E17-24. Sell or Process Further Ecolab produces cleaning and sanitizing chemicals for commercial markets. Assume the processes raw material D into joint products E and F. Raw material D costs $8 per liter. It costs $15) to convert 100 liters of D into 60 liters of E and 40 liters of F. Product F can be sold immediately for $40 per liter or processed further into Product G at an additional cost of $12 per liter. Product G can then be sold for $55 per liter. Determine whether Product F should be sold or processed further into Product G. P E17-25. Limited Resour
Required a. Determine the unit cost for each job using a traditional plantwide overhead rate based on machine hours. b. Determine the unit cost for each job using ABC. (Round answers to two decimal places.) c. As the manager of Ridgeland, is there additional information that you would want to help you evalu- ate the pricing and profitability of Jobs 201 and 202? d. Assuming the company has been using the method required in part a, how should management react to the findings in part b?
Q3: Prepare financial (dis)advantage of closing the plant down for the first two years- it would be closed down and the following years. (show all computations for financial (dis)advantage analysis to receive credit)
4- (15 pts.) A midsize corporation is considering purchase of Cyber Li- ability Insurance Policy. The following table provides the probability distribution of yearly cost coverage associated with different level of Cyber Security IT network interruptions for this corporation.
Required Determine the effect each of the following situations would have on monthly profits. Each situation should be evaluated independently of all others. a. Product A is discontinued. b. Product A is discontinued, and the subsequent loss of customers causes sales of Product B to decline by 150 units. c. The selling price of A is increased to $25 with a sales decrease of 250 units. d. The price of Product B is increased to $20 with a resulting sales decrease of 300 units. However, some of these customers shift to Product A; sales of Product A increase by 200 units. e. Product A is discontinued, and the plant in which A was produced is used to produce D, a new prod- uct. Product D has a unit contribution margin of $2. Monthly sales of Product D are predicted to be 1,500 units. f. The selling price of Product C is increased to $35, and the selling price of Product B is decreased to $10. Sales of C decline by 350 units, while sales of B increase by 400 units.
Question 6) Compare Islamic financing and conventional financing methods. What are the key differences?
a. A finance manager plays a key role in the organization. Explain any four functions of a financial manager to support the statement.(12 marks) b. Wealth management is a more reasonable argument for financial management than profit maximization. Discuss.(8 marks)
The Bedford Company produces Component A-4 that is used by the company in its production of Product ST. The costs of producing Component A-4 consist of $16 for materials, $14 for labor, $6 of variable overhead, and $8 of fixed overhead. The company is considering buying the component for $40 per unit and using the facilities to produce an equal number of units of Product R that the company estimates will bring in a contribution margin of $6 per unit produced. REQUIRED: Determine whether Component A-4 should be made or bought. Show your computations.
Assume that, if the contract is accepted, regular production and sales will be unaffected, and no alternative uses of the productive capacity will be foregone. Show whether the government contract should be accepted. Assume that normal production will be decreased by one unit for every unit manufactured to fill the contract. Show whether, under these revised circumstances, the government contract should be accepted. Explain briefly in terms of opportunity costs.