The Dorilane Company produces a set of wood patio furniture consisting of a table and four chairs. The company has enough customer demand to justify producing its full capacity of 4,000 sets per year. Annual cost data at full capacity follow: Direct labor Advertising Factory supervision Property taxes, factory building Sales commissions Insurance, factory Depreciation, administrative office equipment Lease cost, factory equipment Indirect materials, factory Depreciation, factory building Administrative office supplies (billing) Administrative office salaries Direct materials used (wood, bolts, etc.) Utilities, factory $ 88,000 $ 104,000 $ 74,000 $ 24,000 $ 65,000 $ 7,000 $ 3,000 $ 17,000 $ 20,000 $ 104,000 $ 4,000 $ 114,000 $ 425,000 $ 41,000 ACC1820 Project 1 1 Name OVERVIEW: A list of costs clauldas Variable wed, and Product Period will be summarized general classificati colegi for Diane Ciwpany. We will assume Awwabis catire is fix the full capacity vilone prime significar valer of vir wie wir and by force udai' DARK or air mrstart Tuiermam their rok: tanf rurger, lbatry will alla nakaia eparatis' changes Mor will result in a new car structure. These suwww mowite will be died for operational changes the company lends to make to increase is relevans Farge o allow Doritone to pre ne patio sets units). Cox-Yehme-Profit websis will be wild to explore the inc of several pentiere info le company's curry isinale reviews Wic procediment will be prepared using book wariadecting and wine cording Round all numbers to whole dollars unless otherwise indicated Use the information provided for larilane in Questions of CONNECT FW1.1 assignment Remember: Exchance question is unique to ach student. Therefore, your answers will be different from other students. , you need to Ta se details of the car, will submittempts, then click "SHOW CORRECT ANSWERS" to insure you are using only correct information 1) We will begin by summarizing Duriline's current cu siructure. Use the information for Durilang from 03 of HW 1.1 ming they are opening at city A Complete the table below. In Year 1, Darilane produced and sold at full capacity. Include this "original capacity from comect in both rows for Year 1. For the sales of sets units ors, add the following amounts to the year sale in units: Adl 3,000 for year 2, add 5.000 units for year 3 and 6.000 for your + For the production of units' row, soil amounts to ! he follow they production of units: 14,000 for year 2, 4,000 per year 2 and del 6,000 for year 4 your prejected sales and production levels for years through 4 Year 1 Year 2 Year 3 Year 4 Full capacity (Add 30 (Add 5.60 6,16 de 4.000 prad) Sales of sets units Production of satsanits Project 1: Page 1 of 13 C Maintain consistent les price at $520.00 fumiture set (unit) (?: Recoce the Direct Material cost per unit to 10% of the per unit amount in lb bove. 03 Increase the direct labor per u.t amourr by adding $8 to the amount in labore. 14 Increas: the variables per unitamcent by adding 50% of the direct libur in (3) he 05: Darcise the variable selling and administrative cel punit by lull-multiply the pernil ument from th above by 50% Increase the fixed owerheadly watplying the fixal overhead from Thabove by 2. Increase fixed selling and administrave costs by adding S250,000 to the amount from Ib above che $5200 b) Complete the summary table below.Center amounts for each pale Nue cell). The "tints" indicate the column heading the costs will be included under your connect question. Calculate the per unit amount for variabkls unly by dividing the total dollars by number of sct producent full capricily Remember we decimals for per unit" values-siles price and costs Darilne - Original Cut Structure cummeret given dat Total Dollars Per reset Helpful Hints") (dividely she decimal Sales Variable Cuis Direct Material variable and rece Direct Labor _ Haritale arthroat Variable Overhead variable and recy Variable SA variable and in Total Variables Fixed Overhead fied and indirexe Find S&A fined und Total Fixed Costs Note: The cakulations in 1 and 2 are your CHECK POINT. Email or text a photo or PDF Tori (instructor) and she will Yerily our securacy of your work up to this point before you contine with the project. 3) UN: Duriline's uriginal cul structure from the table above in the pare income statements per year Tonly 2) Assume. Doilane has obtained a long tenn contract to provide furniture sets to a national merchandising chain. This contracts expected to significantly increase Dorilane's sales volumes over the three years as defined in above Darilane is already operating at full capacity and costo make some changes to meet this new demand. Darilane anticipates ales levels to flatten aus aller Year 4. The company believes they can operate at a relevant range of 7,500 to 157000 sets by making the following changes. The company plans to purchase additional production equipment, operate a second shitt, renegotiate some cost contracts, rent warehouse facilities and restructure sales commissions paid to sales personnel. these changes will cause several changes to the cost structure. Use the a) For the old cost structure in th, what is contribucion Margin pert! (Shw2 decimal b} Use the summarized cont structure from the labk in lb and complete the CVP Prot formula buke NOI 0 i) Include the Munit amount in the first space of the formula aleve highlighted yellow) i Add the fixed manufacturing overhead and the fixed selling and administrative expenses Ingeles, include the total fixeleases in the scope of the formula abone iglicht ci Use the CVP prodit formula to calculate the following: i) Txilare company cald sold 2.500 fumiture at what would their Net Orating They ..) Use the information provided above to adjust mounts from the table in 1b). For simplicity, only use the per unit mounts for variable costs and only complete the pale blue cells in the table below. Use the directions below under **) references to guide you. Remember wuse 2 decinals Tur pe unii" value Dorilame - Original Cost Structure connect ziven data Total Dollars Perwiset Helpful Hints Sales S520.00 (1) Varble Costs Direct Material 1211 Direct Labor (7) Tahve +58 Variable Overhead A VOH wees here Variable S&A 13) Vahaser Total Variable Costs sawe Fixed Overhead ( 06 Ones Fixed S&A IT ESSA +250.100 Total Fixed Add 100 in I Dexilite Campainy wodtacaram c51511,000,hewany is working 11.) How many tice the company need to sell to break-even! Project 1: Page 2 of 13 Project 1: Page 3 of 13 The Dorilane Company produces a set of wood patio furniture consisting of a table and four chairs. The company has enough customer demand to justify producing its full capacity of 4,000 sets per year. Annual cost data at full capacity follow: Direct labor Advertising Factory supervision Property taxes, factory building Sales commissions Insurance, factory Depreciation, administrative office equipment Lease cost, factory equipment Indirect materials, factory Depreciation, factory building Administrative office supplies (billing) Administrative office salaries Direct materials used (wood, bolts, etc.) Utilities, factory $ 88,000 $ 104,000 $ 74,000 $ 24,000 $ 65,000 $ 7,000 $ 3,000 $ 17,000 $ 20,000 $ 104,000 $ 4,000 $ 114,000 $ 425,000 $ 41,000 ACC1820 Project 1 1 Name OVERVIEW: A list of costs clauldas Variable wed, and Product Period will be summarized general classificati colegi for Diane Ciwpany. We will assume Awwabis catire is fix the full capacity vilone prime significar valer of vir wie wir and by force udai' DARK or air mrstart Tuiermam their rok: tanf rurger, lbatry will alla nakaia eparatis' changes Mor will result in a new car structure. These suwww mowite will be died for operational changes the company lends to make to increase is relevans Farge o allow Doritone to pre ne patio sets units). Cox-Yehme-Profit websis will be wild to explore the inc of several pentiere info le company's curry isinale reviews Wic procediment will be prepared using book wariadecting and wine cording Round all numbers to whole dollars unless otherwise indicated Use the information provided for larilane in Questions of CONNECT FW1.1 assignment Remember: Exchance question is unique to ach student. Therefore, your answers will be different from other students. , you need to Ta se details of the car, will submittempts, then click "SHOW CORRECT ANSWERS" to insure you are using only correct information 1) We will begin by summarizing Duriline's current cu siructure. Use the information for Durilang from 03 of HW 1.1 ming they are opening at city A Complete the table below. In Year 1, Darilane produced and sold at full capacity. Include this "original capacity from comect in both rows for Year 1. For the sales of sets units ors, add the following amounts to the year sale in units: Adl 3,000 for year 2, add 5.000 units for year 3 and 6.000 for your + For the production of units' row, soil amounts to ! he follow they production of units: 14,000 for year 2, 4,000 per year 2 and del 6,000 for year 4 your prejected sales and production levels for years through 4 Year 1 Year 2 Year 3 Year 4 Full capacity (Add 30 (Add 5.60 6,16 de 4.000 prad) Sales of sets units Production of satsanits Project 1: Page 1 of 13 C Maintain consistent les price at $520.00 fumiture set (unit) (?: Recoce the Direct Material cost per unit to 10% of the per unit amount in lb bove. 03 Increase the direct labor per u.t amourr by adding $8 to the amount in labore. 14 Increas: the variables per unitamcent by adding 50% of the direct libur in (3) he 05: Darcise the variable selling and administrative cel punit by lull-multiply the pernil ument from th above by 50% Increase the fixed owerheadly watplying the fixal overhead from Thabove by 2. Increase fixed selling and administrave costs by adding S250,000 to the amount from Ib above che $5200 b) Complete the summary table below.Center amounts for each pale Nue cell). The "tints" indicate the column heading the costs will be included under your connect question. Calculate the per unit amount for variabkls unly by dividing the total dollars by number of sct producent full capricily Remember we decimals for per unit" values-siles price and costs Darilne - Original Cut Structure cummeret given dat Total Dollars Per reset Helpful Hints") (dividely she decimal Sales Variable Cuis Direct Material variable and rece Direct Labor _ Haritale arthroat Variable Overhead variable and recy Variable SA variable and in Total Variables Fixed Overhead fied and indirexe Find S&A fined und Total Fixed Costs Note: The cakulations in 1 and 2 are your CHECK POINT. Email or text a photo or PDF Tori (instructor) and she will Yerily our securacy of your work up to this point before you contine with the project. 3) UN: Duriline's uriginal cul structure from the table above in the pare income statements per year Tonly 2) Assume. Doilane has obtained a long tenn contract to provide furniture sets to a national merchandising chain. This contracts expected to significantly increase Dorilane's sales volumes over the three years as defined in above Darilane is already operating at full capacity and costo make some changes to meet this new demand. Darilane anticipates ales levels to flatten aus aller Year 4. The company believes they can operate at a relevant range of 7,500 to 157000 sets by making the following changes. The company plans to purchase additional production equipment, operate a second shitt, renegotiate some cost contracts, rent warehouse facilities and restructure sales commissions paid to sales personnel. these changes will cause several changes to the cost structure. Use the a) For the old cost structure in th, what is contribucion Margin pert! (Shw2 decimal b} Use the summarized cont structure from the labk in lb and complete the CVP Prot formula buke NOI 0 i) Include the Munit amount in the first space of the formula aleve highlighted yellow) i Add the fixed manufacturing overhead and the fixed selling and administrative expenses Ingeles, include the total fixeleases in the scope of the formula abone iglicht ci Use the CVP prodit formula to calculate the following: i) Txilare company cald sold 2.500 fumiture at what would their Net Orating They ..) Use the information provided above to adjust mounts from the table in 1b). For simplicity, only use the per unit mounts for variable costs and only complete the pale blue cells in the table below. Use the directions below under **) references to guide you. Remember wuse 2 decinals Tur pe unii" value Dorilame - Original Cost Structure connect ziven data Total Dollars Perwiset Helpful Hints Sales S520.00 (1) Varble Costs Direct Material 1211 Direct Labor (7) Tahve +58 Variable Overhead A VOH wees here Variable S&A 13) Vahaser Total Variable Costs sawe Fixed Overhead ( 06 Ones Fixed S&A IT ESSA +250.100 Total Fixed Add 100 in I Dexilite Campainy wodtacaram c51511,000,hewany is working 11.) How many tice the company need to sell to break-even! Project 1: Page 2 of 13 Project 1: Page 3 of 13
