Problem: Odilon Company makes a household appliance with model number X500. The goal for 2019 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of X500 units that can be produced. The industry market size for appliances increased 10% from 2018 to 2019. The following additional data are available for 2018 and 2019:
|
|
2018
|
2019
|
|
Units of X500 produced and sold
|
10,000
|
11,000
|
|
Selling price
|
$100
|
$95
|
|
Direct materials (square feet)
|
30,000
|
29,000
|
|
Direct material costs per square foot
|
$9
|
$10
|
|
Manufacturing capacity for X500 (units)
|
12,500
|
12,000
|
|
Total conversion costs
|
$250,000
|
$240,000
|
|
Conversion costs per unit of capacity
|
$20
|
$20
|
Required:
Question 1: What is operating income for 2018?
Question 2: What is operating income for 2019?
With our Operating Income Assignment Help service, you will always get the most authentic, error free, and plagiarized free assignment paper every time, without putting your hands into the tedious job of assignment writing.
Tags: Operating Income Assignment Help, Operating Income Homework Help, Operating Income Coursework, Operating Income Solved Assignments