Chat with us, powered by LiveChat Quinton Corporation produces and sells two types o - Writemia

Quinton Corporation produces and sells two types o

Quinton Corporation produces and sells two types of chili: 1-Alarm and 5-Alarm. Operating performance for the most recent quarter is: Management is puzzled by these results because they spent $ 120,000 on advertising 5-Alarm Chili last quarter (included in selling and administrative costs) and increased sales by 50,000 jars. The accountant investigated the cost structure and discovered the following about the 5-Alarm Chili. Cost of goods sold consists of unit-related, batch-related, product-sustaining, and allocated facility-sustaining costs. Unit-related costs are $ 0.75 per jar, batch-related costs are $ 800 per batch (batch size is 2,500 jars), and ongoing research and development costs are $ 10,000 per quarter. Facility-sustaining costs of $ 400,000 per quarter are allocated to the product lines based on the number of units produced. Selling and administrative costs consist of unit-related, product-sustaining, and facility sustaining costs. Unit-related costs are $ 0.15 per jar. Advertising is the only product-sustaining cost and facility-sustaining costs of $ 80,000 per quarter are allocated to the product lines based on the number of units sold. Required A. Should the 5-Alarm Chili line be discontinued? Why? B. What other factors should Quinton consider before making this decision?

Do you need an answer to this or any other questions?

About Writemia

We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.

How It Works

To make an Order you only need to click on “Place Order” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.

Are there Discounts?

All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.

Hire a tutor today CLICK HERE to make your first order