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 112 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
Wow, this really help

patma1981

  • Member
  • Posts: 292
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

The most destructive flu epidemic of all times in recorded history occurred in 1918, with approximately 20 million deaths worldwide.

Did you know?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Two stubby screwdrivers used to access screws that have limited space above. A straight blade is on ... Two stubby screwdrivers used to access screws that have limited space above. A straight blade is on ...
The primary ignition system is used to trigger and therefore create the secondary (high-voltage) ... The primary ignition system is used to trigger and therefore create the secondary (high-voltage) ...
Eating a variety of foods from all food groups is the best strategy to meet your daily mineral needs Eating a variety of foods from all food groups is the best strategy to meet your daily mineral needs
The distribution of high-energy, nutritious biscuits was a lifeline in the first days after the 2010 The distribution of high-energy, nutritious biscuits was a lifeline in the first days after the 2010
High stress, by household type (age-standardized), age 18+, Canada, 1994-1995 High stress, by household type (age-standardized), age 18+, Canada, 1994-1995
A simple pendulum of length 2.5 m m makes 5.0 complete swings in 16 s s . What is the ... A simple pendulum of length 2.5 m m makes 5.0 complete swings in 16 s s . What is the ...
Video: Congenital Heart Defects Animation

For a complete list of videos, visit our video library