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 30 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
Excellent

sultansheikh

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

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?

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.

(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
Bipolar disease. The term bipolar means “pertaining to two poles.” The individual with this form of Bipolar disease. The term bipolar means “pertaining to two poles.” The individual with this form of
Anthropologist Andrea Wiley (left) investigates the effects of high-altitude living on reproductive Anthropologist Andrea Wiley (left) investigates the effects of high-altitude living on reproductive
Four Brain Structures with High Myelination in Early Childhood Four Brain Structures with High Myelination in Early Childhood
Using the cursors on the oscilloscope, the high- and low-oxygen sensor values can be displayed on ... Using the cursors on the oscilloscope, the high- and low-oxygen sensor values can be displayed on ...
The pH scale is logarithmic. A low pH indicates acidic conditions, whereas a high pH indicates ... The pH scale is logarithmic. A low pH indicates acidic conditions, whereas a high pH indicates ...
Video: HIV Infection: Viral life cycle

For a complete list of videos, visit our video library