Wixis cabinets makes custom wooden cabinets for high-end stereo systems from specialty woods. the company uses a job-order costing system. the capacity of the plant is determined by the capacity of its constraint, which is time on the automated bandsaw that makes finely beveled cuts in wood according to the preprogrammed specifications of each cabinet. the bandsaw can operate up to 180 hours per month. the estimated total manufacturing overhead cost at capacity is $14,760 per month. the company bases its predetermined overhead rate on capacity, so its predetermined overhead rate is $82 per hour of bandsaw use. the results of a recent month’s operations appear below: sales $ 43,740 beginning inventories $ 0 ending inventories $ 0 direct materials $ 5,350 direct labor $ 8,860 manufacturing overhead incurred $ 14,760 selling and administrative expense $ 8,180 actual hours of bandsaw use 150 required: 1-a. prepare an income statement that records the cost of unused capacity on the income statement as a period expense. 1-b. how much of the cost of unused capacity can be shown on the income statement as a period expense?

Is exploiting a distinctive competence or improving efficiency for competitive advantage. (a) cooptation (b) coalition (c) competitive intelligence (d) competitive aggression (e) smoothing

Abank provides its customers mobile applications that significantly simplify traditional banking activities. for example, a customer can use a smartphone to take a picture of a check and electronically deposit into an account. this unique service demonstrates the bank’s desire to practice which one of porter’s strategies?

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?