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please help Data table More info Methuen produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2020. Conversion
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Data table More info Methuen produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2020. Conversion costs in each year depend on production capacity defined in terms of D4H units that can be produced, not the actual units produced. Selling and customer-service costs depend on the number of customers that Methuen can support, not the actual number of customers it serves. Methuen has 75 customers in 2019 and 80 customers in 2020. Requirements 1. Calculate the operating income of Methuen Corporation in 2019 and 2020. 2. Calculate the growth, price-recovery, and productivity components that explain the change in operating income from 2019 to 2020. 3. Comment on your answer in requirement 2 . What do these components indicate? Methuen Corporation makes a special-purpose machine, D4H, used in the textile industry. Methuen has designed th 24H machine for 2020 to be distinct from its competitors. It has been generally regarded as a superior machine. Methuen presents the following data for 2019 and 2020. (Click the icon to view the data.) (Click the icon to view additional information.) Read the requirements. Kequirement \&. Lalcuate the growin, price-recovery, ana procucuvity components tnat explain the cnange in operating income from 2019 to 2020. To assist you, use the popup to identify the various components of the formulas. (Click to view the components you will use in your formulas.) Begin by determining the formula to calculate the revenue effect of growth. Then enter the amounts in the formula. Next, determine the formula to calculate the cost effect of growth for direct material costs. Then enter the amounts in the formula. Think carefully, based upon the information given to you, about which cost is direct material Determine the formula to calculate the cost effect of growth for fixed costs. Then, enter the amounts in the formula Calculate the cost effect of growth for conversion costs first, then for selling and customer service costs. (For amounts with a $0 balance, make sure to enter " 0 " in the appropriate cell. Complete all input fields.) Reference A Actual units of capacity in 2019 B Actual units of capacity in 2020 H Input price in 2020 C Actual units of input used to produce 2019 output I Price per unit of capacity in 2019 D Actual units of input used to produce 2020 output J Price per unit of capacity in 2020 E Actual units of output sold in 2019 L. Selling price in 2020 F Actual units of output sold in 2020 G Input price in 2019 M Units of input required to produce 2020 output in 2019 N. Units of capacity required to produce 2020 output in 2019 Data table More info Methuen produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2020. Conversion costs in each year depend on production capacity defined in terms of D4H units that can be produced, not the actual units produced. Selling and customer-service costs depend on the number of customers that Methuen can support, not the actual number of customers it serves. Methuen has 75 customers in 2019 and 80 customers in 2020. Requirements 1. Calculate the operating income of Methuen Corporation in 2019 and 2020. 2. Calculate the growth, price-recovery, and productivity components that explain the change in operating income from 2019 to 2020. 3. Comment on your answer in requirement 2 . What do these components indicate? Methuen Corporation makes a special-purpose machine, D4H, used in the textile industry. Methuen has designed th 24H machine for 2020 to be distinct from its competitors. It has been generally regarded as a superior machine. Methuen presents the following data for 2019 and 2020. (Click the icon to view the data.) (Click the icon to view additional information.) Read the requirements. Kequirement \&. Lalcuate the growin, price-recovery, ana procucuvity components tnat explain the cnange in operating income from 2019 to 2020. To assist you, use the popup to identify the various components of the formulas. (Click to view the components you will use in your formulas.) Begin by determining the formula to calculate the revenue effect of growth. Then enter the amounts in the formula. Next, determine the formula to calculate the cost effect of growth for direct material costs. Then enter the amounts in the formula. Think carefully, based upon the information given to you, about which cost is direct material Determine the formula to calculate the cost effect of growth for fixed costs. Then, enter the amounts in the formula Calculate the cost effect of growth for conversion costs first, then for selling and customer service costs. (For amounts with a $0 balance, make sure to enter " 0 " in the appropriate cell. Complete all input fields.) Reference A Actual units of capacity in 2019 B Actual units of capacity in 2020 H Input price in 2020 C Actual units of input used to produce 2019 output I Price per unit of capacity in 2019 D Actual units of input used to produce 2020 output J Price per unit of capacity in 2020 E Actual units of output sold in 2019 L. Selling price in 2020 F Actual units of output sold in 2020 G Input price in 2019 M Units of input required to produce 2020 output in 2019 N. Units of capacity required to produce 2020 output in 2019 Step by Step Solution
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