Question

Problem 1-51 (Algo) Cost Data for Managerial Purposes-Finding Unknowns (LO 1-3) Rigney Manufacturing is a small components maker located in the upper midwest. The company specializes in aircraft turbine blades and focused its production around a single family of products. Recently, one of the new members of the company's board of directors suggested the company could increase its profitability by adding a second product line with an increase in the rent the company currently pays of only 10 percent. 25 points Before the board member could show her analysis, she had to resign, because of a conflict of interest. She left behind the incomplete spreadsheet below apologizing that she had neglected to save the full version. She suggested that you could complete the analysis based on what information was included Required: Fill in the blank cells. (Enter all amounts as positive values.) RIGNEY MANUFACTURING Projected Income Statement For One Quarter Status Quo % Increase Alternative: Single Product (Decrease) Two Products Difference $ 39,358 Sales revenue Costs Material S 80.000 22 N Labor 11 245 2595 41.000 11 500 13225 151 301 11.245 Depreciation Utilities Other Total costs Operating profil 4300 154,100 $ IS 13,000

Answer 1

solution RIGNED MANUFACTURING Project Income statement S hur one Quarter shalles aus & Diereare Single Product Decrease Alternatiree The Producte Difference Sales 3 Costs Revenue $1574321 1251 $ 196790 $39358 Lex Material 880000 22% [89 7600] Is 17600) Labour ($865o 130% $11245 $2595 Rent 41000 110% (s AS 100 [$41001 Repreudin & 11500 157. &13225 $1725 I utilities $8650 | 30% $11245 $2595 others 4300 125% 185345 1075 Total costs $154100 19.277 ($ 18 3490 | 1$29690] Operating [#3332 $10000 9668 Sales Revenes Total cost operating profit Single Product ISA10 & 3332 -$157132 091537432 The produit - $ 183790 + $ 13000 t ² 8 183790 $196. 70