Solution:
A) Variable cost
Because variable cost is only the element which is not equal in both alternative.
When sales amount is equal it does not effect the decision of investor. Further , if fixed cost is also same in all condition that it will also not effect the decision of investor
W ill pulkel, Itselt, will NOT be graded. 11. A company is considering the following alternatives:...
Multiple Choice Question 39 Crane Company is considering the following alternatives: Revenues Variable costs Fixed costs Alternative A $30000 18000 10000 no Alternative B 544000 18000 16000 What is the incremental profit? $0 58000 $2000 $6000
Sheffield Corp. is considering the following alternatives: Alternative A Alternative B Revenues $38000 $52000 Variable costs 22800 22800 Fixed costs 10000 16000 What is the incremental profit?
Marigold Corp. is considering the following alternatives: Alternative A $30000 18000 10000 Alternative B $46000 18000 16000 Revenues Variable costs Fixed costs What is the incremental profit? $10000 $2000 O $6000
QUESTION 5 (20 points) A firm is considering two capacity alternatives: Alternative A and Alternative B. Alternative A would have an annual fixed cost of $40,000 and variable costs of $400 per unit. Alternative B would have annual fixed costs of $60,000 and variable costs of $200 per unit. Revenue per unit is expected to be $1000 per unit for Alternative A and $1050 for Alternative B. Complete the following parts using Excel. a) Create a graph for each alternative...
engineering economy QUESTION 2 The following mutually exclusive investment alternatives have been presented to you A B C E Capital investment $60,000 $90,000 $40,000 $30,000 $70,000 Annual expenses $30,000 $40,000 $25,000 $15,000 $35,000 Annual revenues $50,000 $52,000 $38,000 $28,000 $45,000 MV at EOY 10 $15,000 $15,000 $10,000 $10,000 $15,000 IRR 31.5 % 7.4 % 30.8 % 42.5 % 9.2 % The life span of all alternatives is 10 years.. Using a MARR of 15 % per year, what is the...
4. Rockett Corporation is considering two alternatives that are code-named M and N. Costs associated with the alternatives are listed below: Alternative M Alternative N Supplies costs 31,000.00 52,000.00 Assembly costs 33,000.00 33,000.00 Power costs 23,000.00 27,000.00 Inspection costs 15,000.00 21,000,00 Required: a. Which costs are relevant and which are not relevant in the choice between these two alternatives? WHY? b. What is the differential cost between the two alternatives?
The following mutually exclusive investment alternatives have been presented to you. The life of all alternatives is 10 years. A В C Capital investment Annual expenses $60,000 $90,000 $40,000 $30,000 $70,000 35,000 45,000 15,000 30,000 40,000 25,000 16,000 Annual revenues 50,000 52.000 38,000 28,000 Market value at EOY 10 15,000 10,000 10,000 39.0% 10,000 IRR ??? 7.4% 30.8% 9.2% After the base alternative has been identified, the first comparison to be made in an incremental analysis should be which of...
Management is considering the following independent alternatives for 2018. 1. Increase unit selling price 20% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $150,000 to total salaries of $60,000 plus a 5% commission on sales. Instructions (a) Compute the break-even point in dollars for 2017. (b) Compute the break-even point in dollars under each of the alternative courses of action. (Round all ratios to nearest full percent.) Which...
- Calculate pro different alternatives. (LO4) AP Uller Company's most recent contribution margin format income statement follows: Total Per Unit $15.00 Sales (20,000 units) $300,000 9.00 Less: Variable expenses 180,000 $ 6.00 Contribution margin 120,000 70,000 Less: Fixed expenses Profit S 50,000 "Bement is considering the following independent action to increase profit: Tease selling price by 15% with no change in total variable costs. Buduce variable costs to 50% of sales. Reduce fixed costs by $20.000. Settucions Calculate the profit...
Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below: Supplies costs Power costs Inspection costs Assembly costs Alternative e $85,000 $38,000 $35,000 $46,000 Alternative R $85,000 $37,200 $37,200 $46,000 Required: a. Which costs are relevant and which are not relevant in the choice between these two alternatives? b. What is the differential cost between the two alternatives? a. Supplies costs Power costs Inspection costs Assembly costs b. Differential cost