questions will be asked with data 1 and 2

data put in other photos

B 2 3 Calculate the following values that adds up to Costs of Goods Sold from the Income Statement in the sheet Data 1. The required information can be found in the Table 'Info'. a) Direct materials b) Direct labor c) Variable OH d) Fixed OH Find the following values. a) The contribution margin of product B. b) Net income The Data2 sheet of this workbook contains Bissan data and the offer for Lowerium bikes from B101, the competitor of MikRos. Calculate the following values a) What is the total variable cost of producing one Lowerium Bike? b) What is the contribution margin of a Lowerium Bike? Bissan is worried about cannibalization if they accept the deal; they fear the Lowerium will compete with their regular Bissan bikes and hurt their sales. What is the maximum amount of cannibalization that Bissan can afford in their regular lines given the extra revenue generated by the Lowerium bikes? Bissan expects to lose about 8,000 units of regular sales over the year if they accept the deal, and will decrease their production of regular bikes accordingly. Considering all the changes in sales production levels, and production costs find the following values. Your answers should be positive numbers Revenue a) Costs of Goods Sold b) Net Income c) c) 4 20 E ear 2016 "roduced (units) Revenue/unit Direct materials/unit Direct labor/unit Overhead*/unit Info A 900.000 0,2 0,04 0,01 0,005 B 275.000 0,28 0,08 0,01 0,005 12.000 9,03 4,9 1 0,5 *The fixed Overhead can be calculated as the 60% of varible overhead, based on 2016 production Selling/Admin Expenses 55.000 Tax rate 0 Income Statement 365.360 Only complete the highlighted cells. Other cells are pre-filled. Revenue Cost of good sold: Direct materials Direct labor Variable OH Fixed OH Gross Profit Selling/Admin Expenses Profit Before Tax Income Tax Expense Net Income 365.360+ 1 EXHIBITA Currency=Euros 2 3 BISSAN BIKE INC 4 Balance Sheet 5 As at December 31, 2013 6 7 Assets 8 Liabilities and Owners' Equity 9 Cash 254.000 Bank Indebtedness 10 Accounts Receivable. 1.701.000 1.897 000 Accounts Payable. 11 Raw Materials Inventory 1.004 000 879.000 12 Work in Process Inventory Long-Term Loans Payable 1.191.000 1.298.000 13 Finished Goods.... 2.543.000 Total Liabilities 14 Plant and Equipment (net) 3.967.000 4.001.000 15 Shareholders' Equity 6 834 000 16 Total Assets 10.801.000 Total Liabilities and Shareholders' Equity 10.801.000 17 18 Production (Bikes) 150.000 19 BISSAN BIKE INC Total Fixed Overhead 7.087 500 20 Income Statement Per Bike Fixed Overhead 4725 21 For the Year End - December 31, 2013 "Per bike fored overhead is based on production of 150,000 units 22 23 Revenue 54.750.000 Estimated costs of producing the average Bissan bike 24 Cost of Goods Sold (avg. unit costs, assuming a constant mix of models). 25 Gross Margin 14.437500 Direct Materials 127.00 26 Selling and Administrative Expens Direct Labour 63,00 27 Income before taxes 3.487 500 Variable Overhead (50% of Direct Labour) 31,50 28 Income tax expense (1,621 689) Per Bike Foxed Overhead 47.25 29 Net Income 1.865.813 Estimated production cost per bike 268,75 30 31 32 EXHIBIT B - The Other Offer 33 34 1. Estimated costs of producing the average Lowerium bike (avg. unit costs, assuming a constant mix of models): 35 Direct Materials 16% lower than the average Bissan bike 36 Dired Labour 12 EUR less than the average sissan bike 45% of Dited Labour Variable Overhead 37 38 Total Fored Overhead 7.087.500 (the 'perbike amount depends on production levels) 39 40 2. Unit price and annual volume: 23.000 mountain bikes 41 MIKRos has guaranteed an order 296 EUR 42 and will pay an average price of 43 44 3. Asset related costs include: 46% 45 Effective tax rate Data1 Data 2 B 2 3 Calculate the following values that adds up to Costs of Goods Sold from the Income Statement in the sheet Data 1. The required information can be found in the Table 'Info'. a) Direct materials b) Direct labor c) Variable OH d) Fixed OH Find the following values. a) The contribution margin of product B. b) Net income The Data2 sheet of this workbook contains Bissan data and the offer for Lowerium bikes from B101, the competitor of MikRos. Calculate the following values a) What is the total variable cost of producing one Lowerium Bike? b) What is the contribution margin of a Lowerium Bike? Bissan is worried about cannibalization if they accept the deal; they fear the Lowerium will compete with their regular Bissan bikes and hurt their sales. What is the maximum amount of cannibalization that Bissan can afford in their regular lines given the extra revenue generated by the Lowerium bikes? Bissan expects to lose about 8,000 units of regular sales over the year if they accept the deal, and will decrease their production of regular bikes accordingly. Considering all the changes in sales production levels, and production costs find the following values. Your answers should be positive numbers Revenue a) Costs of Goods Sold b) Net Income c) c) 4 20 E ear 2016 "roduced (units) Revenue/unit Direct materials/unit Direct labor/unit Overhead*/unit Info A 900.000 0,2 0,04 0,01 0,005 B 275.000 0,28 0,08 0,01 0,005 12.000 9,03 4,9 1 0,5 *The fixed Overhead can be calculated as the 60% of varible overhead, based on 2016 production Selling/Admin Expenses 55.000 Tax rate 0 Income Statement 365.360 Only complete the highlighted cells. Other cells are pre-filled. Revenue Cost of good sold: Direct materials Direct labor Variable OH Fixed OH Gross Profit Selling/Admin Expenses Profit Before Tax Income Tax Expense Net Income 365.360+ 1 EXHIBITA Currency=Euros 2 3 BISSAN BIKE INC 4 Balance Sheet 5 As at December 31, 2013 6 7 Assets 8 Liabilities and Owners' Equity 9 Cash 254.000 Bank Indebtedness 10 Accounts Receivable. 1.701.000 1.897 000 Accounts Payable. 11 Raw Materials Inventory 1.004 000 879.000 12 Work in Process Inventory Long-Term Loans Payable 1.191.000 1.298.000 13 Finished Goods.... 2.543.000 Total Liabilities 14 Plant and Equipment (net) 3.967.000 4.001.000 15 Shareholders' Equity 6 834 000 16 Total Assets 10.801.000 Total Liabilities and Shareholders' Equity 10.801.000 17 18 Production (Bikes) 150.000 19 BISSAN BIKE INC Total Fixed Overhead 7.087 500 20 Income Statement Per Bike Fixed Overhead 4725 21 For the Year End - December 31, 2013 "Per bike fored overhead is based on production of 150,000 units 22 23 Revenue 54.750.000 Estimated costs of producing the average Bissan bike 24 Cost of Goods Sold (avg. unit costs, assuming a constant mix of models). 25 Gross Margin 14.437500 Direct Materials 127.00 26 Selling and Administrative Expens Direct Labour 63,00 27 Income before taxes 3.487 500 Variable Overhead (50% of Direct Labour) 31,50 28 Income tax expense (1,621 689) Per Bike Foxed Overhead 47.25 29 Net Income 1.865.813 Estimated production cost per bike 268,75 30 31 32 EXHIBIT B - The Other Offer 33 34 1. Estimated costs of producing the average Lowerium bike (avg. unit costs, assuming a constant mix of models): 35 Direct Materials 16% lower than the average Bissan bike 36 Dired Labour 12 EUR less than the average sissan bike 45% of Dited Labour Variable Overhead 37 38 Total Fored Overhead 7.087.500 (the 'perbike amount depends on production levels) 39 40 2. Unit price and annual volume: 23.000 mountain bikes 41 MIKRos has guaranteed an order 296 EUR 42 and will pay an average price of 43 44 3. Asset related costs include: 46% 45 Effective tax rate Data1 Data 2