Sheldon Co. manufactures three different models of tablet computers - TX, MX, and ZX. Data on the three models is presented below:
Use the information below to answer Question 18 - 22. Sheldon Co. manufactures three different models of tablet computers - TX, MX, and ZX. Data on the three models is presented below: Budget Information: TX MX ZX Inventory units, January 1, 2021 400 450 380 Production units in 2021 2,400 2,200 2,550 Units sold in 2021 1,750 1,670 1,730 Production units in 2022 2,100 1,820 2,000 Estimated Inventory units, December 31, 2022 450 300 400 Cost and Production Information: TX MX ZX Selling price $350 $420 $480 Unit variable cost $290 $340 $408 Machine-hours per unit 6 10 12 Avoidable fixed costs, if product line is eliminated $16,800 $12,500 $18,200 Sheldon's production capacity is 50,000 machine-hours per year. Milton Co. has offered to purchase 2,275 units of a simpler version of MX for $400. Sheldon estimates that this version of the MX would result in variable costs of $300 per unit to manufacture and 8 machine hours per unit, but an additional fixed cost of $25,000 for a new assembly machine. The order has to be either taken in full or rejected totally. If Sheldon takes the special order, it will not produce and sell MX to compete with Milton.Question 18 12 pts Please do not enter "$ , positive, increase or cash inow, and enter a negative sign \" " for negative, decrease, cost, or cash outow. Calculate the budgeted Sale units for each model for 2022. Calculate the contribution margin per unit for each model: Calculate the protability index for each model: Ranking the order of priority for production: TX units MX units ( ", or " ," for all your answers. Please enter an absolute number for ZX units Please do not enter "$", \"( )", or " ," for all your answers. Please enter an absolute numberfor positive, increase or cash inow, and enter a negative sign " " for negative, decrease, cost, or cash outow. Calculate the total production hours required for the 3 models: Hours For which model should production be reduced and by how many units? The number of units should be reduced: unhs If Sheldon can purchase additional machine hours from $ another plant, how much would Sheldon be willing to pay to meet its production requirement? MX Special Order $ $ Calculate the protability index for: Please do not enter "$", "( )", or " ," for all your answers. Please enter an absolute number for positive, increase or cash inow, and enter a negative sign " " for negative, decrease, cost, or cash outow. Calculate the sale break-even in units, if Sheldon decides to take the special order: _ units Calculate the incremental operating income to take the $ special order from Milton: Calculate the opportunity cost of losing sale of MX: $ Please do not enter "$", "( )\
