Homework Answers
Ans. First, we have to find indifference point. At indifference point, total cost under both the machines will be equal. Therefore, Indifference point = Differential Fixed Cost / Differential Variable Cost = ($15,000-$5,000) / ($5-$1) = 2,500 units
| Level of Activity | Machine to be Used |
| Less than 2,500 units | Machine "A" |
| 2,500 units | Either Machine "A" or Machine "B" |
| Less than 2,500 units | Machine "B" |
Therefore, Machine "A" could be selected if the production is less than 2,500 units.
Add Answer to:
كلية الامارات التكنولوجيا م Emirats College of Technology Group Work 1 Question 2: (2 Marks) the...
كلية الإمارات للتكنولوجيا Emirates College of Technology Yer TCHACARD (2x4-Marks Group Work # (2) Question (1):...
كلية الإمارات للتكنولوجيا Emirates College of Technology Yer TCHACARD (2x4-Marks Group Work # (2) Question (1): Consider the following facts provided for ALFA Corporation: Bank Debt information: - rd. Interest rate on bank loans 12 % - T: Annual Tax rate 20% - • - Preferred stock information: D : Annual Dividends on preferred stock $ 15 P: Issuing price of ALFA Corporation preferred Stock $ 120 FC: Flotation cost on issue of preferred stock/per share $ 3 Common Stock...
ad كلية الإمارات للتكنولوجيا Emirates College of Technology 108/2011 Mini Case Study Group Work #1 You...
ad كلية الإمارات للتكنولوجيا Emirates College of Technology 108/2011 Mini Case Study Group Work #1 You have recently been appointed as a compensation manager in your company. In line with the HR department's vision to move gradually from a job-based to a more person-based compensation structure, the HR Director asks you to develop a comprehensive plan where you will have to specify the followings: 1. To identify the major differences between the two compensation systems Handout 1 tion to Compensation...
Group work # Question 2: 6 Marks) Santa's Toys Manufacturing's sales slumped badly in 2008 due...
Group work # Question 2: 6 Marks) Santa's Toys Manufacturing's sales slumped badly in 2008 due to so many people purchasing gifts online. The company's income statement showed the following results from selling 500,000 units of product: net sales $2,125,000; total costs and expenses $2,500,000; and net loss $375,000. Costs and expenses consisted of the following: Variable $2,000,000 $1,300,000 S 700,000 Cost of goods sold Selling expenses Administrative expenses 50,000 200,000 300,000 50,000 150,000 2500,000 S500,000 $1000,000 Management is considering...
Group work # Question 2 (6 Marks) Santa's Toys Manufacturing's sales slumped badly in 2008 due...
Group work # Question 2 (6 Marks) Santa's Toys Manufacturing's sales slumped badly in 2008 due to so many people purchasing gifts online. The company's income statement showed the following results from selling 500,000 units of product: net sales $2,125,000; total costs and expenses $2,500,000; and net loss $375,000. Costs and expenses consisted of the following: 000,000 ariable 200,000 Fixed Cost of goods sold Selling expenses S1,300,000 S 700,000 150,000 Administrative expenses 300,000 150,000 150,000 2.500,000 SL500,000 $1000,000 50,000 Management...
Group work # Question 2 (6 Marks) Santa's Toys Manufacturing's sales slumped badly in 2008 due...
Group work # Question 2 (6 Marks) Santa's Toys Manufacturing's sales slumped badly in 2008 due to so many people purchasing gifts online. The company's income statement showed the following results from selling 500,000 units of product: net sales $2,125,000; total costs and expenses $2,500,000; and net loss $375,000. Costs and expenses consisted of the following: 000,000 ariable 200,000 Fixed Cost of goods sold Selling expenses S1,300,000 S 700,000 150,000 Administrative expenses 300,000 150,000 150,000 2.500,000 SL500,000 $1000,000 50,000 Management...
question # 2: (5marks: 1 mark for each closing entry, 2 marks for the secou closing...
question # 2: (5marks: 1 mark for each closing entry, 2 marks for the secou closing entry) At December 31, the account balances after adjustments for Wabel Company are as follows: Bank Account Credit Debit S 50 000 2250 3000 1 500 27 000 Prepaid Insurance Account Receivable Supplies Equipment Accumulated Dep. - Equipment Account Payable Notes Payable Uneared Revenue Capital Drawings Sales Revenue Interest Expense Dep. Expense Wages Expense Utilities Expenses $ 5500 2000 12500 5500 44 450 1000...
Question 4 (25 marks) The Rapoo Technology Company Ltd (Rapoo) manufactures and sells a hydraulic machine...
Question 4 (25 marks) The Rapoo Technology Company Ltd (Rapoo) manufactures and sells a hydraulic machine component SB1038. Rapoo sells 500,000 units of SB1038 to the main hydraulic machine manufacturers in China. Rapoo has a capacity of 300,000 machine-hours and can produce two units per machine-hour. SB1038's contribution margin per unit is $14. Rapoo sells only 500,000 units because 100,000 units (20% of the good units) need to be reworked. It takes l machine-hour to rework two units, so 50,000...
Question 2 [20 Marks] Kanye &Jwaneng Enterprises intends buying a new machine and the following details relate...
Question 2 [20 Marks] Kanye &Jwaneng Enterprises intends buying a new machine and the following details relate to the machine. Purchase price P300,000 Expected economic life 5 years Scrap vale 0 Minimum required rate of return Expected net cash inflow End of year 1 P40,000 با دبا P80,000 P150,000 P90,000 P60,000 حه ي Depreciation is on fixed installment method. (a). Calculate payback period for both machines (answer must be expressed in years and months. (b). Outline two advantages and three...
Question 2 (22 marks) Silver Industries Limited produces and sells sweaters under the "Silver" label. The...
Question 2 (22 marks) Silver Industries Limited produces and sells sweaters under the "Silver" label. The company has provided the following data: Beginning inventory 0 Units produced 160,000 Units sold 148,500 Net operating income under variable costing is $2,800,000. Fixed manufacturing overhead incurred for the above production process totaled $864,000. Required: 1, Compute the units of ending inventory (5 marks). 2. Compute the manufacturing overhead per unit absorbed in the ending inventory. (5 marks) 3. Use vertical 3 rows schedule...
Emirates College of Technology We repure ar l a Group Work #2 Question : bank reconciliation...
Emirates College of Technology We repure ar l a Group Work #2 Question : bank reconciliation statement RED TECH developed the following information in recording its bank statement for the month of March Balance per books March 31 Balance per bank statement March 31 $ 8,905 $10,900 (1) Checks written in March but still outstanding $4,000. OU (2) Checks written in February but still outstanding $2,800. (3) Deposits of March 30 and 31 not yet recorded by bank $5,200. (4)...
كلية الإمارات للتكنولوجيا Emirates College of Technology Yer TCHACARD (2x4-Marks Group Work # (2) Question (1): Consider the following facts provided for ALFA Corporation: Bank Debt information: - rd. Interest rate on bank loans 12 % - T: Annual Tax rate 20% - • - Preferred stock information: D : Annual Dividends on preferred stock $ 15 P: Issuing price of ALFA Corporation preferred Stock $ 120 FC: Flotation cost on issue of preferred stock/per share $ 3 Common Stock...
ad كلية الإمارات للتكنولوجيا Emirates College of Technology 108/2011 Mini Case Study Group Work #1 You have recently been appointed as a compensation manager in your company. In line with the HR department's vision to move gradually from a job-based to a more person-based compensation structure, the HR Director asks you to develop a comprehensive plan where you will have to specify the followings: 1. To identify the major differences between the two compensation systems Handout 1 tion to Compensation...
Group work # Question 2: 6 Marks) Santa's Toys Manufacturing's sales slumped badly in 2008 due to so many people purchasing gifts online. The company's income statement showed the following results from selling 500,000 units of product: net sales $2,125,000; total costs and expenses $2,500,000; and net loss $375,000. Costs and expenses consisted of the following: Variable $2,000,000 $1,300,000 S 700,000 Cost of goods sold Selling expenses Administrative expenses 50,000 200,000 300,000 50,000 150,000 2500,000 S500,000 $1000,000 Management is considering...
Group work # Question 2 (6 Marks) Santa's Toys Manufacturing's sales slumped badly in 2008 due to so many people purchasing gifts online. The company's income statement showed the following results from selling 500,000 units of product: net sales $2,125,000; total costs and expenses $2,500,000; and net loss $375,000. Costs and expenses consisted of the following: 000,000 ariable 200,000 Fixed Cost of goods sold Selling expenses S1,300,000 S 700,000 150,000 Administrative expenses 300,000 150,000 150,000 2.500,000 SL500,000 $1000,000 50,000 Management...
Group work # Question 2 (6 Marks) Santa's Toys Manufacturing's sales slumped badly in 2008 due to so many people purchasing gifts online. The company's income statement showed the following results from selling 500,000 units of product: net sales $2,125,000; total costs and expenses $2,500,000; and net loss $375,000. Costs and expenses consisted of the following: 000,000 ariable 200,000 Fixed Cost of goods sold Selling expenses S1,300,000 S 700,000 150,000 Administrative expenses 300,000 150,000 150,000 2.500,000 SL500,000 $1000,000 50,000 Management...
question # 2: (5marks: 1 mark for each closing entry, 2 marks for the secou closing entry) At December 31, the account balances after adjustments for Wabel Company are as follows: Bank Account Credit Debit S 50 000 2250 3000 1 500 27 000 Prepaid Insurance Account Receivable Supplies Equipment Accumulated Dep. - Equipment Account Payable Notes Payable Uneared Revenue Capital Drawings Sales Revenue Interest Expense Dep. Expense Wages Expense Utilities Expenses $ 5500 2000 12500 5500 44 450 1000...
Question 4 (25 marks) The Rapoo Technology Company Ltd (Rapoo) manufactures and sells a hydraulic machine component SB1038. Rapoo sells 500,000 units of SB1038 to the main hydraulic machine manufacturers in China. Rapoo has a capacity of 300,000 machine-hours and can produce two units per machine-hour. SB1038's contribution margin per unit is $14. Rapoo sells only 500,000 units because 100,000 units (20% of the good units) need to be reworked. It takes l machine-hour to rework two units, so 50,000...
Question 2 [20 Marks] Kanye &Jwaneng Enterprises intends buying a new machine and the following details relate to the machine. Purchase price P300,000 Expected economic life 5 years Scrap vale 0 Minimum required rate of return Expected net cash inflow End of year 1 P40,000 با دبا P80,000 P150,000 P90,000 P60,000 حه ي Depreciation is on fixed installment method. (a). Calculate payback period for both machines (answer must be expressed in years and months. (b). Outline two advantages and three...
Question 2 (22 marks) Silver Industries Limited produces and sells sweaters under the "Silver" label. The company has provided the following data: Beginning inventory 0 Units produced 160,000 Units sold 148,500 Net operating income under variable costing is $2,800,000. Fixed manufacturing overhead incurred for the above production process totaled $864,000. Required: 1, Compute the units of ending inventory (5 marks). 2. Compute the manufacturing overhead per unit absorbed in the ending inventory. (5 marks) 3. Use vertical 3 rows schedule...
Emirates College of Technology We repure ar l a Group Work #2 Question : bank reconciliation statement RED TECH developed the following information in recording its bank statement for the month of March Balance per books March 31 Balance per bank statement March 31 $ 8,905 $10,900 (1) Checks written in March but still outstanding $4,000. OU (2) Checks written in February but still outstanding $2,800. (3) Deposits of March 30 and 31 not yet recorded by bank $5,200. (4)...
Most questions answered within 3 hours.
-
M1=7/Hr ==> M2=6/Hr ==> M3=9/Hr ==> M4=8/Hr ==>
Demand = 10/Hr
The diagram shows the hourly...
asked 39 seconds from now -
Ten young adults living in California rated the taste of a newly
developed sushi pizza topped...
asked 3 minutes ago -
(Cash Flow Statement) Consider the following potential events
that might have taken place at Global Conglomerate...
asked 5 minutes ago -
What kinds of transitions form the basis for AA and AE?
Can the detector differentiate wavelengths...
asked 12 minutes ago -
Twenty percent of all telephones of a certain type are submitted
for service while under warranty....
asked 13 minutes ago -
A
roller coaster cart of mass 312 kg travels around a horizontal
curve of radius 41.3...
asked 13 minutes ago -
If I have a function in python, say show(B), how would I code it
so that...
asked 14 minutes ago -
Size properly the power supply that you need to purchase if you
have the following equipment....
asked 15 minutes ago -
Is voter turnout in Texas a problem? If so how can this issue be
addressed to...
asked 21 minutes ago -
Assume we have these two classes. Note that they are in
separate packages. If the code...
asked 33 minutes ago -
In 250 words, Which theory made the most sense to you in
explaining crimes in a...
asked 32 minutes ago -
An undiscovered planet, many light-years from Earth, has one
moon, which has a nearly circular periodic...
asked 33 minutes ago