Problem Solving Problem 1.1- Assuming that the company has excess capacity that is enough to produce this special order without affecting sales to regular customers, and the company wants to improve its profitability, the price that is acceptable for this special one-time order is in excess of Ales Company is a mature of electronic twitches. One of their products, Switch ed as a component of most electrical places TO 24 TS Seory Switches the following and data per unit Selling Price Variable Materials Labor Factory Overhead Shing and handling Fed Co Factory Overad Selling and administratie Total 8 36 34 VO 110 During the month Alhasceived special one-time order for 1.500 ofery with 180 110 50 Problem 12 - Assume that Alex is operating at full capacity and that it does not want to incur a loss from this order the minimum acceptable price is INO Ales company's maturer of electronic wide one of the produserer Sised as a component of all electrical appliances Sensory Switch as the following financial duta perut Selling Price Variable Costa Materials 24 Labor Factory Orad 15 Song and handling and Costa Factory Owerhead 6 Selling and administrate 60 110 During the month less received special, one-time order for 1.500 units of sensory switch 10 A O 110 60 50 Problem 13 - Assume that the excess capacity available for the special order is only 1000 units, so that if the order were accepted. Alex would have to reduce sales to regular customers. What is the minimum price for this special order Alex Companyia manufacturer of electronic switches. One of their products, so Swinchised as a component of most electrical appliances SO Sensory Switch has the following financial data per Selling Price Variate Cout Materials 24 15 15 60 Factory Overhead Shipping and dig Fland Cats Factory Overad Selling ministratie E 14 so 110 During the month Ales tas randa special one-time order for 1.500 units of sensory switch 250 110 60 100 Problem 21- Assume that should Sanger outsource the Foot Pedal, the facilities used to produce this component part would just remain idle. Which alternative (outsource or insource) is more advantageous and by how much? songer Sewing Machines les one unit of a component part, the Foot Pedal, for each unit of it product. The cost to produce a wit of Foot Pedal is as follows: Direct Materiali 500 Materials handing 50 Direct Labor 950 Factory overhead 1100 Total cost part 1400 Materials handing out is applid based on the cost of materials and purchased components Factory overhead is applied on direct labor costos of the applied factory overhead cost in fined Songer is considering to outsource the Foot Pedal A supplier, Padyak Corp. manufacturer of Foot Pedals, has offered to supply the part to Senger at a price of 92,200 Songer's age requirement for Foot Pedals per month 500 units. Accordingly. Padyak can meet this great should Songer decide to store this component part. Outsource P30,000 OO insource P80.000 O Outs P0.000 . in outce - P350,000 Problem 2.2 Assume of the Foot Pedalis purchased the facilities used to produce it could be rented to another company for P100,000. Which alternative (outsourced or mource)is more advantageous and how much is the net advantage? Songer Sewing Machines in one of a component part, the Four Pedal for each unit of its product. The cost to produce a unit of Foot Pedal is as follows Direct Materials 500 Materials anding 50 Direct Labor 350 Factory overhead 1900 Total content 1400 Materials handing costs apped based on the cost of materials and purchased components Factory overhead is poled on direct labor cost. On of the applied factory overed costs Ted Songer is considering to the Foot Pedal Applier, Pak Gorpa man of Foot Pedalhas offered to supply the part to Songerate of P2.200 Sorger's rement for Foot Pedals per month is 500 units. According. Padyak can meetinquirement should Sanger decide to the component part. Outsource-P100.000 insource.P70000 Outsource-P20.000 Inource:130,000 Problem 3.1 - If the company takes the most profitable action with respecto to each of the product, it should Surga Corporation rest, X Y Z romenout. The produsented at the pouther. The month, the band on the whicle of Material 1.00 Felony 2000 Taul 200.000 Animation to the precisare is the following tin UNIT SALE PRICE A Production in A 41 25 30 10 PY det 75 Sell all the products at the split-off point Process all the products beyond the split off point O Sell product at the split off point and process further Products x and Z Sell products X and Z at split off point and process Product further Problem 3.2 - How much is the total gross profit if the company took the most profitable action with respect to each of the three products? Surg Corporate, XY, Z, from one. The products can be the ponto promote the for the month, allocated among the bed on the me physical, foot Mais 1 30,000 Fullwyd 200,000 A formation about the verwiewing UNT SALES PRICE Al A Cost further 350 NO SORO 1000 3000 ES 20 10 Pro P890.000 P430,000 P535.000 P490.000 3 Problem 4.1 - If the objective is to maximize the total company profit which store should be closed? Nucup Company or two stores in Luonone in Manila and another in QC The per results for October 200A, which are representatives are condensed as follows: Marita Store QC Store Total Sales 400,000.00 500.000,00 1.000.000.00 Variable costs 160,000.00 420,000.00 50,000.00 Contebution Margin 240,000.00 10,000.00 420,000.00 Directed Cones 100,000.00 200,000.00 100,000.00 Stove margin 140,000.00 (20,000.001 120,000.00 Indirected at allocated hered on pesos 20,000.00 10,000.00 50,000.00 Operating income 120.000,00 150,000.00 70,000.00 Additional info 1. The fachow's direct and cont cannot be eliminated ven if the ordered 2. If the actor icons, the Manila Store's we would decrease by 202 Hosing the Manila vie would not affect the con le Manila Store OC Store Both Neither Problem 4.2 - If the QC store is closed, the company's total income would points increase (decrease) by: Nucup Company operates two stores in Luton one in Manila and another in the operating results for October XOA, which are representatives of month, are condensed as follows: Manila Store Store Total Sales 400,000.00 600,000.00 1,000,000.00 Variable costs 160,000.00 420,000.00 580,000.00 Contribution Margie 240,000.00 180,000.00 420,000.00 Directed Costs 100,000.00 200,000.00 300,000.00 Store marg 140,000.00 120,000.00 120,000.00 Indirect feed costs, allocated based on pesonales 20.000.00 30,000.00 50,000.00 Operaeng income 120.000,00 150,000.00 70,000.00 Additional info 1. Thirty percent of each store's direct flued cont cannot be eliminated even if there is deed 2. the store is doned, the Manila Store's sales would decrease by 20%. However, clothe Manila store would let the store's sales (88,000) 40,000 180.000 100,000 Problem 43 - In order to improve the profitability of the store, Nucup Company is considering a promotional campaign that would not affect the Manila Store. The campaign would cost P300,000 annually, and it is expected to increase the OC Store's sales by 20%. The promotional material would result in a monthly increase (decrease in Nucup Company's operating income of Comes were in the 2004 where the des Marine Core Total 0.000.000.000.000.000 000.00 4.000.00 5.000.00 Cat Mar 2 DOO 00,000.00 Civets 100.000,00 200.000.00 100,000.00 Mw == * 140.000,00 2.000.000 120.000.00 Inerted, we bed 20.000.000.00 One 120,000.00 10.000.00 20.000.00 Aine 1 Thirty percent of each one directed control beeintred an interiores de 2. Ce the Manila to we would by 30. However, in the Master wife C's sales 36.000 (364.0001 11.000 (88,0001