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 91 times)

vicotolentino

  • Hero Member
  • *****
  • Posts: 552
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 sold55,00058,500
Selling price$400$440
Direct materials (square feet)150,000153,300
Direct materials costs per square foot$51$55
Manufacturing capacity in units of XT1562,70062,700
Total conversion costs$6,270,000$6,708,900
Conversion costs per unit of capacity$100$107
Selling and customer-service capacity (customers)150150
Total selling and customer-service costs$2,325,000$2,426,250
Selling and customer-service capacity cost per customer$15,500$16,175

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 135 customers in 2017 and 140 customers in 2018.

What is the change in operating income from 2017 to 2018?
◦ $2,418,350 U
◦ $3,740,000 F
◦ $2,418,350  F
◦ $3,740,000 U
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 vicotolentino on Mar 6, 2021

SamMuagrove

  • Sr. Member
  • ****
  • Posts: 312
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


vicotolentino

  • Member
  • Posts: 552
Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)

meganmoser117

  • Member
  • Posts: 303
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

Did you know?

A good example of polar molecules can be understood when trying to make a cake. If water and oil are required, they will not mix together. If you put them into a measuring cup, the oil will rise to the top while the water remains on the bottom.

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

During confrontations with others, the mane makes the lion look larger. During confrontations with others, the mane makes the lion look larger.
Orangutans are limited to the islands of Sumatra and Borneo, where their numbers are rapidly declini Orangutans are limited to the islands of Sumatra and Borneo, where their numbers are rapidly declini
Defective differentiation and leukemia Defective differentiation and leukemia
Exchange of gases between lungs and blood. High concentration of CO2 in blood capillary entering the ... Exchange of gases between lungs and blood. High concentration of CO2 in blood capillary entering the ...
Per capita consumption of power is high in the developed world and highest in the United States Per capita consumption of power is high in the developed world and highest in the United States
As the world’s population continues to grow, demands on limited resources for food production As the world’s population continues to grow, demands on limited resources for food production
Video: Normal and abnormal blood pH

For a complete list of videos, visit our video library