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this is due later this week, but i need help with the following that is attached. Regal Flair Enterprises has two product lines: jewelry and
this is due later this week, but i need help with the following that is attached.
Regal Flair Enterprises has two product lines: jewelry and women's apparel. Cost and revenue data for each product line for the current month are as follows: Product Lines Sales Jewelry $ 800,000 Variable costs as a percentage of sales Fixed costs traceable to product lines Apparel $ 450,000 55 % $ 200,000 28 % $ 250,000 In addition to the costs shown above, the company incurs monthly fixed costs of $100,000 common to both product lines. Instructions a. Prepare Regal Flair Enterprises's responsibility income statement for the current month. Report the responsibility margin for each product line and income from op b-1. Assume that a marketing survey shows that a $75,000 monthly advertising campaign focused on either product line should increase that product line's monthly sa b-2. Do you recommend this additional advertising for either or both product lines? A. Jewelry B. Apparel C. Both c-1. Management is considering expanding one of the company's two product lines. An investment of a given dollar amount is expected to increase the sales of the exp Jewlery Apperal Expected increase in Contribution Margin : Expected increase (decrease) in operating income c-2. Based on the above information, which product line do you recommend expanding? a. Jewelry b. Apparel c. Both 2 Tots-To-Go, Inc., has two divisions: the Seat Division and the Stroller Division. The Seat Division supplies the seat frames used by the Stroller Division to make its strollers. The Stro The Seat Division is currently operating at full capacity, producing 20,000 seat frames per year (10,000 of which are transferred to the Stroller Division). The demand for seat fra The manager of the Stroller Division asserts that the Seat Division benefits from the intercompany transfer because of reduced shipping costs. As a result, he wants to negotiate Instructions a. Compute the contribution margin earned annually by each division and by the company as a whole using the current transfer price. Contribution Margin Entire Company Seat Divison Stroller Division b. Compute the contribution margin that would be earned annually by each division and by the company as a whole if the discounted transfer price were used. Contribution Margin Entire Company Seat Divison Stroller Division e from operations for the company as a whole.(Round your percentage answers to 1 decimal place (i.e. 0.123 should be considered as 12.3%).) onthly sales by approximately $150,000. What is the expected effect of the proposed advertising campaign upon income from operations for both product lines? of the expanded product line by $300,000. It is also expected to increase the traceable fixed costs of the expanded product line by 75 percent. What is the expected effect of the pro The Stroller Division produces approximately 10,000 strollers for young children annually. Thus, the Stroller Division receives 10,000 seat frames annually from the Seat Division. Th r seat frames is so great that all 20,000 units could be sold to outside customers if the Stroller Division acquired seat frames from elsewhere. The Seat Division uses the full market negotiate a lower transfer price of $110 per unit. ed. proposed investment in each product line upon income from operations for both product lines? The market price of these seats frames is $120. The total variable cost of the seat frames is $95 per unit. The market price of the strollers is $300. The unit variable cost of each str et price of $120 as the transfer price charged to the Stroller Division. stroller excluding the cost of the seat frame is $75Step by Step Solution
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