Question : 122. An unfinished desk produced for $36.00 and sold for $65. : 1233919

122. An unfinished desk is produced for $36.00 and sold for $65. An additional amount of $6.65 of processing can be added to the desk which will allow the company to sell the desk for $75. Provide a differential analysis for further processing. 

123. Delicious Cake Factory normally sells their specialty cake for $22. An offer to buy 100 cakes for $18 per cake was made by an organization hosting a national event in the city. The variable cost per cake is $12. A special decoration per cake will add another $1 to the cost. Determine the differential income or loss per cake from selling the cakes. 

124. The Koko Company produces their product at a total cost of $50 per unit. Of this amount $14 per unit is selling and administrative costs. The total variable cost is $38 per unit The desired profit is $20 per unit. Determine the mark up percentage on total cost. 

125. The Koko Company produces their product at a total cost of $50 per unit. Of this amount $14 per unit is selling and administrative costs. The total variable cost is $38 per unit The desired profit is $20 per unit. Determine the mark up percentage on product cost. 

126. The Koko Company produces their product at a total cost of $50 per unit. Of this amount $14 per unit is selling and administrative costs. The total variable cost is $38 per unit The desired profit is $20 per unit. Determine the mark up percentage on variable cost. 

127. Koko Company produces two products. Product A has a contribution margin of $20 and requires 4 machine hours. Product B has a contribution margin of $18 and requires 3 machine hours. Determine the most profitable product assuming the machine hours are the constraint. 

128. Bell Company is considering the disposal of equipment that is no longer needed for operations. The equipment originally cost $600,000 and accumulated depreciation to date totals $460,000. An offer has been received to lease the machine for its remaining useful life for a total of $290,000, after which the equipment will have no salvage value. The repair, insurance, and property tax expenses during the period of the lease are estimated at $75,800. Alternatively, the equipment can be sold through a broker for $230,000 less a 10% commission.Prepare a differential analysis report, dated June 15 of the current year, on whether the equipment should be leased or sold. 

129. Product J is one of the many products manufactured and sold by Goodstein Company. An income statement by product line for the past year indicated a net loss for Product J of $12,250. This net loss resulted from sales of $260,000, cost of goods sold of $186,500, and operating expenses of $85,750. It is estimated that 30% of the cost of goods sold represents fixed factory overhead costs and that 40% of the operating expense is fixed. If Product J is retained, the revenue, costs, and expenses are not expected to change significantly from those of the current year. However, because of the net loss, management is considering the elimination of the unprofitable endeavor. Because of the large number of products manufactured, the total fixed costs and expenses are not expected to decline significantly if Product J is discontinued.Prepare a differential analysis report, dated February 8 of the current year, on the proposal to discontinue Product J. 

130. Pnok Company has been purchasing a component, Part Q, for $18.90 a unit. Pnok is currently operating at 70% of capacity and no significant increase in production is anticipated in the near future. The cost of manufacturing a unit of Part Q, determined by absorption costing methods, is estimated as follows: 

Direct materials$11.25

Direct labor4.50

Variable factory overhead1.12

Fixed factory overhead    3.15

Total$20.02

Prepare a differential analysis report, dated March 12 of the current year, on the decision to make or buy Part Q.