Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show work to help me thank you. CompDesk, Inc., makes a single model of an ergonomic desk (with chair) for computer usage. The desk

please show work to help me thank you. image text in transcribed
image text in transcribed
image text in transcribed
CompDesk, Inc., makes a single model of an ergonomic desk (with chair) for computer usage. The desk is manufactured in building 1 and the chair is manufactured in building 2 Monthly capacities and production levels are as follows: wung (D) Building 2 Choos) Monthly capacity Monthly production 400 400 400 500 The company will sell a desk only with a chair and can sell 500 desks per month. The units (desk with chair) sell for $318 each and have a variable cost of $131 each Required: a. Is there a bottleneck at CompDesk in Building 1 or Building 2? b. CompDesk's production supervisors state they could increase building T's capacity by 100 desks per month by producing desks on the weekend. Producing on the weekend would not affect the sales price. Variable cost per unit would increase by $31 for those produced on the weekend because of the premium paid to labor Fixed costs would also increase by $21,200 per month b-1. Calculate the differential operating profit (loss) b-2. Should CompDesk produce desks on the weekend? c. Independent of the situation in requirement (0) CompDesk could add additional equipment and workers to building 1, which would Increase its capacity by 100 desks per month. This would not affect the sales price or variable cost per unit but would increase fixed costs by $15,600 per month c-1. Calculate the differential operating profit (loss) c-2. Should CompDesk add the additional equipment and workers to building 1? Complete this question by entering your answers in the tabs below. ReqA Req B1 Req B2 Reg 1 Reg C2 CompDesk's production supervisors state they could increase building 1's capacity by 100 desks per month by producing desks on the weekend. Producing on the weekend would not affect the sales price: Variable cost per unit would increase by $31 for those produced on the weekend because of the premium paid to labor. Fixed costs would also increase by $21,200 per month. B1. Calculate the differential operating profit (loss). (losses and amounts to be deducted should be indicated with a minus sign.) Show less Differential revenues Differential costs Fixed Variable Reg A Req B1 Reg B2 Reg C1 Reg C2 Independent of the situation in requirement (b). CompDesk could add additional equipment and workers to building 1, which would increase its capacity by 100 desks per month. This would not affect the sales price or variable cost per unit but would increase fixed costs by $15,600 per month. C1. Calculate the differential operating profit (loss). (Losses and amounts to be deducted should be indicated with a minus sign.) Show less Differential revenues Differential costs Fixed Variable

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

Business Accounting Volume 2

Authors: Frank Wood

4th Edition

0582413435, 978-0582413436

More Books

Students also viewed these Accounting questions

Question

=+b) Should the company send the fact-finding trip? Explain.

Answered: 1 week ago

Question

3. Describe the process of a union drive and election.

Answered: 1 week ago

Question

2. What appeals processes are open to this person?

Answered: 1 week ago