Answered step by step
Verified Expert Solution
Question
1 Approved Answer
There are answers at the bottom. I just need the work shown Jewelry by Morley is considering the production and sale of three new products.
There are answers at the bottom. I just need the work shown
Jewelry by Morley is considering the production and sale of three new products. The company has 1,800 available labor bours cach month. Per-unit data for the three product provided below and expected monthly demand in units are Selling price Variable expenses Labor hours required 1.2 hrs Monthly demand (units) 500 $3.00 S1.20 $5.00 S3.40 2 hrs. 600 $16.00 $10.00 S hrs. 240 How many units of each product should Morley produce in order to maximize its income? . 500 0 240 500 300 120 0 300 240 D. 1,500 0 0 9. Ellis Television makes and sells portable televisions. Each television regularly sell for $250. The following cost data per television are based on full capacity of 10,000 televisions produced and sold cach period. Direct labor Factory overhead (70% variable) Selling expenses (60%variable) $40 $25 A customer in Scotland has offered Ellis $200 each for 2,000 televisions. The only selling costs that would be ncurrod on this special order would be $6 per television for shipping. Ellis currently is selling 9,000 televisions through regular channels cach period; acceptance of the order thus would require giving up 1,000 units of regular sales. What effect would acceptance of the special order have on Ellis Television's operating income? S7,000 increase A. B. $52,000 increase C. $11,000 decrease D. $15,000 decrease 10. Mcacham Company makes a subcomponent of its major product. Annual production of 20,000 subcomponents results in the following per-unit costs Direct matcrials Direct labor Variable overhead Fixed overhead $10.00 9.00 7.50 S 5.00 Mcacham has received an offer from an outside supplier that is willing to provide 20,000 units of the subcomponent cach year at a price of $28. The facilities being used to make the subcomponent could be rented to another company for S75,000 per year if Meacham were to purchase the subcomponent from the outside supplier If Meacham decides to purchase the subcomponent, what will be the effect on the company's operating income? $45,000 incrcase A. B. $70,000 increase C. $30,000 decrease D. $70,000 decrease Answers: 10. A 4. D 5. A 6. OMIT 7. C 8. A 9. D 2Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started