WQ5 (9 points in total) Pied Piper produces and sells 7,500…

WQ5 (9 points in total) Pied Piper produces and sells 7,500 PiperNets per year at a selling price of $100 each. Its current production equipment, purchased for $1,500,000 and with a five-year useful life, is only one year old. It has a terminal disposal value of $0 and is depreciated on a straight-line basis. The equipment has a current disposal price of $400,000. However, the emergence of a new molding technology has led Pied Piper to consider either upgrading or replacing the production equipment. The following table presents data for the two alternatives:     Replace Upgrade One-time equipment costs $4,500,000 $2,000,000 Variable Manufacturing cost per desk $50 $100 Remaining useful life of equipment (years) 4 4 Terminal disposal value of equipment $5,000 $0

WQ4 (6 points total) Shirou, LLC makes Saber Grails. The com…

WQ4 (6 points total) Shirou, LLC makes Saber Grails. The company has a total capital investment of $20,000,000 and requires at least an 11% return on investment. Additionally, the company requires a minimum markup on variable costs of 80%. The company expects to sell 400,000 Saber Grails. Expected costs for the next year are as follows: Variable manufacturing costs $7.50 per unit Variable marketing costs $4.25 per unit Fixed manufacturing costs $1,000,000 Fixed marketing costs $300,000 Other fixed costs $220,000  

WQ2 (15 points in total) Audien produces Circles, a special…

WQ2 (15 points in total) Audien produces Circles, a special LED hula hoop used by stage performers across the world. A Circles hoop sells for $4,025. The budgeted level of production to calculate the budgeted fixed manufacturing cost per unit is 800 units. Audien writes off any production-volume variance to cost of goods sold in the month in which it occurs. Audien has the following information for the first quarter of 2018:  

WQ1 (6 points) The Gem Theatre Co. has decided to analyze t…

WQ1 (6 points) The Gem Theatre Co. has decided to analyze the profitability of 5 new customers. It buys bottled water at $12 per case and sells to retail customers at a list price of $14.40 per case.   Data pertaining to the five customers are as follows:     Its five activities and their cost drivers are as follows:    i.   Customer-level operating income for customer P is $[a] ii.  Customer-level operating income for customer Q is $[b] iii. Customer-level operating income for customer T is $[c]