This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Following a strategy of product differentiation, Izzy's Limited Company makes a high-end Appliance, ... (Read 72 times)

ericka1

  • Hero Member
  • *****
  • Posts: 544
on: Mar 6, 2021
Following a strategy of product differentiation, Izzy's Limited Company makes a high-end Appliance, XT15. Izzy's Limited presents the following data for the years 2017 and 2018:

20172018
Units of XT15 produced and sold58,00060,200
Selling price$500$570
Direct materials (square feet)158,000161,750
Direct materials costs per square foot$51$57
Manufacturing capacity in units of XT1562,90062,900
Total conversion costs$6,290,000$6,856,100
Conversion costs per unit of capacity$100$109
Selling and customer-service capacity (customers)150150
Total selling and customer-service costs$2,295,000$2,396,250
Selling and customer-service capacity cost per customer$15,300$15,975

Izzy's Limited produces no defective units but it wants to reduce direct materials usage per unit of XT15. Manufacturing conversion costs in each year depend on production capacity defined in terms of XT15 units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Izzy's Limited had 140 customers in 2017 and 145 customers in 2018.

What is operating income in 2018?
◦ $7,463,500
◦ $15,841,900
◦ $9,212,000
◦ $15,921,775
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by ericka1 on Mar 6, 2021

kkenney

  • Sr. Member
  • ****
  • Posts: 352
Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 49% of students answer this correctly


ericka1

  • Member
  • Posts: 544
Reply 2 on: Mar 6, 2021
Wow, this really help

31809pancho

  • Member
  • Posts: 317
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

Alcohol acts as a diuretic. Eight ounces of water is needed to metabolize just 1 ounce of alcohol.

Did you know?

The average adult has about 21 square feet of skin.

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

(a) With few ticks, moose retain a brown coat; (b) at high numbers of ticks, moose self-groom, destr (a) With few ticks, moose retain a brown coat; (b) at high numbers of ticks, moose self-groom, destr
Membership in this subculture is not easily awarded. Not only must high-steel ironworkers prove that ... Membership in this subculture is not easily awarded. Not only must high-steel ironworkers prove that ...
Economic Differentiation in China Economic Differentiation in China
A Production Function with Diminishing Marginal Product of Capital A Production Function with Diminishing Marginal Product of Capital
Effect of dietary fats on high- and low-density cholesterol levels Effect of dietary fats on high- and low-density cholesterol levels
Family interactive style predicts academic achievement in high school Family interactive style predicts academic achievement in high school
Video: Amniocentesis and CVS Animation

For a complete list of videos, visit our video library