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 123 times)

Cooldude101

  • Hero Member
  • *****
  • Posts: 557
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 sold50,00052,000
Selling price$400$470
Direct materials (square feet)160,000163,400
Direct materials costs per square foot$51$57
Manufacturing capacity in units of XT1562,50062,500
Total conversion costs$6,875,000$7,250,000
Conversion costs per unit of capacity$110$116
Selling and customer-service capacity (customers)180180
Total selling and customer-service costs$2,772,000$2,893,500
Selling and customer-service capacity cost per customer$15,400$16,075

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 165 customers in 2017 and 170 customers in 2018.

What is the net effect on operating income as a result of the growth component? (Round any intermediary calculations to two decimals and your final answer to the nearest dollar.)
◦ $2,977,094 F
◦ $473,600 F
◦ $473,600 U
◦ $2,977,094 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 Cooldude101 on Mar 6, 2021

cloudre37

  • Sr. Member
  • ****
  • Posts: 332
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


Cooldude101

  • Member
  • Posts: 557
Reply 2 on: Mar 6, 2021
Wow, this really help

phuda

  • Member
  • Posts: 348
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

The types of cancer that alpha interferons are used to treat include hairy cell leukemia, melanoma, follicular non-Hodgkin's lymphoma, and AIDS-related Kaposi's sarcoma.

A very high-resolution texture of the Moon, including a normal map A very high-resolution texture of the Moon, including a normal map
Stem cell division and differentiation Stem cell division and differentiation
Reduced mobility in late adulthood often results in more limited activities and smaller social ... Reduced mobility in late adulthood often results in more limited activities and smaller social ...
Ratio of College Wages to High-School Wages Ratio of College Wages to High-School Wages
Differentiation-find the derivative by the delta method Differentiation-find the derivative by the delta method
The different grade of cellular differentiation The different grade of cellular differentiation
Video: Acid-base imbalances - metabolic acidosis and alkalosis

For a complete list of videos, visit our video library