct labor 5 4.00 Variable manufacturing overhead 5 0.80 Fixed manufacturing overhead 5 3.75 Variable selling and administrative expenses 5 1.20 Fixed selling and administrative expenses 5 3.00 The normal selling price is $23.00 per unit. The company's capacity is 111,600 units per year. An order has been received from a mail-order house for 1,900 units at a special price of $20.00 per unit. This order would not affect regular sales or the company's total fixed costs. Required: 1. What is the nancial advantage (disadvantage) of accepting the special order? 2. As a separate matter from the special order, assume the company's inventory includes 1,000 units ofthis product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. The company does not expect the selling ofthese inferior units to have any effect on the sales of its current model. What unit cost is relevant for establishing a minimum selling price for the inferior units? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the nancial advantage (disadvantage) of accepting the special order? ::| Delta Company produces a single product. The cost of producing and selling a single unit ofthis product at the company's normal activity level of 88,800 units per year is: Direct materials $ 1.80 Direct labor S 4.00 Variable manufacturing overhead $ 0.80 Fixed manufacturing overhead 5 3.75 Variable selling and administrative expenses $ 1.20 Fixed selling and administrative expenses $ 3.00 [ The normal selling price is $23.00 per unit. The company's capacity is 111,600 units per year. An order has been received from a mail-order house for 1,900 units at a special price of $20.00 per unit. This order would not affect regular sales or the company's total fixed costs. Required: 1. What is the nancial advantage (disadvantage) of accepting the special order? 2. As a separate matter from the special order, assume the company's inventory includes 1,000 units ofthis product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. The company does not expect the selling ofthese inferior units to have any effect on the sales of its current model. What unit cost is relevant for establishing a minimum selling price for the inferior units? Complete this question by entering your answers in the tabs below. Required 1 Required 2 As a separate matter from the special order, assume the company's inventory includes 1,000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. The company does not expect the selling of these inferior units to have any effect on the sales of its current model. What unit cost is relevant for establishing a minimum selling price for the inferior units? (Round your answer to 2 decimal places.) Show IessA