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 43 times)

bclement10

  • Hero Member
  • *****
  • Posts: 560
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 sold59,00062,500
Selling price$600$650
Direct materials (square feet)152,000155,500
Direct materials costs per square foot$60$68
Manufacturing capacity in units of XT1562,90062,900
Total conversion costs$6,290,000$6,730,300
Conversion costs per unit of capacity$100$107
Selling and customer-service capacity (customers)170170
Total selling and customer-service costs$2,567,000$2,669,000
Selling and customer-service capacity cost per customer$15,100$15,700

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 160 customers in 2017 and 165 customers in 2018.

What is the net effect on operating income as a result of the price-recovery component? (Round any intermediary calculations to two decimals and your final answer to the nearest dollar.)
◦ $1,292,700 F
◦ $1,545,000 U
◦ $1,292,700 U
◦ $1,545,000 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 bclement10 on Mar 6, 2021

alvinum

  • Sr. Member
  • ****
  • Posts: 317
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


bclement10

  • Member
  • Posts: 560
Reply 2 on: Mar 6, 2021
Excellent

komodo7

  • Member
  • Posts: 322
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

The strongest synthetic topical retinoid drug available, tazarotene, is used to treat sun-damaged skin, acne, and psoriasis.

Did you know?

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

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

Succession in the intertidal zone involves colonization and competition for limited space among spec Succession in the intertidal zone involves colonization and competition for limited space among spec
On the slopes of Chimborazo, a 6,310 m high volcanic peak in the Andes Mountains of Ecuador, Alexand On the slopes of Chimborazo, a 6,310 m high volcanic peak in the Andes Mountains of Ecuador, Alexand
Sample Exercise Program for Limited Older Adults (cont.) Sample Exercise Program for Limited Older Adults (cont.)
Importance of Considering Gestalt Principles in Product Design Importance of Considering Gestalt Principles in Product Design
Find derivative using product rule Find derivative using product rule
The different grade of cellular differentiation The different grade of cellular differentiation
Video: Acids and bases - definition

For a complete list of videos, visit our video library