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Fat Tire Bikes For Year Ending 12/31/2022 Relevant Corporate Information \begin{tabular}{|r|l|l|} \hline 12% & Amount corporate investors require as a return of investment \\ \hline 1,300,000.00 & Total Current Assets & \\ \hline 1,900,000.00 & Total Fixed Costs & \\ \hline 750 & Total Sales in units & \\ \hline 500.75 & Variable Cost Per Unit & \\ \hline \end{tabular} Instructions: Please fill in all grey areas. You can use a formula or hard code the amounts. In addition, please answer any questions that are asked below. Good Luck!! Determine the Price Per Unit \begin{tabular}{r|r|} \cline { 2 } Price Per Unit Analysis & \\ Current Variable Costs & 375,562.50 \\ Fixed Costs & 1,900,000.00 \\ Full Product Cost & 2,275,562.50 \\ Desired Profit & 156,000.00 \\ Target Revenue & 2,431,562.50 \\ Number of Units & 750.00 \\ Price Per Unit & 3,242.08 \\ \cline { 2 } & \end{tabular} Create an Income Statement from the Data Abave Income Statement \begin{tabular}{r|r|} \cline { 2 } Sales Revenue & 2,431,562.50 \\ Variable Costs & 375,562.50 \\ \hline Contribution Margin & 2,056,000,00 \\ \hline Fixed Costs & 1,900,000.00 \\ \hline Operating Income(Loss) & 156,000,00 \\ \hline \end{tabular} Determine Which Department Should be Eliminated (if anyl? Departmental Data What is the increase/Decrease in Operatinq income if fixed cost is avoidable and unawoidable? \begin{tabular}{r|r|r|r|r|} \hline If Other is Dropped and fixed cost is avoidable & If Other is Dropped and fixed cost is unavoidable \\ \hline Increase/Decrease in Revenue & (246,562.00) & Increase/Decrease in Revenue & (246,562.00) \\ (35,562.00) & (35,562.00) & Increase/Decrease in Variable Costs \\ \hline Increase/Decrease in Variable Costs & Increase/Decrease in Fixed Costs \\ Increase/Decrease in Fixed Costs & (400,000.00) & Increase/Decrease in Total Costs \\ \hline Increase/Decrease in Total Costs & (435,562.00) & Increase/Decrease in Operating Income & (282,124.00) \\ \hline \end{tabular} What is the Contribution Marqin Per Machine Hour? If you choose to maximize profit with only 1 bike model which do you choose, why? I would choosse the ROAD BIKE to maximize the profit as ROAD BIKE and have the highest contribution per machine hours. Should You Make or Outsource the Road Bikes? Road Bike Data \begin{tabular}{r|r|} \cline { 2 } Total Variable Cost Per Unit & \\ Total Fixed Cost Per Unit & 2,666.67 \\ Total Cost Per Unit & 2,666,67 \\ \hline \end{tabular} Road Bike Cost (if outsourced) 595.00 Road Bike Cost [ifoutsourced) 595.00 \begin{tabular}{r|r|rr|} \multicolumn{1}{r|}{ Don't Dutsource } & Outsource & Variance \\ \hline Direct Materials & & 0 \\ Direct Labor & & 0 \\ Variable Manufacturing Overhead & 0 & 0 \\ Total Variable Cost & Outsource Cost & 0 & 0 \\ Fixed Manufacturing Overhead & 0 & 0 & 0 \\ \hline Cost Per Bike & 0 & 0 & 0 \\ \hline \end{tabular} Did you decide to make or outsource? You have been qiven the opportunity to make 1 special bike for a client. Should you take the deal? You have sufficient excess labor capacity \begin{tabular}{r|r|} Expected increase in Revenue \\ Expected increase in materials \\ Expected increase in labor \\ Expected increase in variable overhead \\ Expected increase in fixed overhead \\ Expected increase in variable manufacturing cost \\ Expected increase/decrease in operating income & 0 \\ \hline \end{tabular} Yes, I would take the deal 1 No, I will not take the deal 2 WhyStep by Step Solution
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