Requirements

_{1. What product mix-that is, how many units of A6 and EX4- will maximize Lelime's operating income? Show your calculations. 2. Suppose Lelime can increase the annual capacity of its regular machines by 11000 machine-hours at a cost of $ 110000. Should Lelime increase the capacity of the regular machines by 11000 machine hours? By how much will Lelime's operating income increase or decrease? Show your calculations. 3. Suppose that the capacity of the regular machines has been increased to 61000 hours. Lelime has been approached by Ward Corporation to supply 22000 units of another cutting tool, V2, for $ 165 per unit. Lelime must either accept the order for all 22000 units or reject it totally. V2 is exactly like A6 except that its variable manufacturing cost is $ 50 per unit. (It takes one hour to produce one unit of V2 on the regular machine, and variable marketing cost equals $ 20 per unit.) What product mix should Lelime choose to maximize operating income? Show your calculations.}

KE9-23 (similar to) Question Help The selling price per unit is $2,900. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,000 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs. ClearView Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2017 are as follows: E(Click to view the data.) Read the reauirements Complete the top half of the income statement for each month first, then complete the bottom portion. (Enter a "0" does not have a variance, do not select a label. Abbreviation used; Adj. Adjustment, Mfg. Manufacturing.) i Data Table -X Revenues Requirements January February March Cost of goods sold Unit data: Beginning invento Beginning inventory 0 150 150 1. Prepare income statements for ClearView in January, February, and March 2017 under (a) variable costing and (b) absorption costing. Variable manufact Production 1,000 975 1,050 Allocated fixed ma 2. Explain the difference in operating income for January, February, and March under variable costing and absorption costing. Sales 850 975 1,075 Cost of goods ava Variable costs: Deduct ending inv Manufacturing cost per unit produced 800 $ 800 S 800 A ar nradatian Print Done Operating (marketing) cost per unit sold 625 $ $ 625 $ 625 Choose from any lis. Fixed costs: Manufacturing costs $ 420,000 $ 420,000 $ 420,000 parts remaining Clear Al Operating (marketing) costs 200,000 $ 200,000 $ 200,000