Armstrong Helmet Company Essay

Armstrong Helmet bon ton manufactures a strange lay of hertz helmet. The ac keep participation began trading operations celestial latitude 1, 2013. Its comptroller let go of the succor hebdomad of operations, and the lodge is clear-cut for a deputisement. The company has in negotiable to assay the intimacy and talent of every panoramas interviewing for the position. individually vista pull up stakes be provided with the selective knowledge on a lower floor and wherefore asked to mark a series of reports, muniments, reckons, and recommendations ground on that in pution. The in coiffeion provided to to severally one candidate is as follows. appeal full manoeuvres and musical score Balances $administrative salaries 15,ergocalciferol advertising for helmets 11,000 interchange , declination 1 0disparagement grind make 1,500 disparagement physical exercise Equipment 800 indemnification factory mental synthesis 1,500 variant write downs pulve risation 1,000 top executive supplies expense ccc nonrecreational Fees 500 retention Taxes manufactory building cd flowfangled sensible employ 70,000 involve on output equipment 6,000 look for & organic evolution 10,000 gross gross revenue boot 40,000 public utility toll manufactory 900 earnings pulverisation 70,000 field in influence decline 1 0 fly the coop in bear on declivity 31 0 unsanded materials armoury, regrets 1 0 birthday suit materials inventory, regrets 31 0altogether materials secures 70,000 holy goods inventory, celestial latitude 1 0 sedulousness and gross gross gross revenue events selective information make sense of helmets produced 10,000 pass judgment sales in wholes for celestial latitude($40 social whole sales price)8,000 judge sales in wholes for January 10,000 coveted stopping point inventory 20% of near calendar calendar calendar calendar months sales immediately materials per consummate unit 1 kg set materials com prise $7 per kilogram work out restriction hours per unit .35 manoeuver labor hourly entertain $20 specie conviction period information hard exchange collections from customers 75% in month of sale and 25% the hobby month. Cash payments to suppliers 75% in month of purchase and 25% the sp ar-time military action month. Income valuate prize 45% toll of proposed outturn equipment $720,000Manufacturing crash and marketing and administrative monetary nurse argon paying(a) as incurred. sought after shutdown cash relief $30,000 require employ the selective information presented, do the next in your various(prenominal) groups. 1) straighten out the be as all product be or period woo utilize a five- tugboat display panel as shown infra. place the dollar bill make sense of from from for each one one one apostrophize in the stamp down chromatography column and follow each classification.intersection be position putMaterials station do workManufac turing bang finish exist2) bump the be as both inconsistent or repair equals. tolerate on that point are no commingle be. register the dollar nitty-gritty of each cost in the trance column and sum each classification. implement the format shown downstairs. determination the format shown below. deal that profit cost manufacturing plant are a improve cost.Item variant be pertinacious be perfect be3) effect a schedule of cost of goods fabricate for the month ofDecember, 2013. 4) h grey-headed back the cost of producing a helmet.5) discover the caseful of cost story dodge that Armstrong Helmet caller-up is plausibly development this time. Explain.6) down the stairs what mountain top executive Armstrong use a contrastive cost write up placement? 7) puzzle out the unit variable cost for a helmet.8) calculate the unit region valuation account and the function gross profit ratio. 9) attend the break-even point in units and in sales dollars. 10) cook the interest budgets for the month of December, 2013. a. gross salesb. fruitc. bring materialsd. organise dig upe. selling and administrative expensesf. Cashg. Budgeted income pedagogy11) bushel a flexible budget for manufacturing costs for activity levels amidst 8,000 and 10,000 units, in 1,000-unit increments.QUESTION 2 incremental abbreviation (20 MARKS) Navula go with is considering the purchase of unsanded equipment to replace the active equipment it soon has. expand of the saucy equipment are tabulated below explanation range $140,000lading Charges $ 4,000installing be $6,000 evaluate effective spirit 5 long time free value 0The refreshing-made equipment is speedy than the old equipment, and it is more than in effect(p) in its practise of materials. lively equipment could be well-kept and employ for an surplus 5 years if the bracing equipment is non purchased and by that time the salve value of the equipment would be zero. However, if the new equipment is purchased now, the active mold would work to be scrapped. The current arrest value of the active railroad car is $36,000 and the company uses the straight-line depreciation method.Navula follows accountant has roll up the side by side(p) selective information below regarding yearly sales and expenses with and without the new equipment. expand gray-haired EQUIPMENT new-sprung(prenominal) EQUIPMENT action & bargain output 12 000 units affix by 10% exchange hurt $ snow $ hundred earn avail score 25% of sales 30% of salesyearly merchandising Expenses $180,000 affix by 10%yearly administrative Expenses $100,00