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Process or Sell Product J19 is produced for $3.30 per gallon. Product J19 can be sold without additional processing for $4.27 per gallon, or processed
Process or Sell Product J19 is produced for $3.30 per gallon. Product J19 can be sold without additional processing for $4.27 per gallon, or processed further into Product R33 at an additional cost of $0.38 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 J19 (Alt. 1) or Process Further into Product R33 (Alt. 2) April 30 Process Sell Differential Further into Product 319 Effects Product R33 (Alternative 1) (Alternative 2) (Alternative 2) Revenues, per unit Costs, per unit Profit (loss), per unit b. Should Product J19 be sold (Alternative 1) or processed further into Product R33 (Alternative 2)? Accept Business at Special Price Product A is normally sold for $49 per unit. A special price of $31 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 "0". 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 b. Should the special order be rejected (Alternative 1) or accepted (Alternative 2)? Make or Buy A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $160 per unit (100 bottles), including fixed costs of $35 per unit. A proposal is offered to purchase small bottles from an outside source for $95 per unit, plus $9 per unit for freight. a. Prepare a differential analysis dated January 25 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles, assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". Differential Analysis Make Bottles (Alt. 1) or Buy Bottles (Alt. 2) January 25 Make Buy Differential Bottles Bottles Effect (Alternative 1) (Alternative 2) (Alternative 2) Unit costs: Purchase price $ Freight Variable costs Fixed factory overhead Total unit costs b. Determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles
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