Should walters company sell their products in the

Reference no: EM13578324

Walters Company is considering producing 120,000 pounds of paperclips and 140,000 pounds of staples each month from their current production of grade A and grade B wiring. The following are the expenditures to date:
Jan. 1 $100,000 Bulk steel purchase
Jan. 2 - Feb. 15 $150,000 Cost to melt steel
Feb. 16 - Mar. 31 $200,000 Cost to mold steel into wires, polish wires and
wrap around large bolts
April 1 $3.00/pound market price for grade A wire
$4.00/pound market price for grade B wire
Grade A wire requires $450,000 of monthly variable costs to process into staples, which can be sold in the market on 5/1/XX for $7.00 per pound. Grade B wire requires $600,000 of monthly variable costs to process into paperclips, which can be sold in the market on 5/1/XX for $8.00 per pound.
Required:
1) Should Walters Company sell their products in the marketplace on April 1st or on May 1st? What recommendation would you make to Walters Company?

2) What is the incremental monthly revenue (loss) for staples and paperclips?

3) How should the $450,000 of joint costs be accounted for in the further processing decision?

Reference no: EM13578324

Questions Cloud

Leslie sporting goods is a locally owned store that : nbspleslie sporting goods is a locally owned store that specializes in printing team jerseys. the majority of its

Pay 15 deposit upfront and pay the balance over 2 years in : questionpart a you have been offered the choice of 3 prizesprize 1 15000 cash payable immediatelyprize 2 2 yearly

Stanley clipper now retired owns the campus barber shop he : stanley clipper now retired owns the campus barber shop. he employs 5 barbers and pays each a base rate of 500 a month.

The population of iq scores forms a normal distribution : the population of iq scores forms a normal distribution with a mean of micro 100 and a standard deviation of ? 15.

Should walters company sell their products in the : walters company is considering producing 120000 pounds of paperclips and 140000 pounds of staples each month from their

Project risk and procurement management word length 2500 : word length 2500 words do not exceed word limit. do not include references in the word count. ltbrgt ltbrgta proactive

What is a chi-squared test provide a fully referenced : question 1 what is a chi-squared test? provide a fully referenced explanation.question 2 provide a brief example on a

Use descriptive statistics to summarize the following data : leverocks waterfront steakhouse in maderia beach florida uses a questionnaire to ask customers how they rate the server

Manzano bank has two operating departments branches and : manzano bank has two operating departments branches and electronic and three service departments processing

User Account

All Pages