The estimated total setup cost for the flag displays for the coming yea r is 1. If Liberty Celebrations does not maintain a safety stock, the estimat ed total carrying cost for the flag displays for the coming year is 100000 / 60 = 1667 units per run Russell. Company. has. the. following. projected. account. balances. for. Ju ne. 30,. 20X5: Accounts payable $ 40,000 Sales $ 800,000 Accounts rec eivable $ 100,000 Capital stock $ 400,000 Depreciation, factory $ 24,00 0 Retained earnings? Inventories( 5 / 31 & 6 / 30) $ 180,000 Cash $ 56,0 00 Direct materials used $ 200,000 Equipment, net $ 240,000 Office sa laries $ 80,000 Buildings, net $ 400,000 Insurance, factory $ 4,000 Utili ties, factory $ 16,000 Plant wages $ 140,000 Selling expenses $ 60,000 Bonds payable $ 160,000 Maintenance, factory $ 28,000 Required a) Prepare. a. budgeted. income. statement. for. June. 20X5. b) Prepare. a. budgeted. balance. sheet. as. of. June. 30,. 20X5.( Points: 25) 2.( TCO 5) Steven ' s Medical Equipment Company manufactures hosp ital beds. Its most popular model, Deluxe, sells for $ 5,000. It has varia ble costs totaling $ 2,800 and fixed costs of $ 1,000 per unit, based on a n average production run of 5,000 units. It normally has four producti on runs a year, with $ 600,000 in setup costs each time. Plant capacity can handle up to six runs a year for a total of 30,000 beds. A competit or is introducing a new hospital bed similar to Deluxe that will ……..?( Points: 25)
2.( TCO 5) Robert ' s Medical Equipment Company manufactures hosp ital beds. Its most popular model, Deluxe, sells for $ 5,000. It has varia ble costs totaling $ 2,800 and fixed costs of $ 1,000 per unit, based on a n average production run of 5,000 units. It normally has four producti on runs a year, with $ 400,000 in setup costs each time. Plant capacity can handle up to six runs a year for a total of 30,000 beds. A competitor is introducing a new hospital bed similar to Deluxe that will sell for $ 4,000. Management believes it must lower the price to c ompete. Marketing believes that the new price will increase sales by 2 5 % a year. The plant manager thinks that production can increase by 2 5 % with the same level of fixed costs. The company currently sells all the Deluxe beds it can produce.