The Controller of Nip-It-In-The-Bud Inc

question 129

Essay

The Controller of Nip-it-in-the-Bud Inc. has studied the possibility of implementing a JIT production system. The annual incremental retooling costs of the JIT system is projected to be about $67,000 however, the new system will lower insurance costs by $10,000 and storage costs will drop by $20,000 a year as the company will be able to reuse warehouse space for other strategic purposes. In addition, material handling costs will drop by $10,000 a year and because of a resulting increase in quality and faster delivery, the company's contribution margin on the product will increase by $2.00 on annual sales of 20,000 units.
Required:
Calculate the net incremental benefit of the JIT system implementation.

Understand the links between lifestyle choices (diet, exercise, mindfulness practices) and stress management.

Understand the distinctions between different types of inventories and their presentation in financial statements.

Comprehend the purposes and functions of managerial accounting.

Recognize the applicability of managerial accounting across different types of organizations.

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Definitions:

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The process of asking a user for input by displaying a message or a question.

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