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the images are pretty clear.... Unter Components manufactures low-cost navigation systems for installation in tide-sharing cars. It sells these systems to various car services that
the images are pretty clear....
Unter Components manufactures low-cost navigation systems for installation in tide-sharing cars. It sells these systems to various car services that can customize them for their locale and business model. It manufactures two systems, the Star 100 and the Star150, which differ in terms of capabilities. The following information is available: Costs per Unit Direct materials Direct labor Variable overhead Star10 55 24 10 30 $ 169 $ 280 Fixed overhead Total cost per unit Price Units sold Star150 $ 65 30 15 110 $ 220 5 10 2,000 The average wage rate is $15 per hour. Variable overhead vales with the quantity of direct labor hours. The plant has a capacity of 20.000 direct lobor hours, but current production uses only 10,400 direct labor hours. Required: 0. A nationwide car-sharing service has offered to buy 2.400 star100 systems and 2.400 Surts systems if the price is lowered to $190 and $240, respectively. per unit. 6-1. Unter accepts the offer, how many direct labor hours will be required to produce the additional systems? 6-2. Complete the following table to determine the differential profit increase for decreases if Unter accepts this proposal Prices on regular sales will remain the same 6.1. Suppose that the car sharing has offered instead to buy 3.400 each of the two models at $190 and $240. respectively. This customer will purchase the 3.400 units of each model only in an all or nothing deal. That is. Unter must provide all 3.400 units of each model or none Unter's management has decided to fill the entire special order for both models. In view of its capacity constraints. Unter will reduce sales to regular customers as needed to fill the special ordet Complete the table below to determine the total contribution margin with the special order added 1-2 How much will the protits change it the order is accepted? Assume that the company cannot increase its production capacity to meet the extra demand The average wage rate is $15 per hour. Verlable overhead varies with the quantity of direct labor-hours. The plant has a capacity of 20,000 direct labor-hours, but current production uses only 10,400 direct labor-hours Required: 6. A nationwide car sharing service has offered to buy 2.400 Star 100 systems and 2.400 Star150 systems if the price is lowered to $190 and $240, respectively, per unit. 6-1. Unter accepts the offer, how many direct labor hours will be required to produce the additional systems? a-2. Complete the following table to determine the differential profit Increase for decrease) ir Unter accepts this proposal Prices on regular sales will remain the same b-1. Suppose that the car sharing has offered instead to buy 23,400 each of the two models at $190 and $240, respectively. This customer will purchase the 3.400 units of each model only in an all or nothing deal. That is. Unter must provide all 3.400 units of each model or none. Unter's management has decided to fill the entire special order for both models in view of its capacity constraints. Unter will reduce sales to regular customers as needed to fill the special order. Complete the table below to determine the total contribution margin with the special order added. b-2. How much will the profits change of the order is accepted? Assume that the company cannot increase its production capacity to e-1. Assume that in the situation presented in requirement b1, the plant can work overtime. Direct labor costs for the overtime production increased to $22.50 per hour Vortable overhead costs for overtime production are $4 per hour more than for normal production Complete the table below to determine the total contribution margin c-2. How much will the profits change in this situation? Answer is not complete. Complete this question by entering your answers in the tabs below. Req At Reg A2 Req B: Reg 32 Reg C1 Reg 2 A nationwide car sharing service has offered to buy 2,400 Stat 100 systems and 2,400 star150 systems at the price is lowered to $100 and $240, respectively, per unit, A1. If Unter accepts the offer, how many direct labor hours will be required to produce the additional systems Decting hours 8,640 Req A2 > Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Req B1 Req B2 Reg C1 Reg C2 A nationwide car sharing service has offered to buy 2,400 Star 100 systems and 2,400 Star150 systems if the price is lowered to $190 and $240, respectively, per unit. A2. Complete the following table to determine the differential profit increase or decrease) if Unter accepts this proposal. Prices on regular sales will remain the same. Show less $ 456,000 570 000 $ 1,032,000 Differential revenues Star 100 Star 150 Ditterenal costs Star 100 SUA 150 Diferential prota 213.000 204,000 477 000 554,400 5 Reg A1 Reg A2 Req B1 Req B2 Reg C1 Reg C2 Suppose that the car sharing service has offered instead to buy 3,400 each of the two models at $190 and $240, respectively. This customer will purchase the 3,400 units of each model only in an all-or-nothing deal. That is, Unter must provide all 3,400 units of each model or none. Unter's management has decided to fill the entire special order for both models. In view of its capacity constraints, Unter will reduce sales to regular customers as needed to fill the special order. Complete the table below to determine the total contribution margin with the special order added. Show less Star 100 Star150 Total S 101 $ 3.400 343.400 130 3.400 442,000 S $ $ 785,400 Special Order Contribution margin per unit Number of units Total contribution margin Regular production Contribution margin per un Number of units Total contribution margin Total contribution margin for bots $ 1918 2,350 448,050 S 270 2.000 540,000 S 038 050 1.774,250 $ b-2. How much will the profits change if the order is accepted? Assume that the company cannot Increase its production capacity meet the extra demand. 0-1. Assume that, in the situation presented in reduirement b-1, the plant can work overtime. Direct labor costs for the overtime production increased to $22.50 per hour. Variable overhead costs for overtime production are $4 per hour more than for normal production. Complete the table below to determine the total contribution margin. c-2. How much will the profits change in this situation? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg B1 Req 12 Reg C1 Reg C2 How much will the profits change if the order is accepted? Assume that the company cannot increase its production capacity to meet the extra demand increase in profit $ 470.250 Reg A1 Reg A2 Reg B1 Req B2 Reg C1 Reg C2 Assume that, in the situation presented in requirement b-1, the plant can work overtime. Direct labor costs for the overtime production increased to $22.50 per hour. Variable overhead costs for overtime production are $4 per hour more than for normal production. Complete the table below to determine the total contribution margin. Star 100 Star150 Total IS 101 s 3,400 343.400 130 3.400 442.000 $ $ 785,400 Special Order Contribution margin per unit Number of units Total contribution margin Regular production Contribution margin per unit Number of units Total contribution margin Total contribution margin for bom Additional de labor costs Additional variable overhead Total contribution margin for both with additional costs 191 $ 3,400 649.400 270 2.000 540.000 $ 5 $ $ 1,189 400 1,974.800 23 4 1,974.773 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg 01 Reg 2 Reg CI Reg 2 How much will the profits change in this situation? Increase in profit 111 X Step by Step Solution
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