Reference no: EM132699697
Question - Carlos Cavalas, the manager of Echo Products' Brazilian Division, is trying to set the production schedule for the last quarter of the year. The Brazilian Division had planned to sell 67,870 units during the year, but by September 30 only the following activity had been reported:
Units
Inventory, January 1 0
Production 72,300
Sales 61,700
Inventory, September 30 10,600
The division can rent warehouse space to store up to 30,700 units. The minimum inventory level that the division should carry is 1,500 units. Mr. Cavalas is aware that production must be at least 6,360 units per quarter in order to retain a nucleus of key employees. Maximum production capacity is 44,400 units per quarter.
Demand has been soft, and the sales forecast for the last quarter is only 20,300 units. Due to the nature of the division's operations, fixed manufacturing overhead is a major element of product cost.
Required - Assume that the division is using absorption costing and that the divisional manager is given an annual bonus based on divisional operating income. If Mr. Cavalas wants to maximize his division's operating income for the year, how many units should be scheduled for production during the last quarter?
|
Discusses broad context of risk and investigative forensics
: Discusses broad context of risk and investigative forensics. Part of risk management is to understand when things go wrong,
|
|
How much is diluted earnings per share
: On 6/1/20, we issued 24,000 shares of $100 par value, 6% cumulative preferred stock. How much is Diluted Earnings Per Share
|
|
How much gross profit would be recognized
: Pool Contractors (PC) entered into a contract to build a solar heated swimming complex for $1,800,000. How much gross profit would be recognized
|
|
System testing and verification
: The system testing for newly developed Airport Passenger Processing System was done. Now it is time for the User Acceptance Testing.
|
|
How many units should be scheduled for production
: If Cavalas wants to maximize his division's operating income for the year, how many units should be scheduled for production during the last quarter
|
|
What was her total percentage return on the investment
: Paula purchased stock with an initial share price of $30, and sold it when the share price was $60. What was her total percentage return on the investment
|
|
Crazy epidemic-final project draft and main version
: Currently, the world is going through a crazy epidemic (COVID-19). Design and develop an interactive solution. Explain the challenge you encounter.
|
|
Draft any required journal entries at january
: Carla Vista Ltd. did not take delivery of any oranges, and the market price for an orange was $0.35. Draft any required journal entries at January
|
|
Provide the appropriate prior year correcting entry
: Depreciation for 2019 has not yet been recorded. Provide the appropriate prior year correcting entry. The company's tax rate is 30%
|