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 114 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
YES! Correct, THANKS for helping me on my review

irishcancer18

  • Member
  • Posts: 310
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Did you know?

The strongest synthetic topical retinoid drug available, tazarotene, is used to treat sun-damaged skin, acne, and psoriasis.

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

(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
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
Importance of Considering Gestalt Principles in Product Design Importance of Considering Gestalt Principles in Product Design
Family interactive style predicts academic achievement in high school Family interactive style predicts academic achievement in high school
Use the product rule to find derivative Use the product rule to find derivative
Find the two integers that have a sum of 20 and a maximum product Find the two integers that have a sum of 20 and a maximum product
Video: Humerus Adduction Animation

For a complete list of videos, visit our video library