Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1. Demonstrate how Garner arrives at the $48.76 order-filling cost per unitQuestion 2Question 3 Gamer Industries manufactures precision tcels. The firm uses an actiyity-based

Question 1. Demonstrate how Garner arrives at the $48.76 order-filling cost per unitQuestion 2Question 3

image text in transcribed
Gamer Industries manufactures precision tcels. The firm uses an actiyity-based ccstihg system. CED Deb Gamer is yery prcud cf the accuracy cf the system in determining precinct ccsts. She ncticed that since the installment cf the ABC: system 10 years earlier the rm had beccme much mcre ccmpetitiye in all aspects cf the business and eamed an increasing armunt cf prcts every year. In the last two years the rm scld 0.523 millicn units tc 4,?00 custdmers each year. The manufacturing ccst is $300 per unit. In additicn, Gamer has determined that the crder- lling ccst is $4835 per unit. The $405.00 selling price per unit includes 10% markup tc ccyer administrative ccsts and prcts. The crder-lling ccst per unit is determined based en the n'n's ccsts fer crder-lling actiyities. Order-lling capacity can be added in blacks cf 50 crders. Each blc-clt ccsts $50,000. In addition, the rm incurs $1,500 erder-lling ccsts per crder. Garner seryes twc types cfcustcmers designated as PC {Preferred Custcmer} and SC {Small Custcmer]. Each cf the 100 PCs buys, ch ayerage, 4,000 units in hard crders. The rm also sells 123,000 units to 1,000 SCs. On average each SC buys 123 units in 10 crders. Ed Cheap, 3 buyer for cne PC, ccmplains about the high price he is paying. Cheap claims that he has been cffered a price at $400 per unit and threatens tc take his business elsewhere. IGarner dces net give in because the $400 price Cheap demands is belcw ccst. Besides, she has recently raised the price tc SC te $503.25 per unit and experienced nc decline in crders. Required: ' emonstrate how Garner arrives at the $4336 order-lling oost per unit. Tswnuueuuuem Numsuarmwum TotaieLn'ItheroIH-cda Coaiperltlod: Tdicodfd-'oda TntaiI'lLH'I'lef-'' Pumas-detrimental Towmwmr Total ammonites: I. ll Total uni-lam WHERE coup- unit I nihi- 2- What would he the amount of loss {prot} per unit if Gamer sells to Cheap at $4M per unit? {Do not round your inten'nediate calculations. Loss amounts should be indicated with a minus sign. Round your answer to 2 decimal places.) .1... ... 3- What is the amount of loss [prot] per unit at the $553.25 selling price per unit for units sold to 56'? {Loss amounts should be indicated with a minus sign. Round your lntennediate calculations to 2 decimal places: m

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

Financial Accounting in an Economic Context

Authors: Jamie Pratt

8th Edition

9781118139424, 9781118139431, 470635290, 1118139429, 1118139437, 978-0470635292

More Books

Students also viewed these Accounting questions

Question

Summarize the findings of behavior therapy outcome research.

Answered: 1 week ago