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QS 10-6 Make or buy LO P1 Kando Company incurs a $10.00 per unit cost for Product A, which it currently manufactures and sells for
QS 10-6 Make or buy LO P1 Kando Company incurs a $10.00 per unit cost for Product A, which it currently manufactures and sells for $13.50 per unit. Instead of manufacturing and selling this product, the company can purchase it for $7.00 per unit and sell it for $1170 per unit. If it does so, unit sales would remain unchanged and $7.00 of the $10.00 per unit costs of Product A would be eliminated. 1. Prepare Incremental cost analysis. Should the company continue to manufacture Product A or purchase it for resale? (Round your answers to 2 decimal places.) Make Buy Selling price per unit Cost per unit to make Cost per unit to buy Cost per unit not eliminated it bought Income per unit Company should Nov QS 10-10 Scrap or rework LO P2 Signal mistakenly produced 1,200 defective cell phones. The phones cost $64 each to produce. A salvage company will buy the defective phones as they are for $39 each. It would cost Signal $90 per phone to rework the phones. If the phones are reworked, Signal could sell them for $132 each. Signal has excess capacity, Should Signal scrap or rework the phones? Scrap Rework Sales Rework costs Income QS 10-11 Selection of sales mix LO P3 Excel Memory Company can sell all units of computer memory and that it can produce, but it has limited production capacity, it can produce two units of X per hour or three units of Y per hout, and it has 4,300 production hours available. Contribution margin is $5 for product X and $4 for product Y. 1. Calculate contribution margin per production hour. 2. What is the most profitable sales mix for this Company? Complete this question by entering your answers in the tabs below. Required 1 Iequired 2 Calculate contribution margin per production hour, Contribution Margin per Production Hour Product X Product Contribution margin per production hout Required 2 > QS 10-11 Selection of sales mix LO P3 Excel Memory Company can sell all units of computer memory X and Y that it can produce, but it has limited production capacity. It can produce two units of X per hour or three units of Y per hour, and it has 4,300 production hours available. Contribution margin is $5 for product X and $4 for product Y. 1. Calculate contribution margin per production hour. 2. What is the most profitable sales mix for this Company? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the most profitable sales mix for this Company? What is the most profitable sales mix for this Company?
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