Business, 18.03.2021 01:10 kdtd3163

Chino Company manufactures fabric and clothing. Managers can either sell the unfinished fabric to other clothing manufacturers or incur additional conversion costs to create a finished garment. The costs incurred to produce the unfinished fabric are $400,000, which are allocated to the products based on the sales value of the unfinished fabric. Following is information concerning the clothing that can be produced from the fabric: Product # of units Selling price of Unfinished Fabric Selling price after processing further Addtional Processing cost
Pants 6,000 $20.00 $30.00 $28,450
Shirts 12,000 $23.20 $32.40 $64,400
Coats 4,000 $38.80 $43.20 $18,300

Required:
a. Calculate the increase or decrease in profit if the products are processed further.
b. Assume that the $400,000 in costs is allocated based on the number of units of output. Which products should be sold as unfinished fabric and which should be further processed?

Answers: 1

Show answers

Answers

Answer from: noneofurbznessp2yc11

a. we have:

Increase in profit of Pants if processed further = $31,550

Increase in profit of Shirts if processed further = $46,000

Decrease in profit of Coats if processed further = -$700

b. We have:

1. Both Pants and Shirts should be processed further.

2. Coats should should be sold as unfinished fabric.

Explanation:

a. Calculate the increase or decrease in profit if the products are processed further.

Note: See the part (a) of the attached excel file for calculation of the increase or decrease in profit if the products are processed further.

In the attached excel file, we have:

Increase in profit of Pants if processed further = $31,550

Increase in profit of Shirts if processed further = $46,000

Decrease in profit of Coats if processed further = -$700

b. Assume that the $400,000 in costs is allocated based on the number of units of output. Which products should be sold as unfinished fabric and which should be further processed?

Note: See the part (b) of the attached excel file for calculation of the increase or decrease in profit if the products are processed further.

In the attached excel file, we have:

Increase in profit of Pants if processed further = $31,550

Increase in profit of Shirts if processed further = $46,000

Decrease in profit of Coats if processed further = -$700

Since both there are increases in the profits of both Pants and Shirts if they are processed further, this implies that both Pants and Shirts should be processed further.

Since there is a decrease in the profits of Coats if it is processed further, this implies that Coats should should be sold as unfinished fabric.

Answer from: Quest

answerpurchase-occasion segmentation;

Answer from: Quest

Gamma rays and beta particles are all used to treat internal organs. x-rays are produced by firing electrons at a metal target and gamma rays are emitted by the nucleus of radioactive atoms. gamma rays are used to kill cancer cells, and to medical equipment and in radioactive tracers.

Another question on Business

Business, 22.06.2019 00:30

Needs to schedule the staffing of the center. it is open from 8am until midnight. larry has monitored the usage of the center at various times of the day and determined that the following number of computer consultants are required: time of dayminimum number of consultants required to be on duty8 am-noon4noon-4 pm84pm-8pm108pm-midnight6 two types of computer consultants can be hired: full-time and part-time. the full- time consultants work for eight consecutive hours in any of the shifts: morning (8am- 4pm), afternoon (noon-8pm) and evening (4pm-midnight). full-time consultants are paid $14 per hour. part-time consultants can be hired to work any of the four shifts listed in the table. part-time consultants are paid $12 per hour. an additional requirement is that during every time period, there must be at least two full-time consultants on duty for every part-time consultant on duty. larry would like to determine how many full-time and part-time consultants should work each shift to meet the above requirements at the minimum possible cost. formulate this as an lp problem. you must define your variables clearly

Answers: 2

Answer

Business, 22.06.2019 00:50

cranium, inc., purchases term papers from an overseas supplier under a continuous review system. the average demand for a popular mode is 300 units a day with a standard deviation of 30 units a day. it costs $60 to process each order and there is a five−day lead−time. the holding cost for a paper is $0.25 per year and the company policy is to maintain a 98% service level. cranium operates 200 days per year.what is the reorder point r to satisfy a 98% cycleminus−service level? a. greater than 1,700 unitsb. greater than 1,600 units but less than or equal to 1,700 unitsc. greater than 1,500 units but less than or equal to 1,600 unitsd. less than or equal to 1,500 units

Answers: 1

Answer

Business, 22.06.2019 13:10

Laval produces lamps and home lighting fixtures. its most popular product is a brushed aluminum desk lamp. this lamp is made from components shaped in the fabricating department and assembled in the assembly department. information related to the 22,000 desk lamps produced annually follows.direct materials $280,000direct labor fabricating department (8,000 dlh × $24 per dlh) $192,000assembly department (16,600 dlh × $26 per dlh) $431,600machine hours fabricating department $15,200mhassembly department $20,850mhexpected overhead cost and related data for the two production departments follow.fabricating assemblydirect labor hours 150,000dlh 295,000dlhmachine hours 161,000mh 128,000mhoverhead cost $400,000 430,000required1. determine the plantwide overhead rate for laval using direct labor hours as a base.2. determine the total manufacturing cost per unit for the aluminum desk lamp using the plantwide overhead rate.3. compute departmental overhead rates based on machine hours in the fabricating department and direct labor hours in the assembly department.4. use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps.

Answers: 3

Answer

Business, 22.06.2019 16:40

Match the situations that will develop one's personality and those that won't peter is surrounded by friends who are always encouraging him jonathan always watches television when he wants to take a break from his books libby sets small targets for herself and strives to achieve them. the smiths indulge in an animated discussion on varied topics every evening after dinner. brook loves junk food and exercises once in a while. develops your personality develops doesn't develop your personality

Answers: 2

Answer

You know the right answer?

Chino Company manufactures fabric and clothing. Managers can either sell the unfinished fabric to ot...

Questions