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please solve as soon as you can i'll rate the thumps up Print Fine Company produces and sells ribbon cartridges for electronic printers. The ribbons

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please solve as soon as you can
i'll rate the thumps up
image text in transcribed
Print Fine Company produces and sells ribbon cartridges for electronic printers. The ribbons are sold to computer dealers for $5.35 each. The firm controller has determined the following costs are currently required for the ribbons: Fixed costs per month are $27,000, of which 60% is manufacturing overhead. Variable costs per ribbon: Direct materials $2.00 Direct labor 0.40 Manufacturing overhead 0.35 Selling 0.05 The variable selling costs are freight charges incurred to ship the ribbons to the retail outlets. The firm has the capacity to produce 30,000 ribbons per month without working overtime, although the current production and sale level is only 25,000 ribbons. An importer in china has offered to buy 8,000 ribbons at $4.75 cach. The importer would pay 80% of the freight costs, but Print Fine estimates that additional selling and administrative expenses of $900 would be required with the offer. Assume that the firm can work overtime to produce any ribbons required in excess of its production capacity of 30,000. Direct labor costs for ribbons produced during overtime would increase by 40%, while direct marterials costs for ribbons produced during overtime would decline by 10% as a result of taking additional discount from the supplier. Prepare a relevant analysis to evaluate the effect of this special order on Kirk's profitability using the below template. Current Situation Station with the Sales revenue Direct materials Direct labor Variable overhead Variable marketing and administrative Contribution margin $ Fored Manufacturing Faxed Marketing and Administrative Operating profit Question 2 Modern Company has four divisions. The budgeted revenues and expenses for each division for 2021 follows: Division B D Sales $504,000 $948,000 $960,000 $1.240,000 Cost of goods sold 440,000 930,000 765.000 925,000 Selling & admin costs 96,000 202,500 144,000 210,000 Operating income (loss) (32.000) S(184,500) $51,000 $105,000 Further analysis of costs reveals the following percentages of variable costs in each division: A B C D Cost of goods sold 90%80%90%85% Selling & admin costs 50% 50% 60% 60% Closing down any division would result in a savings of 40% of the fixed costs of that division. Required: 1. Calculate the increase or decrease in operating income if Modern Company closes division B using the below table: Item 2. What factors should the top management of Modern Company consider before making a decision

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