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Ratliff Appliances Company makes a household appliance with model number RM 1 6 . The goal for 2 0 2 0 is to reduce direct
Ratliff Appliances Company makes a household appliance with model number RM The goal for is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of RM units that can be produced. The industry market size for appliances increased from to The following additional data are available for and :
Units Produced & Sold
Selling Price $ $
Direct Materials square feet
Direct Material Costs per square foot $ $
Manufacturing capacity units
Total Conversion Costs $ $
Conversion Costs per unit of capacity $ $
The industry market size for appliances increased from to How much of Ratliff Cos change in income from to is due to just the industry market size factor?
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