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Author Question: Trusted Products Company makes a household appliance with model number L800. The goal for 2018 is to ... (Read 59 times)

kodithompson

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on: Mar 6, 2021
Trusted Products Company makes a household appliance with model number L800. The goal for 2018 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of L800 units that can be produced. The industry market size for appliances increased 2% from 2017 to 2018. The following additional data are available for 2017 and 2018:

20172018
Units of L800 produced and sold31,00031,620
Selling price$310$290
Direct materials (square feet)98,00096,500
Direct material costs per square foot$34$36
Manufacturing capacity for L800 (units)38,75037,350
Total conversion costs$1,162,500$1,120,500
Conversion costs per unit of capacity$30$30

Overall, was Trusted Products's strategy successful in 2018?
◦ Yes, because total revenues increased
◦ No, because operating income decreased
◦ No, because direct materials usage per unit increased
◦ No, because direct material cost per unit decreased
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by kodithompson on Mar 6, 2021

joneynes

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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.
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kodithompson

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)

softEldritch

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Reply 3 on: Yesterday
Excellent

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