Complete the attached questions 5 times
Complete the attached questions 5 times. All information is attached
BUSI 3320 – Fall 2020
Chapter 9 Hand-in assignment
Due date: See schedule of due dates on Moodle
Suppose the Basketball Hall of Fame has approached Sports Cards Inc. with a special order. The Hall of Fame wants to buy 50,000 packs of basketball cards for a special promotional campaign and offers to pay $0.40 per pack.
The price charged to regular customers is $0.75 per pack.
Sports Cards Inc. production costs per pack are as follows:
Top managers at Video avenue are alarmed by their operating losses. They are considering dropping the ABC product line. Company accountants have prepared the following analysis to help make the decision.
|TOTAL||XYZ PRODUCT||ABC PRODUCT|
|Total fixed expenses||195,000||125,000||70,000|
Fibre Systems Inc. manufactures an optical switch that it uses in its final product. The company incurred the following manufacturing costs when it produced 70,000 optical switches last year:
|Total manufacturing costs for 70,000 units||$1,330,000|
Fiber Systems does not yet know how many switches it will need this year. However, another company has offered to sell Fiber Systems the switch for $14 per unit.
FitTime Inc. produces two types of exercise treadmills, regular and deluxe. The exercise craze is such that FitTime could use all of its available machine hours producing either model. The two models are processes in the same department. Information on the two models is as follows:
|Variable manufacturing overhead||174||87|
|Total variable costs||550||275|
Total fixed costs are $100,000 which are all unavoidable. Each deluxe model takes 2.5 hours to produce and each regular model takes 1.5 hours to produce. FitTime has 2,000 machine hours available.
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