case study

Part E: Relevant Cost/Sell or Process Further Farrugia Corporation produces two average products, A and B, from a accepted input. Average artefact A can be added candy into end artefact X. Average artefact B can be added candy into end artefact Y. The accepted ascribe is purchased in batches that amount $36 anniversary and the amount of processing a accumulation to aftermath average articles A and B is $15. Average artefact A can be awash as is for $21 or candy added for $14 to accomplish end artefact X that is awash for $32. Average artefact B can be awash as is for $44 or candy added for $28 to accomplish end artefact Y that is awash for $64. Required: a. Assuming that no alternative costs are complex in processing potatoes or in affairs products, how abundant money does the aggregation accomplish from processing one accumulation of the accepted ascribe into the end articles X and Y? Show your work! b. Should anniversary of the average products, A and B, be awash as is or candy added into an end product? Explain. Part F: Relevant Cost/Dropping a Product The administration of Woznick Corporation has been anxious for some time with the banking achievement of its artefact V86O and has advised alternate it on several occasions. Data from the company's accounting arrangement arise below: Sales ................................................................ $150,000 Variable costs ............................................ $72,000 Fixed accomplishment costs ........................ $50,000 Fixed affairs and authoritative costs ...... $33,000 In the company's accounting arrangement all anchored costs of the aggregation are absolutely allocated to products. Added analysis has appear that $30,000 of the anchored accomplishment costs and $13,000 of the anchored affairs and authoritative costs are accidental if artefact V86O is discontinued. A. According to the company's accounting system, what is the net operating assets becoming by artefact V86O? B. What would be the aftereffect on the company's all-embracing net operating assets if artefact V86O were dropped?

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