1) Foley Products Company makes a household appliance with model number X500. The goal for...
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Accounting
1) Foley Products Company makes a household appliance with model number X500. The goal for 2020 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 15% from 2019 to 2020 . The following additional data are available for 2019 and 2020: Compute operating income for 2019. 2) Trusted Products Company makes a household appliance with model number L800. The goal for 2020 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 L800 units that can be produced. The industry market size for appliances increased 15\% from 2019 to 2020. The following additional data are available for 2019 and 2020: Compute the dollar amount (+/) of the revenue effect of the growth component. 3) Following a strategy of product differentiation, Izzy's Limited Company makes a high-end Appliance, XT15. Izzy's Limited presents the following data for the years 2019 and 2020: Izzy's Limited 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. Izzy's Limited had 180 customers in 2019 and 185 customers in 2020. Compute the dollar amount (+/-) of the revenue effect of the price-recovery component


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