1 answer

King City Specialty Bikes (KCSB) produces high-end bicycles. Costs to manufacture and market the bicycles at...

Question:

King City Specialty Bikes (KCSB) produces high-end bicycles. Costs to manufacture and market the bicycles at last years volume level of 1,850 bicycles per month are shown in the following table: Variable manufacturing per unit Total fixed manufacturing Variable nonmanufacturing$58.00 per unit Total fixed nonmanufacturing $226.00 $249,750 $277,500 KCSB expects to produce and sell 2,200 bicycles per month in the coming year. The bicycles sell for $650 each KCSB receives a proposal from an outside contractor who, for $165 per bicycle, will assemble 800 bicycles per month and ship them directly to KCSBs customers as orders are received from KCSBs sales force. KCSB would provide the materials for each bicycle, but the outside contractor would assemble, box, and ship the bicycles. The variable manufacturing costs would be reduced by 40% for the 800 bicycles assembled by the outside contractor, and variable nonmanufacturing costs for the 800 bicycles would be cut by 60% KCSBs marketing manager thinks that it could sell 90 specialty racing bicycles per month for $6,500 each, and its production manager thinks that it could use the idle resources to produce each of these bicycles for variable manufacturing costs of $5,300 per bicycle and variable nonmanufacturing costs of $350 per bicycle If KCSB accepts the proposal, it would be able to save 5% of fixed manufacturing costs; fixed nonmanufacturing costs would be unchanged REQUIRED [Note: Round unit cost computations to the nearest cent] What is the difference in KCSBs monthly costs between accepting the proposal and rejecting the proposal? (Note: If the costs of accepting the proposal are less than the costs of rejecting it, enter the difference as a positive number; if the accept costs are more than the reject costs, enter the difference as a negative number.) Submit AnrTries 0/10

King City Specialty Bikes (KCSB) produces high-end bicycles. Costs to manufacture and market the bicycles at last year's volume level of 1,850 bicycles per month are shown in the following table: Variable manufacturing per unit Total fixed manufacturing Variable nonmanufacturing$58.00 per unit Total fixed nonmanufacturing $226.00 $249,750 $277,500 KCSB expects to produce and sell 2,200 bicycles per month in the coming year. The bicycles sell for $650 each KCSB receives a proposal from an outside contractor who, for $165 per bicycle, will assemble 800 bicycles per month and ship them directly to KCSB's customers as orders are received from KCSB's sales force. KCSB would provide the materials for each bicycle, but the outside contractor would assemble, box, and ship the bicycles. The variable manufacturing costs would be reduced by 40% for the 800 bicycles assembled by the outside contractor, and variable nonmanufacturing costs for the 800 bicycles would be cut by 60% KCSB's marketing manager thinks that it could sell 90 specialty racing bicycles per month for $6,500 each, and its production manager thinks that it could use the idle resources to produce each of these bicycles for variable manufacturing costs of $5,300 per bicycle and variable nonmanufacturing costs of $350 per bicycle If KCSB accepts the proposal, it would be able to save 5% of fixed manufacturing costs; fixed nonmanufacturing costs would be unchanged REQUIRED [Note: Round unit cost computations to the nearest cent] What is the difference in KCSB's monthly costs between accepting the proposal and rejecting the proposal? (Note: If the costs of accepting the proposal are less than the costs of rejecting it, enter the difference as a positive number; if the accept costs are more than the reject costs, enter the difference as a negative number.) Submit AnrTries 0/10

Answers

Computation of monthly expenses if proposal is rejected Expenses Variable manufacturing cost (A No. of Cost per pc Total Cost

.

Similar Solved Questions

1 answer
Leaf shape and leaf pubescence affect energy balance due to their effect on (choose any/all that...
Leaf shape and leaf pubescence affect energy balance due to their effect on (choose any/all that apply) A) radiant heat input B) Metabolic heat loss C) sensible heat exchange D) the leaf boundary layer E) stomatal conductance...
1 answer
A) Create an abstract class Student. The class contains fields for student Id number, name, and...
a) Create an abstract class Student. The class contains fields for student Id number, name, and tuition. Includes a constructor that requires parameters for the ID number and name. Include get and set method for each field; setTuition() method is abstract. b) The Student class should throw an excep...
1 answer
What different resistances can be obtained by using two 2.0-Ω resistors and one 4.0-Ω resistor? You...
What different resistances can be obtained by using two 2.0-Ω resistors and one 4.0-Ω resistor? You must use all three of them in each possible combination....
1 answer
In a test of H_0: mu - 100 against H_a: mu < > 100, the sample...
In a test of H_0: mu - 100 against H_a: mu < > 100, the sample data yielded the test statistic z--2.17. Find the p- value for the test. Here ">" stands for "not equal". O 0.015 O 0.485 0.03...
1 answer
Multiple Choice Question 145 Concord Consulting started the year with total assets of $58400 and total...
Multiple Choice Question 145 Concord Consulting started the year with total assets of $58400 and total liabilities of $14700. During the year, the business recorded $4900 in consulting revenues and $30900 in expenses Concord made an additional investment of $9100 and withdrew cash of $15000 during t...
1 answer
Given F(x, y) = (x²y3, xy). (a) Determine if F is conservative. If yes, find the...
Given F(x, y) = (x²y3, xy). (a) Determine if F is conservative. If yes, find the scalar potential. (b) Evaluate F.dr where is the path defined parametrically by r(t) = (13 – 2t, t3 + 2t) e/F c for 0 < t < 1....
1 answer
8) A) Solve by factoring (you will also need to use the quadratic formula to get...
8) A) Solve by factoring (you will also need to use the quadratic formula to get the complex solutions): T3 - 27 = 0. B) Check by plugging answers into (factored) equation. 9) Graph: x= y2 + 6. Label vertex and x- intercept....
1 answer
In the molecule H2S (C2v) , What is the symmetry label (irrecudible representation label) for the...
In the molecule H2S (C2v) , What is the symmetry label (irrecudible representation label) for the 3pz orbital of the central S atom? (please show all work)...
1 answer
Question 2: There are two data classes "+" and "-". The training set is shown in...
Question 2: There are two data classes "+" and "-". The training set is shown in Table 4.2 as follows. Please compute the entropy of al. (hint: compute the entropy of the case al =T, and the entropy of the case al = F; then, the entropy of al is the weighted average entropy of the tw...
1 answer
Part II: Draw the structure of the major product for each of the following reactions: (a)...
Part II: Draw the structure of the major product for each of the following reactions: (a) 1)LiAll a n 2 OH 2) H30+ OH OH (b) HỌC-C=0 + H2O H30+ - CH2 c -0+1 & HBV H2 0 1 Hac 1) Anhydrous ether MgBr 2) H30* H + KOH Yo + ok tho...
1 answer
Nan Nenu contents Grades Reservations Course Contents Backup 1 Question OS Done Out in: od 002:00...
Nan Nenu contents Grades Reservations Course Contents Backup 1 Question OS Done Out in: od 002:00 ou are planning to cross a river by a small motor boat. The speed of your boat is v = 2.93 m/s in still water. At which angle a with respect to the perpendicular crossing direction do you need to aim yo...
1 answer
325 mL of a 0.0700M solution of sodium hydroxide reacts with 75.0 mL of a 0.115...
325 mL of a 0.0700M solution of sodium hydroxide reacts with 75.0 mL of a 0.115 M solution of cobalt (III) sulfate. What mass (in g) of cobalt (III) hydroxide( MM = 109.96) is formed assuming the reaction went to completion?             &n...
1 answer
I have a problem with the following task: Show that here are no monotonously growing runtime func...
I have a problem with the following task: Show that here are no monotonously growing runtime functions f, g : N → N, so that f = o(g) and f = ω(g)....
1 answer
Mechanical Design Al. Sketch a free-body diagram of each element in the figure. Compute the magnitude...
Mechanical Design Al. Sketch a free-body diagram of each element in the figure. Compute the magnitude and direction of each force including reaction forces, using the known equilibrium conditions. F 300 lb 200 N 50 mm 60° 50 mm 50 mm 50 mm...
1 answer
2) What is the product of the following reaction? 1) KOH 2) ethyl bromide 3) NH...
2) What is the product of the following reaction? 1) KOH 2) ethyl bromide 3) NH NH2. ethanol reflux a) b) 11 c) III d) IV...
1 answer
Find the gcd for the following two problems; use the pseudo code. int main GCD (a,...
Find the gcd for the following two problems; use the pseudo code. int main GCD (a, b) {int gcd =0; if (a <= 0) OR (b < = 0) return gcd; if (b > a) return gcd; r1 = a; r2 = b; r = mod(r1, r2); while r > 0 {r1 = r2; r2 = r; r = mod (r1, r2):} if (r == 0) {gcd = r2;}//safety return gcd;}...
1 answer
9. -10 points My Notes Ask Your Teacher The Leyden jar, invented by chance in 1746,...
9. -10 points My Notes Ask Your Teacher The Leyden jar, invented by chance in 1746, was one of the earliest types of capacitors (see the figure below), made by covering the inner and outer surfaces of a glass jar with conducting layers (for example, aluminum foil). It is a good approximation to trea...
1 answer
Assignment #4 40 70 1. The graph drawn above is related to the Harris-Todaro model of...
Assignment #4 40 70 1. The graph drawn above is related to the Harris-Todaro model of rural to urban migration. The curve RR' is the demand curve for rural labor and the curve UU' is the demand curve for urban labor. These demand curves show the marginal productivity of labor on the vertical...