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 73 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
Great answer, keep it coming :)

upturnedfurball

  • Member
  • Posts: 334
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

Earwax has antimicrobial properties that reduce the viability of bacteria and fungus in the human ear.

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Some playgrounds near streets with heavy traffic may still have high levels of lead from gasoline ... Some playgrounds near streets with heavy traffic may still have high levels of lead from gasoline ...
Overview of a computer-controlled high-pressure common rail V-8 diesel engine. Overview of a computer-controlled high-pressure common rail V-8 diesel engine.
How to use the product rule to find the derivative of a function How to use the product rule to find the derivative of a function
A company that sells sweatshirts finds that the profit can be modelled by P(s)= ... A company that sells sweatshirts finds that the profit can be modelled by P(s)= ...
How body makes blood flow more into brain instead of foot? How body makes blood flow more into brain instead of foot?
Your company advertises all prices on the menu board as a final price, including HST of 13%. A ... Your company advertises all prices on the menu board as a final price, including HST of 13%. A ...
Video: Types of Shock (Part 2 of 2)

For a complete list of videos, visit our video library