90.2K

Verified Solution

Link Copied!

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: Units of XT15 produced and sold Selling price Direct materials (square feet) Direct material costs per square foot Manufacturing capacity in units of XT15 Total conversion costs Conversion costs per unit of capacity Selling and customer-service capacity (customers) Total selling and customer-service costs Selling and customer-service capacity cost per customer 2019 54,000 $400 154,000 $51 63,500 $866,250 $102 150 $2,295,000 $15,300 2020 56,200 $470 157,750 $59 63,500 $836,850 $108 150 $2,388,750 $15,925 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.

3) Following a strategy of product differentiation, Izzy's Limited Company makes a high-end Appliance, XI15. 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. 3) Following a strategy of product differentiation, Izry's timited Company makes a high-end Appliance, XT15. Izry'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 XI15 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 timited had 180 customers in 2019 and 185 customers in 2020. Compute the dollar amount (+/) of the revenue effect of the price-recovery component

Answer & Explanation Solved by verified expert

See Answer