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Use below information for Questions 1 to 2: Company X produces industrial robots for high-precision manufacturing. The following information is available for Company X: Total

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Use below information for Questions 1 to 2: Company X produces industrial robots for high-precision manufacturing. The following information is available for Company X: Total Item Direct materials Direct labor Variable MOH Fixed MOH Variable Selling and Admin expenses Fixed Selling and Admin expenses Per unit 383 290 72 1,550,000 55 324,000 The company has a desired return on investment (ROI) ratio of 21%. It has invested TL54m for this business and anticipates production of 3,000 units per annum. Q-1) Compute the target selling price. Q-2) Compute realized ROI if actual sales units turn out to be 2,300 per annum. Q-3) Company X rebuilds spot welders for manufacturers. The following budgeted cost data for 2017 is available: Item Time Charges Material Loading Charges Technicians' wages and benefits 223,000 Parts manager's salary and benefits 42,500 Office employee's salary and benefits 38,000 9,000 Other overhead 25,000 15,200 The company desires a TL30 profit margin per hour of labor and a 21% profit margin on parts. It has budgeted for 7,610 hours of labor time next year and estimated that the total invoice cost of parts and materials in 2017 would be TL400,000. Company X received a price quote for a rebuilding job in which 41 hours of labor and TL2,500 of parts is estimated to be used. Compute total estimated bill. Use below information for Questions 4 to 5: Company X is a division of Company ABC. X produces pagers and other personal communication devices. These devices are sold to other ABC divisions, as well as to other communication companies. Company X was recently approached by the manager of an ABC division, Company Y, regarding a request to make a special pager designed to receive signals from anywhere in the world. Company Y requested that Company X produce 12,300 units of this special pager. The following facts are available regarding the Company X: Item Amount Unit Selling price of standard pager per unit TL Variable cost of standard pager per unit TL Additional variable cost of special pager per unit TL 95 55 31 For each independent case below, enter 5 if the Company X should sell the pager to Company Y, enter 10 if the Company X should sell the pager externally, and enter 15 if the Company X should be indifferent to sell the pager externally versus internally. Q-4) Company Y offers to pay TL115 and Company X will forgo 5,100 units of standard pagers. Q-5) Company Y offers to pay TL115 and Company X will forgo 13,100 units of standard pagers. Use below information for Questions 1 to 2: Company X produces industrial robots for high-precision manufacturing. The following information is available for Company X: Total Item Direct materials Direct labor Variable MOH Fixed MOH Variable Selling and Admin expenses Fixed Selling and Admin expenses Per unit 383 290 72 1,550,000 55 324,000 The company has a desired return on investment (ROI) ratio of 21%. It has invested TL54m for this business and anticipates production of 3,000 units per annum. Q-1) Compute the target selling price. Q-2) Compute realized ROI if actual sales units turn out to be 2,300 per annum. Q-3) Company X rebuilds spot welders for manufacturers. The following budgeted cost data for 2017 is available: Item Time Charges Material Loading Charges Technicians' wages and benefits 223,000 Parts manager's salary and benefits 42,500 Office employee's salary and benefits 38,000 9,000 Other overhead 25,000 15,200 The company desires a TL30 profit margin per hour of labor and a 21% profit margin on parts. It has budgeted for 7,610 hours of labor time next year and estimated that the total invoice cost of parts and materials in 2017 would be TL400,000. Company X received a price quote for a rebuilding job in which 41 hours of labor and TL2,500 of parts is estimated to be used. Compute total estimated bill. Use below information for Questions 4 to 5: Company X is a division of Company ABC. X produces pagers and other personal communication devices. These devices are sold to other ABC divisions, as well as to other communication companies. Company X was recently approached by the manager of an ABC division, Company Y, regarding a request to make a special pager designed to receive signals from anywhere in the world. Company Y requested that Company X produce 12,300 units of this special pager. The following facts are available regarding the Company X: Item Amount Unit Selling price of standard pager per unit TL Variable cost of standard pager per unit TL Additional variable cost of special pager per unit TL 95 55 31 For each independent case below, enter 5 if the Company X should sell the pager to Company Y, enter 10 if the Company X should sell the pager externally, and enter 15 if the Company X should be indifferent to sell the pager externally versus internally. Q-4) Company Y offers to pay TL115 and Company X will forgo 5,100 units of standard pagers. Q-5) Company Y offers to pay TL115 and Company X will forgo 13,100 units of standard pagers

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