The Charlotte Corporation manufacturers filing cabinets in two operations: machining and finishing. It provides the following information

Each cabinet sells for $60 and has direct material costs of $30 incurred at the start of the machining operation. Charlotte has no other variable costs. Charlotte can sell whatever output it produces. The following requirements refer only to the preceding data. There is no connection between the requirements.

t) margin al Data Table hing The ire these Machining Finishing Annual capacity 140,000 units 110,000 units 110,000 units 110,000 units Annual production Fixed operating costs (excluding direct materials) of the rear $1,100,000 $10 per unit $880,000 $8 per unit Fixed operating costs per unit produced ($1,100,000/110,000; $880,000/110,000) nits at nishing pur Print Print half the uld Done Done Chamone produces 3.000 detective us at the matto operation what is tho cost to Charlotte of the defentiva itame Enlajn u nema tionid=1&flushed=false&cld=5792396&back=https://www.mathxl.com/Student/D mework: Chapter 11 5 of 9 (0 complete) Requirements Charlotte is considering using some modern jigs and tools in the finishing operation that would increase annual finishing output by 1,650 units. The annual cost of these jigs and tools is $25,000. Should Charlotte acquire these tools? Show your calculations. 2. The production manager of the Machining Department has submitted a proposal to do faster setups that would increase the annual capacity of the Machining Department by 12,000 units and would cost $36,000 per year. Should Charlotte implement the change? Show your calculations 3. An outside contractor offers to do the finishing operation for 15,000 units at $16 per unit, double the $8 per unit that it costs Charlotte to do the finishing in-house Should Charlotte accept the subcontractor's offer? Show your calculations 4. The Halland Corporation offers to machine 5,400 units at $5 per unit, half the $10 per unit that it costs Charlotte to do the machining in-house Should Charlotte accept Halland's offer? Show your calculations 5. Charlotte produces 3,000 defective units at the machining operation. What is the cost to Charlotte of the defective items produced? Explain your answer briefly Charlotte produces 3,000 defective units at the finishing operation. What is the cost to Charlotte of the defective items produced? Explain your answer briefly Print Done Clear All t) margin al Data Table hing The ire these Machining Finishing Annual capacity 140,000 units 110,000 units 110,000 units 110,000 units Annual production Fixed operating costs (excluding direct materials) of the rear $1,100,000 $10 per unit $880,000 $8 per unit Fixed operating costs per unit produced ($1,100,000/110,000; $880,000/110,000) nits at nishing pur Print Print half the uld Done Done Chamone produces 3.000 detective us at the matto operation what is tho cost to Charlotte of the defentiva itame Enlajn u nema tionid=1&flushed=false&cld=5792396&back=https://www.mathxl.com/Student/D mework: Chapter 11 5 of 9 (0 complete) Requirements Charlotte is considering using some modern jigs and tools in the finishing operation that would increase annual finishing output by 1,650 units. The annual cost of these jigs and tools is $25,000. Should Charlotte acquire these tools? Show your calculations. 2. The production manager of the Machining Department has submitted a proposal to do faster setups that would increase the annual capacity of the Machining Department by 12,000 units and would cost $36,000 per year. Should Charlotte implement the change? Show your calculations 3. An outside contractor offers to do the finishing operation for 15,000 units at $16 per unit, double the $8 per unit that it costs Charlotte to do the finishing in-house Should Charlotte accept the subcontractor's offer? Show your calculations 4. The Halland Corporation offers to machine 5,400 units at $5 per unit, half the $10 per unit that it costs Charlotte to do the machining in-house Should Charlotte accept Halland's offer? Show your calculations 5. Charlotte produces 3,000 defective units at the machining operation. What is the cost to Charlotte of the defective items produced? Explain your answer briefly Charlotte produces 3,000 defective units at the finishing operation. What is the cost to Charlotte of the defective items produced? Explain your answer briefly Print Done Clear All