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 87 times)

fahad

  • Hero Member
  • *****
  • Posts: 570
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 sold56,00058,000
Selling price$1000$1050
Direct materials (square feet)154,000157,500
Direct materials costs per square foot$51$57
Manufacturing capacity in units of XT1563,70063,700
Total conversion costs$6,943,300$7,325,500
Conversion costs per unit of capacity$109$115
Selling and customer-service capacity (customers)170170
Total selling and customer-service costs$2,550,000$2,660,500
Selling and customer-service capacity cost per customer$15,000$15,650

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 160 customers in 2017 and 165 customers in 2018.

What is the cost effect of the growth component? (Round any intermediary calculations to two decimals and your final answer to the nearest dollar.)
◦ $280,500 U
◦ $1,449,700 U
◦ $1,449,700 F
◦ $280,500  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 fahad on Mar 6, 2021

LP

  • Sr. Member
  • ****
  • Posts: 302
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


fahad

  • Member
  • Posts: 570
Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it

skipfourms123

  • Member
  • Posts: 343
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

The average adult has about 21 square feet of skin.

These adolescents have just graduated and look forward to moving on from high school and adolesence These adolescents have just graduated and look forward to moving on from high school and adolesence
High rates of rural poverty have been a part of the United States from its origin to the present. ... High rates of rural poverty have been a part of the United States from its origin to the present. ...
How to use implicit differentiation with higher order derivatives How to use implicit differentiation with higher order derivatives
Step stool can help clients get onto and off of a high table. Step stool can help clients get onto and off of a high table.
Almonds contain high levels of healthy unsaturated fatty acids Almonds contain high levels of healthy unsaturated fatty acids
Paired-end shotgun sequencing strategy Paired-end shotgun sequencing strategy
Video: Phases of the Female Reproductive Cycle - Hormonal regulation

For a complete list of videos, visit our video library