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 95 times)

mcmcdaniel

  • Hero Member
  • *****
  • Posts: 550
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 sold52,00054,000
Selling price$600$670
Direct materials (square feet)153,000156,750
Direct materials costs per square foot$53$61
Manufacturing capacity in units of XT1564,00064,000
Total conversion costs$6,400,000$6,784,000
Conversion costs per unit of capacity$100$106
Selling and customer-service capacity (customers)190190
Total selling and customer-service costs$2,926,000$3,054,250
Selling and customer-service capacity cost per customer$15,400$16,075

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 175 customers in 2017 and 180 customers in 2018.

What is the revenue effect of the growth component?
◦ $3,780,000 F
◦ $1,200,000  U
◦ $3,780,000  U
◦ $1,200,000  F
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 mcmcdaniel on Mar 6, 2021

cassie_ragen

  • Sr. Member
  • ****
  • Posts: 347
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


mcmcdaniel

  • Member
  • Posts: 550
Reply 2 on: Mar 6, 2021
Wow, this really help

AngeliqueG

  • Member
  • Posts: 343
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

Did you know?

Cancer has been around as long as humankind, but only in the second half of the twentieth century did the number of cancer cases explode.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

From high cotransduction frequencies, close linkage is inferred From high cotransduction frequencies, close linkage is inferred
Primatologist Volker Sommer and his colleagues showed that langur infanticide had adaptive value and Primatologist Volker Sommer and his colleagues showed that langur infanticide had adaptive value and
Deconvolution fluorescence microscopy yields high-resolution optical sections th Deconvolution fluorescence microscopy yields high-resolution optical sections th
A typical module-controlled high-side driver (HSD) where the module itself supplies the electrical ... A typical module-controlled high-side driver (HSD) where the module itself supplies the electrical ...
A gasoline direct-injection system injects fuel under high pressure directly into the combustion ... A gasoline direct-injection system injects fuel under high pressure directly into the combustion ...
Alpine tundra. Low-growing, hardy plants at a high altitude in Washington’s Cascade range. Alpine tundra. Low-growing, hardy plants at a high altitude in Washington’s Cascade range.
Video: Definition of heart rate

For a complete list of videos, visit our video library