The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for this product for last year appear below: 4 Sales Variable expenses l'ixed rufacturing expenses l'ixed selling and administrative expenses $941,000 $420,000 $ 355,000 $262,000 01:05:44 All fixed expenses of the company are fully alacated to products in the company's accounting system. Further investigation has revealed that $222,000 of the fixed manufacturing expenses and $132,000 of the fixed selling and administrative EXCrses are av datle if product D74F is discontinued According to the company's accounting system, what is the net operating income (oss carried by product D74P?Include all costs in this calculation whether relevant or not. Multiple Choice $98.000 15521,000 $56000 o $521,000 11 Two products, QI and VH, emerge from a joint process. Product Ql has been allocated $17,300 of the total joint costs of $38,000. A total of 2,400 units of product Ql are produced from the joint process. Product QI can be sold at the split-off point for $15 per unit, or it can be processed further for an additional total cost of $10,400 and then sold for $17 per unit. If product QI is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point? 01:05:37) Multiple Choice ($24,500) $(5,600) $30,400 ($11,700) Mcfarlain Corporation is presently making part Use that is used in one of its products. A total of 11,000 units of this part are produced and used every year. The company's Accounting Department reports the following costs of producing the part at this level of activity: 12 Per Unit 01:05:27 Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead $ 1.20 $3.50 $3.80 An outside supplier has offered to produce and sell the part to the company for $15.90 each, if this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company none of which would be avoided if the part were purchased instead of produced internally In addition to the facts given above, assure that the space used to produce part 98 could be used to make more of one of the company's other products, generating an additional segment margin of $31,400 per year for that product. What would be the financial advantage disadvantage) of buying part 198 from the outside supplier and using the fro space to make more of the other product? Multiple Choke $7,9001 ($500) $31.400 o ($63,300) Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below: 3 Alternative Alternative Materials costs Processing costs Equipment rental Occupancy coste $ 47,000 $43,300 $15,100 $17,200 $64,100 $ 43,300 $15, 100 $25,500 01:05:20 What is the financial advantage disadvantage of Alternative B over Alternative A? Multiple Choice O $12.00 . $125,4001 $48.000 0 $1135.300)
