Question
In: Accounting
Tharp Company operates a small factory in which it manufactures two products: C and D. Production...
Tharp Company operates a small factory in which it manufactures
two products: C and D. Production and sales results for last year
were as follows.
| C | D | ||||
| Units sold | 9,000 | 19,000 | |||
| Selling price per unit | $97 | $75 | |||
| Variable cost per unit | 50 | 39 | |||
| Fixed cost per unit | 20 | 20 |
For purposes of simplicity, the firm averages total fixed costs
over the total number of units of C and D produced and sold.
The research department has developed a new
product (E) as a replacement for product D. Market studies show
that Tharp Company could sell 11,100 units of E next year at a
price of $117; the variable cost per unit of E is $45. The
introduction of product E will lead to a 10% increase in demand for
product C and discontinuation of product D. If the company does not
introduce the new product, it expects next year’s results to be the
same as last year’s.
Compute company profit with products C & D and with products C
& E.
| Net profit with products C & D | $ | ||
| Net profit with products C & E | $ |
Should Tharp Company introduce product E next year?
NoYes
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Tharp Company operates a small factory in which it manufactures two products: C and D. Production...
Tharp Company operates a small factory in which it manufactures
two products: C and D. Production and sales results for last year
were as follows.
C
D
Units sold
8,800
19,000
Selling price per unit
$93
$75
Variable cost per unit
47
39
Fixed cost per unit
20
20
For purposes of simplicity, the firm averages total fixed costs
over the total number of units of C and D produced and sold.
The research department has developed a new
product...
Company X operates a small factory in which it manufactures two products: C and D. Production...
Company X operates a small factory in which it manufactures two
products: C and D. Production and sales results for last year were
as follows:
Item C D
Units sold 9,000 20,000
Selling price per unit 98 75
Variable cost per unit 50 40
Fixed cost per unit 24 24
For purposes of simplicity, the firm averages total fixed costs
over the total number of units produced. The research department
has developed a new product (E) as a replacement for...
Tharp Company operates a small factory in which it manufactures two products: C and D. Production...
Tharp Company operates a small factory in which it manufactures
two products: C and D. Production and sales results for last year
were as follows.
C
D
Units sold
9,100
19,600
Selling price per unit
$95
$77
Variable cost per unit
50
41
Fixed cost per unit
22
22
For purposes of simplicity, the firm averages total fixed costs
over the total number of units of C and D produced and sold.
The research department has developed a new
product...
Tharp Company operates a small factory in which it manufactures two products: C and D. Production...
Tharp Company operates a small factory in which it manufactures
two products: C and D. Production and sales results for last year
were as follows.
C
D
Units sold
9,200
19,900
Selling price per unit
$95
$78
Variable cost per unit
49
42
Fixed cost per unit
25
25
For purposes of simplicity, the firm averages total fixed costs
over the total number of units of C and D produced and sold.
The research department has developed a new
product...
Roland Company operates a small factory in which it manufactures two products: A and B. Production...
Roland Company operates a small factory in which it manufactures
two products: A and B. Production and sales result for last year
were as follow:
A
B
Units sold
8,000
16,000
Selling price per unit
65
52
Variable costs per unit
35
30
Fixed costs per unit
15
15
For purposes of simplicity, the firm allocates total fixed costs
over the total number of units of A and B produced and sold.
The research department has developed a new product...
1. ) Cab Company manufactures two products, Product C and Product D. The company estimated it...
1. ) Cab Company manufactures two products, Product C and
Product D. The company estimated it would incur $120,100 in
manufacturing overhead costs during the current period. Overhead
currently is applied to the products on the basis of direct labor
hours. Data concerning the current period's operations appear
below: Product C Product D Estimated volume 400 units 3,000 units
Direct labor hours per unit 1.20 hours 1.30 hour Direct materials
cost per unit $4.00 $22.80 Direct labor cost per unit...
Cabio Company manufactures two products, Product C and Product D. The company estimated it would incur...
Cabio Company manufactures two products, Product C and Product
D. The company estimated it would incur $194,910 in manufacturing
overhead costs during the current period. Overhead currently is
applied to the products on the basis of direct labor-hours. Data
concerning the current period’s operations appear below:
Product C
Product D
Estimated volume
4,650
units
3,850
units
Direct labor-hours per unit
2.90
hours
3.00
hours
Direct materials cost per unit
$
20.10
$
33.90
Direct labor cost per unit
$
29.00...
Cabat Company manufactures two products, Product C and Product D. The company estimated it would incur...
Cabat Company manufactures two products, Product C and Product
D. The company estimated it would incur $177,910 in manufacturing
overhead costs during the current period. Overhead currently is
applied to the products on the basis of direct labor hours. Data
concerning the current period's operations appear below:
Product C Product D
Estimated volume 3,800 units 3,000 units
Direct labor hours per unit 1.20 hours 0.80 hour
Direct materials cost per unit $11.60 $23.70
Direct labor cost per unit $10.80 $...
Cabio Company manufactures two products, Product C and Product D. The company estimated it would incur...
Cabio Company manufactures two products, Product C and Product
D. The company estimated it would incur $177,910 in manufacturing
overhead costs during the current period. Overhead currently is
applied to the products on the basis of direct labor-hours. Data
concerning the current period’s operations appear below:
Product C
Product D
Estimated volume
3,800
units
3,000
units
Direct labor-hours per unit
1.20
hours
.80
hour
Direct materials cost per unit
$
11.60
$
23.70
Direct labor cost per unit
$
12.00...
Cabio Company manufactures two products, Product C and Product D. The company estimated it would incur...
Cabio Company manufactures two products, Product C and Product
D. The company estimated it would incur $180,910 in manufacturing
overhead costs during the current period. Overhead currently is
applied to the products on the basis of direct labor-hours. Data
concerning the current period’s operations appear below:
Product C
Product D
Estimated volume
3,950
units
3,150
units
Direct labor-hours per unit
1.50
hours
1.60
hours
Direct materials cost per unit
$
13.10
$
25.50
Direct labor cost per unit
$
15.00...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Write a class "car" with data fields "make" and "speed." The constructor should accept the "make"...
- When managing the performance of an organization, the leadership is always balancing between the risks and...
- From the following mySql query create a function that returns a nth value of a table:...
- THE COFFEE CLUB celebrates almost three decades of really good food, great service and excellent coffee....
- Beryl's Iced Tea currently rents a bottling machine for $ 52 comma 000 per year, including...
- The defining features of oppression are that it is: pervasive, restrictive, hierarchical, complex across relationships, and...
- Kim Inc. must install a new air conditioning unit in its main plant. Kim must install...
ADVERTISEMENT