Part (A) of the problem can be disregarded. I need helpfilling in the table in the lower bottom of the problem usinginformation from part (B). Thank you
(A) Strategic Analysis of Profitability of RanshamCompany:
Income
Statement
Amounts
in 2014
Revenue and
Cost Effects
of Growth
Component
in 2015
Revenue and
Cost Effects of
Price-Recovery
Component
in 2015
Cost Effect of
Productivity
Component
in 2015
Income
Statement
Amounts
in 2015
Revenues ($)
34,000
10,000 F
1,000 U
(b)
(e)
Costs
23,500
(a)
500 U
(c)
26,100
Operating income
10,500
5,500 F
1,500 U
2,400 F
(d)
What is the cost effect of the growth component (a)?
What is the revenue effect of the productivity component(b)?
What is the cost effect of the productivity component (c)?
What is the operating income amount for 2015 (d)?
What is the revenue amount for 2015 (e)?
Out of the two basic strategies, Ransham Companyâs strategyis
(B) Sting Corporation makes a high-end computer monitor,CM7. Sting Corporation presents the following data for the years2012 and 2013:
2012 2013
Units of CM 7 produced andsold 5,000 5,500
Sellingprice $400 $440
Direct materials(pounds) 15,000 15,375
Direct materials costs perpound $40 $44
Manufacturing capacity for CM7(units) 10,000 10,000
Conversioncosts $1,000,000 $1,100,000
Conversion costs per unit ofcapacity $100 $110
Selling and customer-service capacity(customers) 60 58
Total selling and customer-servicecosts $360,000 $362,500
Selling and customer-service capacity costpercustomer $6,000 $6,250
Manufacturing conversion costs in each year depend on productioncapacity defined in terms of CM7 units that can be produced.Selling and customer-service costs depend on the number ofcustomers that the customer and service functions are designed tosupport. Sting Corporation has 100 customers in 2012 and 115customers in 2013. The industry market size for high-end computermonitors increased 5% from 2012 to 2013.
Using the template table used in the Ransham Company exampleabove, build a table reconciling the operating income of 2012 tothe operating income of 2013. Out of the two basic strategies,Sting Corporationâs strategy is ________
Income
Statement
Amounts
in 2012
Revenue and
Cost Effects
of Growth
Component
in 2013
Revenue and
Cost Effects of
Price-Recovery
Component
in 2013
Cost Effect of
Productivity
Component
in 2013
Income
Statement
Amounts
in 2013
Revenues ($)
Costs
Operating income
Part (A) of the problem can be disregarded. I need helpfilling in the table in the lower bottom of the problem usinginformation from part (B). Thank you
(A) Strategic Analysis of Profitability of RanshamCompany:
| Income Statement Amounts in 2014 | Revenue and Cost Effects of Growth Component in 2015 | Revenue and Cost Effects of Price-Recovery Component in 2015 | Cost Effect of Productivity Component in 2015 | Income Statement Amounts in 2015 | |
Revenues ($) | 34,000 | 10,000 F | 1,000 U | (b) | (e) |
Costs | 23,500 | (a) | 500 U | (c) | 26,100 |
Operating income | 10,500 | 5,500 F | 1,500 U | 2,400 F | (d) |
What is the cost effect of the growth component (a)?
What is the revenue effect of the productivity component(b)?
What is the cost effect of the productivity component (c)?
What is the operating income amount for 2015 (d)?
What is the revenue amount for 2015 (e)?
Out of the two basic strategies, Ransham Companyâs strategyis
(B) Sting Corporation makes a high-end computer monitor,CM7. Sting Corporation presents the following data for the years2012 and 2013:
2012 2013
Units of CM 7 produced andsold 5,000 5,500
Sellingprice $400 $440
Direct materials(pounds) 15,000 15,375
Direct materials costs perpound $40 $44
Manufacturing capacity for CM7(units) 10,000 10,000
Conversioncosts $1,000,000 $1,100,000
Conversion costs per unit ofcapacity $100 $110
Selling and customer-service capacity(customers) 60 58
Total selling and customer-servicecosts $360,000 $362,500
Selling and customer-service capacity costpercustomer $6,000 $6,250
Manufacturing conversion costs in each year depend on productioncapacity defined in terms of CM7 units that can be produced.Selling and customer-service costs depend on the number ofcustomers that the customer and service functions are designed tosupport. Sting Corporation has 100 customers in 2012 and 115customers in 2013. The industry market size for high-end computermonitors increased 5% from 2012 to 2013.
Using the template table used in the Ransham Company exampleabove, build a table reconciling the operating income of 2012 tothe operating income of 2013. Out of the two basic strategies,Sting Corporationâs strategy is ________
| Income Statement Amounts in 2012 | Revenue and Cost Effects of Growth Component in 2013 | Revenue and Cost Effects of Price-Recovery Component in 2013 | Cost Effect of Productivity Component in 2013 | Income Statement Amounts in 2013 | |
Revenues ($) | |||||
Costs | |||||
Operating income |
Related questions
Can someone please help me fill this out?
Following a strategy of product differentiation, Arseniq Company makes a high-end Appliance, XT15. Arseniq presents the following data for the years 2016 and 2017:
2016 2017
Units of XT15 produced and sold 50,000 52,500
Selling price $500 $550
Direct materials (square feet) 150,000 153,750
Direct materials costs per square foot $50 $55
Manufacturing capacity in units of XT15 62,500 62,500
Total conversion costs $6,250,000 $6,875,000
Conversion costs per unit of capacity $100 $110
Selling and customer-service capacity (customers) 150 150
Total selling and customer-service costs $2,250,000 $2,343,750
Selling and customer-service capacity cost per customer $15,000 $15,625
Arseniq produces no defective units but it wants to reduce direct materials usage per unit of XT15. Manufacturing conversion costs in each year depend on production capacity defined in terms of XT15 units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Arseniq had 140 customers in 2016 and 145 customers in 2017.
| Income Statement Amounts in 2016 | Revenue and Cost Effects of Growth Component in 2017 | Revenue and Cost Effects of Price-Recovery Component in 2017 | Cost Effect of Productivity Component in 2017 | Income Statement Amounts in 2017 | |
| Revenues ($) | |||||
| Direct Materials (Variable) | |||||
| Conversion costs (Fixed) | |||||
| Selling and customer service costs (Fixed) | |||||
| Operating income |
Required information
[The following information applies to the questionsdisplayed below.]
Adger Corporation is a service company that measures its outputbased on the number of customers served. The company provided thefollowing fixed and variable cost estimates that it uses forbudgeting purposes and the actual results for May as shownbelow:
| Fixed Element per Month | Variable Element per Customer Served | Actual Total for May | |||||
| Revenue | $ | 5,200 | $ | 170,000 | |||
| Employee salaries and wages | $ | 51,000 | $ | 1,200 | $ | 92,700 | |
| Travel expenses | $ | 650 | $ | 20,600 | |||
| Other expenses | $ | 30,000 | $ | 29,000 | |||
When preparing its planning budget the company estimated that itwould serve 30 customers per month; however, during May the companyactually served 35 customers.
Required:
1. What amount of revenue would be included in Adgerâs flexiblebudget for May?
2. What amount of employee salaries and wages would be includedin Adgerâs flexible budget for May?
3. What amount of travel expenses would be included in Adgerâsflexible budget for May?
4. What amount of other expenses would be included in Adgerâsflexible budget for May?
5. What net operating income would appear in Adgerâs flexiblebudget for May?
6. What is Adgerâs revenue variance for May? (Indicatethe effect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e., zero variance). Inputall amounts as positive values.)
7. What is Adgerâs employee salaries and wages spending variancefor May? (Indicate the effect of each variance by selecting"F" for favorable, "U" for unfavorable, and "None" for no effect(i.e., zero variance). Input all amounts as positivevalues.)
8. What is Adgerâs travel expenses spending variance for May?(Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance). Input all amounts as positive values.)
9. What is Adgerâs other expenses spending variance for May?(Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance). Input all amounts as positive values.)
10. What amount of revenue would be included in Adgerâs planningbudget for May?
11. What amount of employee salaries and wages would be includedin Adgerâs planning budget for May?
12. What amount of travel expenses would be included in Adgerâsplanning budget for May?
13. What amount of other expenses would be included in Adgerâsplanning budget for May?
14. What activity variance would Adger report in May withrespect to its revenue? (Indicate the effect of eachvariance by selecting "F" for favorable, "U" for unfavorable, and"None" for no effect (i.e., zero variance). Input all amounts aspositive values.)
15. What activity variances would Adger report with respect toeach of its expenses for May? (Indicate the effect of eachvariance by selecting "F" for favorable, "U" for unfavorable, and"None" for no effect (i.e., zero variance). Input all amounts aspositive values.)
