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 38 times)

iveyjurea

  • Hero Member
  • *****
  • Posts: 555
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 sold50,00052,200
Selling price$600$660
Direct materials (square feet)155,000158,750
Direct materials costs per square foot$55$60
Manufacturing capacity in units of XT1562,60062,600
Total conversion costs$6,510,400$6,886,000
Conversion costs per unit of capacity$104$110
Selling and customer-service capacity (customers)190190
Total selling and customer-service costs$2,888,000$3,002,000
Selling and customer-service capacity cost per customer$15,200$15,800

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 180 customers in 2017 and 185 customers in 2018.

What is the revenue effect of the price-recovery component?
◦ $3,132,000 U
◦ $1,320,000 U
◦ $1,320,000 F
◦ $3,132,000 F
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 iveyjurea on Mar 6, 2021

Ksanderson1296

  • Sr. Member
  • ****
  • Posts: 339
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


iveyjurea

  • Member
  • Posts: 555
Reply 2 on: Mar 6, 2021
:D TYSM

kalskdjl1212

  • Member
  • Posts: 353
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

The largest baby ever born weighed more than 23 pounds but died just 11 hours after his birth in 1879. The largest surviving baby was born in October 2009 in Sumatra, Indonesia, and weighed an astounding 19.2 pounds at birth.

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

Medication errors are more common among seriously ill patients than with those with minor conditions.

Did you know?

More than 4.4billion prescriptions were dispensed within the United States in 2016.

(c) snow in Nunavut, alter the local albedo, causing altered microclimates. High albedos are found (c) snow in Nunavut, alter the local albedo, causing altered microclimates. High albedos are found
Modern primate study sometimes involves high-tech methods. This golden lion tamarin is having a batt Modern primate study sometimes involves high-tech methods. This golden lion tamarin is having a batt
Rivers Are a Product of Their Watersheds Rivers Are a Product of Their Watersheds
The high-voltage shut-off switch on a Ford Escape hybrid. The switch is located under the carpet at ... The high-voltage shut-off switch on a Ford Escape hybrid. The switch is located under the carpet at ...
High school science classes are required to use deductive logic High school science classes are required to use deductive logic
High stress, by household type (age-standardized), age 18+, Canada, 1994-1995 High stress, by household type (age-standardized), age 18+, Canada, 1994-1995
Video: Enzyme structure - Properties of enzymes

For a complete list of videos, visit our video library