Dallas Co. has three product lines, A, B, and C. The following financial information is available for this year:
|Product A||Product B||Product C|
|Total variable costs||50,000||35,000||40,000|
a) Total operating income of the company is:
b) Assuming the company drops Product Line C because it generates a loss without replacing it, operating income for the firm will: c) Product Line C is discontinued and the manufacturing space formerly devoted to this line is used to expand the sales of Product Line A by 20%. Assuming that both the variable costs and avoidable fixed costs were increased by 30%, operating income for the company will:
d) Assuming that Product Line C is discontinued and the manufacturing space formerly devoted to this line is rented for $6,000 per year, operating income for the company will:
Dallas Kitchen replaced the convection oven two years ago. Today, the company found that a new convection oven that cooks more quickly with lower operating expenses was aailable. The company is considering the purchase of this faster, lower-operating cost convection oven to replace the existing one they recently purchased.
Selected information about the two ovens is given below:
|Current Oven||New Oven|
|Current salvage value||$40,000||?|
|Remaining life||5 years||5 years|
|Annual operating expenses||$25,000||$20,000|
|Disposal vale in 5 years||$0||$0|
a. What costs are sunk? b. What costs are relevant? c. What are the net cash flows over the next 5 years assuming the company purchases the new convection oven? d. What other items should the company consider when making this decision?
In an effort to improve its competitive position, Dallas Co. recently introduced a new inventory control system. Its management accountant assembled the following data regarding the recent change:
|Item||Before new system||After new system|
|Production cycle time||50 days||40 days|
|Estimated cost data, % of sales|
The company’s inventory financing cost is estimated as 10% per year.
1. Estimate the net financial benefit (expressed in terms of operating income) that the company realized from the switch to a new inventory control system. 2. List four (4) non-financial benefits the company might expect as a result to its move to new inventory control system. 3. What are the primary expected costs of implementing a new inventory control system?
We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.Read more
The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.Read more
The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.Read more
By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.Read more