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 37 times)

bclement10

  • Hero Member
  • *****
  • Posts: 560
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 sold59,00062,500
Selling price$600$650
Direct materials (square feet)152,000155,500
Direct materials costs per square foot$60$68
Manufacturing capacity in units of XT1562,90062,900
Total conversion costs$6,290,000$6,730,300
Conversion costs per unit of capacity$100$107
Selling and customer-service capacity (customers)170170
Total selling and customer-service costs$2,567,000$2,669,000
Selling and customer-service capacity cost per customer$15,100$15,700

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 net effect on operating income as a result of the price-recovery component? (Round any intermediary calculations to two decimals and your final answer to the nearest dollar.)
◦ $1,292,700 F
◦ $1,545,000 U
◦ $1,292,700 U
◦ $1,545,000 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 bclement10 on Mar 6, 2021

alvinum

  • Sr. Member
  • ****
  • Posts: 317
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


bclement10

  • Member
  • Posts: 560
Reply 2 on: Mar 6, 2021
Gracias!

pangili4

  • Member
  • Posts: 346
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

The U.S. Pharmacopeia Medication Errors Reporting Program states that approximately 50% of all medication errors involve insulin.

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

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?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

The stability of carbon bonds makes life possible even in extreme environments The stability of carbon bonds makes life possible even in extreme environments
The High Plains Aquifer The High Plains Aquifer
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 ...
The direct product of phosphate hydrolysis from PEP is the enol form of pyruvate The direct product of phosphate hydrolysis from PEP is the enol form of pyruvate
Product safety Product safety
The phenotype of an organism is the product of interactions The phenotype of an organism is the product of interactions
Video: Energy sources - types

For a complete list of videos, visit our video library