Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me solve the mistakes Help Check my work mode : This shows what is correct or Incorrect for the work you have completed

Please help me solve the mistakes image text in transcribed
image text in transcribed
Help Check my work mode : This shows what is correct or Incorrect for the work you have completed so far. It does not indicate completion 2 Problem 23-1A Analyzing income effects of additional business LO PY 10 points Jones Products manufactures and sells to wholesalers approximately 100,000 packages per year of underwater markers at $3,81 der package. Annual costs for the production and sale of this quantity are shown in the table. Direct sale Direct labore Overhead Selling expenses Administrative expeR Total costs and expenses $120,000 12.000 95,000 40,000 21.000 $323,000 A new wholesaler has offered to buy 17,000 packages for $3.49 each These markers would be marketed under the wholesaler's name and would not affect Jones Products's sales through its normal channels. A study of the costs of this additional business revents the following: - Direct materials costs are 100% variable: - Per unit direct labor costs for the additional units would be 50% higher than normal because their production would require Overtime pay at times the usual laborate 25% of the normal annual overhead costs are fixed at any production level from 50,000 to 200,000 units. The remaining 75% of the annual overhead costs are variable with volume Accepting the new business would involve no additional sing expenses - Accepting the new business would increase administrative expenses by 55.000 ed amount Required: Complete the three-column comparative income statement that shows the following (Round your intermediate calculations and per it cost answers to decimais.) 1. Annual operating income without the special ordet Saved 11 EP (Extra Credit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate con 2 Complete the three-column comparative Income statement that shows the following. (Round your intermediate calculations and per unit cost answers to 3 decimals.) 1. Annual operating Income without the special order, 2. Annual operating income received from the new business only 3. Combined annual operating income from normal business and the new business. ts Answer is complete but not entirely correct. Per Unit Amounts Total Normal New Normal New Combined Volume Business Volume Business 3.81 $ 3.49 $ 381.000 $ 59,330 440,330 Sales Variable costs Direct materials Direct labor Variable overhead 1.280 0.320 0.720 1280 0.3253 0.720 128.000 32,000 72.000 21,760 5,522 12,240 149,760 37,5523 84.240 Tal variable cout Carbon margin ol 2320 1490$ 2.325 1.1653 232.000 149,000 39,522 19,808 271,552 168,778 $ and costs Pored owerhead Selling expenses Administrative pense DOO 24,000 40,000 27.000 O 02 5.000 24,000 40.000 32.000 0 96.000 73,308 Tood cost Operating income 95.000 58.500 5.000 54,800

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Reporting And Analysis, 2017 Update

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

2nd Edition

1337505625, 9781337505628

More Books

Students also viewed these Accounting questions