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 89 times)

vicotolentino

  • Hero Member
  • *****
  • Posts: 552
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 sold55,00058,500
Selling price$400$440
Direct materials (square feet)150,000153,300
Direct materials costs per square foot$51$55
Manufacturing capacity in units of XT1562,70062,700
Total conversion costs$6,270,000$6,708,900
Conversion costs per unit of capacity$100$107
Selling and customer-service capacity (customers)150150
Total selling and customer-service costs$2,325,000$2,426,250
Selling and customer-service capacity cost per customer$15,500$16,175

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 135 customers in 2017 and 140 customers in 2018.

What is the change in operating income from 2017 to 2018?
◦ $2,418,350 U
◦ $3,740,000 F
◦ $2,418,350  F
◦ $3,740,000 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 vicotolentino on Mar 6, 2021

SamMuagrove

  • Sr. Member
  • ****
  • Posts: 312
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


vicotolentino

  • Member
  • Posts: 552
Reply 2 on: Mar 6, 2021
Wow, this really help

dawsa925

  • Member
  • Posts: 326
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Patients who have been on total parenteral nutrition for more than a few days may need to have foods gradually reintroduced to give the digestive tract time to start working again.

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

Normal urine is sterile. It contains fluids, salts, and waste products. It is free of bacteria, viruses, and fungi.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

Avoiding High-Pollution Exercise Times Avoiding High-Pollution Exercise Times
A typical module-controlled high-side driver (HSD) where the module itself supplies the electrical ... A typical module-controlled high-side driver (HSD) where the module itself supplies the electrical ...
Ten Leading Causes of Death in High-Income Countries, 2008 Ten Leading Causes of Death in High-Income Countries, 2008
How to use implicit differentiation How to use implicit differentiation
Find the derivative using the product rule Find the derivative using the product rule
Nursing Care Plan Process: Client with High Blood Lipid Levels Nursing Care Plan Process: Client with High Blood Lipid Levels
Video: Stimulus (introduction)

For a complete list of videos, visit our video library