Question Completion Status: 2 3 5 1 7 10 8 11 12 135 A Moving to another question will save this response Question 10 of 15 Question 10 10 points Save Answer The Dubs Mision of Fast Company (the parent company produces wheels for off-road sport vehicles. Dubs has two products, 1 and 2. The two products only differ in how they are marketed Product 1 is sold in bulk to customizing shops, while Product 2 is sold directly to consumers. Dub's estimated operating data for the year follows Product 1: Revenues... $300,000; Var Mfg... $160,000; Var G&A.. $40,000; CM ... 5100,000, Fixed Mfg... $24,000 Fixed G&A ... 536,000; Op. Profits... $40,000Unit Sales ... 1,000. Product 2: Revenues... 5400,000; Var Mfg. 5160,000, Var GRA... 560,000; CM .. $180,000; Fixed Mfg... $32,000; Fixed GBA. $48.000, Op. Profits ..100,000 Unit Sales . 1,000. Unless otherwise stated assume the fixed costs given above are allocated costs and unavoidable. To simplify this example, assume Dubs is operating below its capacity of 2,500 units and it is producing and selling 1,000 units each of P1 and P2. As part of the manufacture of wheels Dubs also manufactures a set of wheel (ug) nuts for each wheel. A supplier has offered to sell Dubs 2,000 sets of wheel nuts for $30 per set. The costs of the wheel nuts are included in the cost of the wheels. The accounting records for Dubs assigns the following costs to the manufacture of a Wheel nutset: Direct Materials -> $12.00: Direct Labor $8.00; and Variable Mig, OH -> 59.00. At the current level of production, fixed manufacturing costs traceable to the wheel nuts amount to 512.000 per year in total and relate to machinery that could be sold to another company. What is the total amount Dubs would save per year by accepting the suppliers offer? If it would be more expensive to buy from the supplier express your answer as a negative number such as 2000 Question Completion Status: 1 3 2 40 5 6 10 7 12 11 14 15 A Moving to another question will save this response. Question 11 of 15 > Question 11 10 points Save Answer The Dubs Division of Fast Company (the parent company) produces wheels for off-road sport vehicles, Dubs has two products, 1 and 2. The two products only differ in how they are marketed. Product is sold in bulk to customizing shops, while Product 2 is sold directly to consumers. Dub's estimated operating data for the year follows. Product 1: Revenues... $300,000; Var Mfg. 5160,000; Var G&A... $40,000; CM...100,000Fixed Mfg... $24,000 Fixed GEA ... 536,000; Op. Profits... $40,000, Unit Sales ... 1,000. Product 2: Revenues $400,000; Var Mig ..$160,000; Var GRA.. $60,000; CM ..$180,000; Fixed Mfg... $32,000; Fixed G&A $18,000; Op. Profits ....$100,000; Unit Sales ... 1,000. Unless otherwise stated assume the fixed costs given above are allocated costs and unavoidable. To simplify this example, assume Dubs is operating at its capacity of 2,000 units and it is producing and selling 1.000 units each of P1 and P2. As a result of increased foreign competition Dubs forecasts it would have to cut the unit price of P1 by 25% to maintain its sales volume. The accounting records for Dubs indicate that none of the fixed manufacturing overhead or foxed General and Administrative costs are specifically traceable to the manufacture and sale of P1. Rather than cut the price of P1, what would be the total company profitif Dubs stops production of P1 and only produces 1,000 units of P2? if the total profits result in a loss you should express your answer as a negative number such as-2000 Question 11 of 15 Moving to another question will save this response
