Starung Questions Differential Analysis Instructions Crystal Displays Inc. recenty began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows: 1 Variable costs per unit Direct materials $120.00 Direct Jabor 30.00 Factory overhead 5000 Selling and administrative expenses 35,00 Total $235.00 Fixed costs $250,000.00 Factory overhead Selling and administrative expenses 15000000 Previous Check My Work Submit Assignment for Grading Save and Exit All work saved. W 10 MacBook Air Starting Questions 1S and Anmount Differential Analysis Instructions Crystal Displays Inc. is currently considering establishing a selling price for flat panel displays. The president of Crystal Displays has decided to use the cost-plus approa product pricing and has indicated that the displays must eam a 15% rate of return on invested assets. Required: 1. Determine the amount of desired protit from the production and sale of flat panel displays 2. Assuming that the product cost concept is used, determine (a) the cost amount per unit, (b) the markup percentage (rounded to two decimal places), and (c) the selling price of flat panel displays 3. (Appendix) Assuming that the total cost.concept is used, determine (a) the cost amount per unit, (b) the markup percentage (rounded to two decimalplaces), and (c) the selling price of flat panel displays 4. (Appendix) Assuming that the variable cost concept is used, determine (a) the cost amount per unit, (b) the markup percentage (frounded to twp decimal places), and (c) the selling price of flat panel displays 5. Comment on any additional considerations that could influence establishing the selling price for flat panel displays 6. Assume that as of August 1, 3.000 units of flat panel displays have been produced and sold during the current year Analysis of the domestic market indicates that 2.000 additional units are expected to be sold during the remainder of the year at the normal product price determined under the product cost concept. On August 3, Crystal Displays Inc received an offer from Maple Leaf Visual Inc. for 800 units of fat panel displays at $225 each. Maple Leaf Visual Inc will market the units in Canada under its own brand name, and no variable seling and administrative expenses associated with the sale will be incurred by Crystal Displays Inc. The additional business is not expected to affect the Previous Check My Work Submit Assignment for Grad Save and Exit All work saved 10 MacBook Air ne seling price for tial panel displays 6. Assume that as of August 1, 3,000 units of flat panel displays have been produced and sold duning the current year. Analysis of the domestic market indicates that 2,000 additional units are expected to be sold during the remainder of the year at the normal product price determined under the product cost concept. On August 3, Crystal Displays Inc. received an offer from Maple Leaf Visual Inc. for 800 units of flat panel displays at $225 each. Maple Leaf Visual Inc. will market the units in Canada under its own brand name, and novariable selling and administrative expenses associated with the sale will be incurred by Crystal Displays inc. The additional business is not expected to affect the domestic sales of flat panel displays, and the additional units could be produced using existing factory, selling, and administrative capacity A. Prepare a differential analysis of the proposed sale to Maple Leaf Visual Inc. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign, If there is no amount or an amount is zero, enter "0. A colon () will automatically appear if required. B. Based on the differential analysis in part (A), should the proposal be accepted? Check My Work Submit Save and Exit All work saved. W MacBook Air Search 1. Determine the amount of desired profit from the production and sale of lat panel displays. $ 2. Assuming that the product cost concept is used, determine (a) the cost amount per unit, (b) the markup percentage (rounded to two decimal places), and (c) the seling prik of flat panel displays. Cost amount per unit Markup percentage Selling price 3. (Appendix) Assuming that the total cost.concept is used, determine (a) the cost amount per unit, (b) the markup percentage (rounded to two decimal places), and (c) the selling price of flat panel displays. Cost amount per unit Markup percentage Selling price Previous Check My Work Submit Assignment for Save and Exit All work saved. W 10 4 (Appendix) Assuming that the variable cost concept is used, determine (a) the cost amount per unit, b) the markup percentage (rounded to two decimal places, and (c) the seling price of flat panel displays Cost amount per unit Markup percentage Seling price 5. Comment on any additional considerations that could influence establishing the selling pricefor at panel displays The cost-plus approach price of $360 a general quideline for establishing long-run normal prices. Other considerations, such as the price of be viewed as competing products and general economic conditions of the marketplace, lead management to establish a short-nun price more or less than $360 Previous Check My Work Submit Assignment for Grading Save and Exit All work saved. W 10 MacBook Air Differential Analysis Differential Analysis Reject Order (Altenative 1) or Accept Order (Altemative 2) August 3 Differential Reject Order Accept Order Effect on Income (Altermative 1) (Atternative 2) (Alternative 2) 4 Labe) wE 10 MacBook Air
