DOCUMENT A COUNTING THE GRAND PRACIRE ade by the wed using). The bla Question 10: Engineering Lad. males industrial power drills, which is made components EM (electrical and mechanical component land PH(plastic housing table shows the cost of plastic housing separately from the cost of the electrical and electrical and medias components: ЕКІ Industrial Drita Plastic Housing Electrical and Mechanical Components 1.000 4400.000 400.000 300, 20.00 Gales 1,00,000 units T 100 variable Costa Direct materials 5,00.000 49.00 Direct Labour -3,00,000 arable factory on thread 1,00.000 200.000 Other Variable costs 1,00.000 Sales commission 10% of sales 10.00.000 10.000 Total Variable costs 60.60.000 10,00.000 Contribution 100 total fixed costs 22.20.000 480,000 Operating Income 100.000 Answer the following independently
(1) During the year, a prospective customer offered 82.000 for 1,000 drills. The drills would be manufactured in addition to the 1,00,000 units sold. Engineering Lid would pay the regular sales commission rate on the 1.000 drills. The chairman rejected the order because it was below our costs. Calculate operating income il Engineering Lid. Accepts the one ( A supplier offers to manufacture the yearly supply of 1,00,000 units plastic housing components for 13.50 each. Assume that Engineering Ltd. Would avoid costs assigned to plastic housing it is a purchase. Calculate operating income il Engineering 350.000 of de Lid. decides to purchase the plastic housing from the supplier Assuming that Engineering Lid could purchase 1,20,000 units components for 13.50 each and use the vacated plant capacity for the manufacture plastic housing double version of drill of 20,000 units and sell them for 130 each in addition to the colo the 100.000 regular units) at a variable cost of e the 10% sales commission. All the hard costs pertaining to the plastic housing 90 each. Catlusive of h i s would continue because these costs are related to the manufa used. Calculate operating income of Engineering Lid. purchased to the manufacturing facilities primates manufacture the deluxe version drills. purchase the plastic housing and Na 2 CHI Hted to the meaning to the or housings and. Get Custom Essay Writing today.