Question
This is a two part question. Please take the time to read it. I've posted this at least three times and each answer was completely
This is a two part question. Please take the time to read it. I've posted this at least three times and each answer was completely incorrect and incomplete. Show all work.
Ultratech, Inc., manufactures several different types of printed circuit boards; however, two of the boards account for the majority of the companys sales. The first of these boards, a television circuit board, has been a standard in the industry for several years. The market for this type of board is competitive and price-sensitive. Ultratech plans to sell 69,000 of the TV boards in 20x4 at a price of $430 per unit. The second high-volume product, a personal computer circuit board, is a recent addition to Ultratechs product line. Because the PC board incorporates the latest technology, it can be sold at a premium price. The 20x4 plans include the sale of 44,000 PC boards at $750 per unit. |
Ultratechs management group is meeting to discuss how to spend the sales and promotion dollars for 20x4. The sales manager believes that the market share for the TV board could be expanded by concentrating Ultratechs promotional efforts in this area. In response to this suggestion, the production manager said, Why dont you go after a bigger market for the PC board? The cost sheets that I get show that the contribution from the PC board is more than double the contribution from the TV board. I know we get a premium price for the PC board. Selling it should help overall profitability. |
The cost-accounting system shows that the following costs apply to the PC and TV boards.
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