PLEASE HELP! READ EACH QUESTION CAREFULLY & MAKE SURE THE ANSWERS OR CLEAR!
Harold Manufacturing produces denim clothing. This year, it produced 5,110 denim jackets at a manufacturing cost of $41.00 each. These jackets were damaged in the warehouse during storage. Management investigated the matter and identified three alternatives for these jackets. 2. Jackets can be sold to a second-hand clothing shop for $8.00 each. Jackets can be disassembled at a cost of $31,500 and sold to a recycler for $11.00 each. 3. Jackets can be reworked and turned into good jackets. However, with the damage, management estimates it will be able to assemble the good parts of the 5,110 jackets into only 3,070 jackets. The remaining pieces of fabric will be discarded. The cost of reworking the jackets will be $102,100, but the jackets can then be sold for their regular price of $44.00 each. Required: 1. Calculate the incremental income. Alternative 1 Alternative 2 Alternative 3 Sell to a second Disassemble and Rework and sell at hand shop sell to a recycler regular prices Incremental revenue Incremental costs Incremental income Edgerron Company is able to produce two products, and B. with the same machine in its factory. The following information is available. Product Swing price per unit $12 Variable costs per unit Contribution margin perunt Machine hours to produce Maximum unt sales per month 600 units The company presently operates the machine for a single eight-hour shift for 22 working days each month, Management is thinking about operating the machine for two shifts, which will increase its productivity by another eight hours per day for 22 days per month This change would require $8,000 additional fixed costs per month (Round hours per unit answers to 1 decimal place. Enter operating losses, if any, as negative values.) 1. Determine the contribution margin per machine how that each product generates Produto Contribution perunt Pro Contribution marin per machine how Produto Product Maximum number of units to be sold Hours required to produce maximum unts 2. How many units of Product and Product should the company produce continues to personnes How much total contribution margin does this produce each more! Hours dedicated to the production of each produit Units produced for most problemi Contribution margin perunt Total contribution margin-one is another whow w many units of Product and the produce out marginwould produce each more? Producto Product Hour dedicated to the production of each product Unta produced for most profitable sales mix Contribution per Total contribution margin two 4. Suppose that the company determines that can increase Products to 700 per mon by spending $7000 per month in antingen. Should the company is egy and the double Produto Product Hours dedicated to the production of each product Units produced for most problemi Contribution margin perunt Total contribution margin-botandarting campaign The company presently operates the machine for a single eight-hour shift for 22 working days each month. Management is thinking about operating the machine for two shifts, which will increase its productivity by another eight hours per day for 22 days per month. This change would require $8,000 additional fixed costs per month. (Round hours per unit answers to 1 decimal place. Enter operating losses, if any, as negative values.) 1. Determine the contribution margin per machine hour that each product generates Product G Contribution margin per unit Products Contribution margin per machine hour Product Total Product G 600 150 Maximum number of units to be sold Hours required to produce maximum units 2. How many units of Product G and Product should the company produce if it continues to operate with only one shift? How much total contribution margin does this mix produce each month? Product Products Total Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin perunt Total contribution margin-one shift 3. If the company adds another shift, how many units of Product and Product B should it produce? How much total contribution margin would this mix produce each month? Product Product B Total Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin perunt Total contribution margin-two 4. Suppose that the company determines that it can increase Product G's maximum sales to 700 units per month by spending $7000 per month in marketing efforts. Should the company pursue this strategy and the double shift? Product G Products Total Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin-two shifts and marketing campaign
