Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Process or Sell Product 319 is produced for $3.34 per gallon. Product 319 can be sold without additional processing for $4.08 per gallon, or processed

image text in transcribedimage text in transcribedimage text in transcribed

Process or Sell Product 319 is produced for $3.34 per gallon. Product 319 can be sold without additional processing for $4.08 per gallon, or processed further into Product R33 at an additional cost of $0.43 per gallon. Product R33 can be sold for $4.38 per gallon. a. Prepare a differential analysis dated April 30 on whether to sell Product 319 (Alternative 1) or process further into Product R33 (Alternative 2). Round your answers to the nearest cent. If required, use a minus sign to indicate a loss. Differential Analysis Sell Product 19 (Alt. 1) or Process Further into Product R33 (Alt. 2) April 30 Process Sell Further into Differential Product 319 Effects (Alternative 1) Product R33 (Alternative 2) (Alternative 2) Revenues, per unit Costs, per unit Profit (loss), per unit Replace Equipment A machine with a book value of $246,600 has an estimated six-year life. A proposal is offered to sell the old machine for $215,100 and replace it with a new machine at a cost of $280,900. The new machine has a six-year life with no residual value. The new machine would reduce annual direct labor costs from $49,000 to $39,200. a. Prepare a differential analysis dated April 11 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2). If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Continue Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) April 11 Continue Replace Differential with Old Old Effects Machine Machine (Alternative 2) (Alternative 1) (Alternative 2) Revenues: Proceeds from sale of old machine Costs: Purchase price Direct labor (6 years) Profit (Loss) $ Accept Business at Special Price Product A is normally sold for $46 per unit. A special price of $32 is offered for the export market. The variable production cost is $26 per unit. An additional export tariff of 11% of revenue must be paid for all export products. Assume there is sufficient capacity for the special order. a. Prepare a differential analysis dated March 16 on whether to reject (Alternative 1) or accept (Alternative 2) the special order. If required, round your answers to two decimal places. If an amount is zero, enter "O". Differential Analysis Reject Order (Alt. 1) or Accept Order (Alt. 2) March 16 Reject Accept Differential Order Order Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues, per unit Costs: Variable manufacturing costs, per unit Export tariff, per unit Profit (loss), per unit $

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

Accounting Fundamentals For Health Care Management

Authors: Steven A. Finkler, David M. Ward, Thad Calabrese

3rd Edition

1284124932, 9781284124934

More Books

Students also viewed these Accounting questions