Question

US IS Kamel Accounting.be Bref Exercise 20-5 Petrin masih beras that for $59.37 Productions are arabend.54 c ha parri n g them andam w ake to show Work for this question

Answer 1

Answer-1-

	Sell Unfinished	Process Further	Net Income Increase (Decrease)
	In $	In $	In $
Sale price per unit	59.37	70.62	11.25
Cost per Unit
- Variable cost	37.59	43.23	-5.64
- Fixed cost	9.54	9.54	0
Total	47.13	52.77	-5.64
Net Income per unit	12.24	17.85	5.61
As net income per unit increases by $5.61 per unit if finished book cases are sold ,hence book cases should processed further.

Numbers are not so clear in picture but else i have tried my best.

Answer-2-

Net Income Make Buy Increase (Decrease) Direct materials Direct labor Variable manufacturing costs Fixed manufacturing costs Purchase price $30,200 $0 $30,200 $31,844 $31,844 $0 $44,800 $0 $44,800 $77,200 $57,900 $0 $170,898 $184,044 $228,798 $19,300 (S170,898) (S44,754) Total cost

Wilma Company will incur $44,754 as additional cost if the company purchase the switches.

Net Income Make Buy Increase (Decrease) Total Cost Opportunity Cost Total Cost $184,044 $228,798 (S44,754) $49,014 $4,260 $49,014 $0 $233,058 $228,798

Yes the answer is correct. The analysis shows that net income will be increased by $4,260