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 25 times)

rmenurse

  • Hero Member
  • *****
  • Posts: 513
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 sold59,00061,200
Selling price$900$930
Direct materials (square feet)150,000153,500
Direct materials costs per square foot$58$64
Manufacturing capacity in units of XT1563,20063,200
Total conversion costs$6,636,000$7,204,800
Conversion costs per unit of capacity$105$114
Selling and customer-service capacity (customers)160160
Total selling and customer-service costs$2,480,000$2,584,000
Selling and customer-service capacity cost per customer$15,500$16,150

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 145 customers in 2017 and 150 customers in 2018.

What is the net effect on operating income as a result of the productivity component? (Round any intermediary calculations to two decimals and your final answer to the nearest dollar.)
◦ $1,664,016  U
◦ $124,672 F
◦ $1,664,016  F
◦ $124,672 U
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 rmenurse on Mar 6, 2021

ryrychapman11

  • Sr. Member
  • ****
  • Posts: 334
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


rmenurse

  • Member
  • Posts: 513
Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review

dreamfighter72

  • Member
  • Posts: 355
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Using concept maps as a learning strategy Using concept maps as a learning strategy
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.
A warning label on a Honda hybrid warns that a person can be killed due to the high-voltage ... A warning label on a Honda hybrid warns that a person can be killed due to the high-voltage ...
How to use implicit differentiation How to use implicit differentiation
Ratio of College Wages to High-School Wages Ratio of College Wages to High-School Wages
A company that makes environmental measuring devices has calculated their revenue and costs as ... A company that makes environmental measuring devices has calculated their revenue and costs as ...
Video: Brief Summary on Photosynthesis - Animation

For a complete list of videos, visit our video library