Question 1.
Question 2.
Question 3.
Members of the board of directors of Security Team have received the following operating income data for the year ended May 31,2024 : (Click the icon to view the operating income data.) by $83,000 and decrease fixed selling and administrative expenses by $14,000. Read the requirements. Data table Reauirement 1. Prenare a differential analvsis to shnw whether Securitv Team should dron the industrial systems product line. (Use parentheses or a minus sign t Requirements 1. Prepare a differential analysis to show whether Security Team should drop the industrial systems product line. 2. Prepare contribution margin income statements to show Security Team's total operating income under the two alternatives: (a) with the industrial systems line and (b) without the line. Compare the difference between the two alternatives' income numbers to your answer to Requirement 1 . 3. What have you learned from the comparison in Requirement 2 ? Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Rec-Cardz with a special order. The Hall of Fame wishes Rec-Cardz's total production cost is $0.53 per pack, as follows: to purchase 57,000 baseball card packs for a special promotional campaign and offers $0.33 per pack, a total of $18,810. (Click the icon to view the cost information.) Rec - Cardz has enough excess capacity to handle the special order. Read the requirements. Requirement 1. Prepare a differential analysis to determine whether Rec-Cardz should accept the special sales order. (Enter decreases to profits with a parentheses or minus sign.) Expected increase in revenues Expected increase in expenses Variable manufacturing cost: Data table Requirements 1. Prepare a differential analysis to determine whether Rec Cardz should accept the special sales order. 2. Now assume that the Hall of Fame wants special hologram baseball cards. Rec - Cardz will spend $5,700 to develop this hologram, which will be useless after the special order is completed. Should Rec-Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.33 per pack? SnowDreams operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. 1. (Click the icon to view the information.) Read the requirements. Complete the following table to calculate SnowDreams' projected income. More info Investors would like to earn a 15% return on investment on the company's $148,500,000 of assets. SnowDreams projects fixed costs to be $35,000,000 for the (Round the percentage to the nearest hundredth percent, X.XX%.) ski season. The resort serves about 725,000 skiers and snowboarders each season. SnowDreams's projected operating income (profit) as a percent of assets amounts to % Variable costs are about $7 per guest. Last year, due to its favorable reputation, SnowDreams was a price-setter and was able to charge $5 more per lift ticket than its competitors without a reduction in the number of customers it received. Will investors be happy with this profit level? Assume that SnowDreams' reputation has diminished and other resorts in the vicinity No, because the expected profit level does not meet the investors' target return on assets. are charging only $81 per lift ticket. SnowDreams has become a price-taker and will not be able to charge more than its competitors. At the market price, SnowDreams Requirement 2. Assume SnowDreams has found ways to cut its fixed costs to $32,800,000. What is its new target variable cost per skier/snowboarder? Complete the following table to calculate SnowDreams' new target variable cost per customer. (Round your final answer to the nearest cent.) Requirements 1. If SnowDreams cannot reduce its costs, what profit will it earn? State your answer in dollars and as a percent of assets. Will investors be happy with the profit level? 2. Assume SnowDreams has found ways to cut its fixed costs to $32,800,000. What is its new target variable cost per skier/snowboarder? Members of the board of directors of Security Team have received the following operating income data for the year ended May 31,2024 : (Click the icon to view the operating income data.) by $83,000 and decrease fixed selling and administrative expenses by $14,000. Read the requirements. Data table Reauirement 1. Prenare a differential analvsis to shnw whether Securitv Team should dron the industrial systems product line. (Use parentheses or a minus sign t Requirements 1. Prepare a differential analysis to show whether Security Team should drop the industrial systems product line. 2. Prepare contribution margin income statements to show Security Team's total operating income under the two alternatives: (a) with the industrial systems line and (b) without the line. Compare the difference between the two alternatives' income numbers to your answer to Requirement 1 . 3. What have you learned from the comparison in Requirement 2 ? Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Rec-Cardz with a special order. The Hall of Fame wishes Rec-Cardz's total production cost is $0.53 per pack, as follows: to purchase 57,000 baseball card packs for a special promotional campaign and offers $0.33 per pack, a total of $18,810. (Click the icon to view the cost information.) Rec - Cardz has enough excess capacity to handle the special order. Read the requirements. Requirement 1. Prepare a differential analysis to determine whether Rec-Cardz should accept the special sales order. (Enter decreases to profits with a parentheses or minus sign.) Expected increase in revenues Expected increase in expenses Variable manufacturing cost: Data table Requirements 1. Prepare a differential analysis to determine whether Rec Cardz should accept the special sales order. 2. Now assume that the Hall of Fame wants special hologram baseball cards. Rec - Cardz will spend $5,700 to develop this hologram, which will be useless after the special order is completed. Should Rec-Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.33 per pack? SnowDreams operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. 1. (Click the icon to view the information.) Read the requirements. Complete the following table to calculate SnowDreams' projected income. More info Investors would like to earn a 15% return on investment on the company's $148,500,000 of assets. SnowDreams projects fixed costs to be $35,000,000 for the (Round the percentage to the nearest hundredth percent, X.XX%.) ski season. The resort serves about 725,000 skiers and snowboarders each season. SnowDreams's projected operating income (profit) as a percent of assets amounts to % Variable costs are about $7 per guest. Last year, due to its favorable reputation, SnowDreams was a price-setter and was able to charge $5 more per lift ticket than its competitors without a reduction in the number of customers it received. Will investors be happy with this profit level? Assume that SnowDreams' reputation has diminished and other resorts in the vicinity No, because the expected profit level does not meet the investors' target return on assets. are charging only $81 per lift ticket. SnowDreams has become a price-taker and will not be able to charge more than its competitors. At the market price, SnowDreams Requirement 2. Assume SnowDreams has found ways to cut its fixed costs to $32,800,000. What is its new target variable cost per skier/snowboarder? Complete the following table to calculate SnowDreams' new target variable cost per customer. (Round your final answer to the nearest cent.) Requirements 1. If SnowDreams cannot reduce its costs, what profit will it earn? State your answer in dollars and as a percent of assets. Will investors be happy with the profit level? 2. Assume SnowDreams has found ways to cut its fixed costs to $32,800,000. What is its new target variable cost per skier/snowboarder
