Opportunity cost is the economic benefit foregone due to selecting alternative course of action = 38,000 - 14,000 = 24,000 Option A is the answer |
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Longview Baskets has in its inventory 2.200 damaged baskets that cost $20.000 The baskets can be...
Longview Baskets has in its inventory 2.200 damaged baskets that cost $22.000 The baskets can be sold in their present condition for $12,000, or repaired at a cost of $18,000 and sold for $38,000. What is the opportunity cost of selling the baskets in their present condition? O A $20,000 O B. $30,000 OC. $34.000 OD. $56,000
Longview Baskets has in its inventory 2,000 damaged baskets that cost $22.000 The baskets can be sold in their present condition for $14,000, or repaired at a cost of $17.000 and sold for $35.000. What is the opportunity cost of selling the baskets in their present condition? O A $18,000 OB. $31.000 C. $52,000 OD. $36,000
Longview Baskets has in its inventory 2,500 damaged baskets that cost $25,000 The baskets can be sold in their present condition for $12,000, or repaired at a cost of $13,000 and sold for $40,000. What is the opportunity cost of selling the baskets in their present condition? A. $27,000 B. $37,000 C. $53,000 D. $ 25,000
Four Guys Company has in its inventory 5,000 paired at a cost of $45,000 and sold for $78,000. What is the opportunity cost of selling the televisions in their present condition? O A $123,000 O B. $79,000 OC. $33,000 OD. $87,000
Four Guys Company has in its inventory 5,200 paired at a cost of $48,000 and sold for $78,000. What is the opportunity cost of selling the televisions in their present condition? O A. $30,000 OB. $126,000 OC. $82,000 OD. $87,000
Burke Company produced 8,000 units of inventory and sold 6,000 of them. The company incurred the following production costs: Variable manufacturing cost: $6.00 per unit Fixed manufacturing overhead cost: $24,000 total Assuming the company sells its product at a price of $17 per unit, and incurred $10,000 in selling and administrative costs, what is the amount of net income under absorption costing? Select one: O A. $14,000 B. $26,000 C. $38,000 O D. $24,000
Tawstir Corporation has 800 obsolete personal computers that are carried in inventory at a total cost of $1,100,000. If these computers are upgraded at a total cost of $40,000, they can be sold for a total of $750,000. As an alternative, the computers can be sold in their present condition for $690,000. The sunk cost in this situation is: O $40,000 O $750,000 $1,100,000 O $690,000
The management accountant for Giada's Book Store has prepared the following income statement for the most current year: Sales Cost of goods sold Contribution margin Order and delivery processing Rent (per sq. foot used) Allocated corporate costs Corporate profit Cookbook $65,000 38,000 27,000 20,000 4,000 8,000 $ (5,000) Travel Book $120,000 70,000 50,000 23,000 5,000 8,000 $14,000 Classics $52,000 24,000 28,000 13,000 5,000 8,000 $2,000 Total $237,000 132,000 105,000 56,000 14,000 24,000 $11,000 If the cookbook product line had been...
The Tolar Corporation has 400 obsolete desk calculators that are carried in inventory at a total cost of $576,000. If these calculators are upgraded at a total cost of $110,000, they can be sold for a total of $170,000. As an alternative, the calculators can be sold in their present condition for $40,000. Assume that Tolar decides to upgrade the calculators. At what selling price per unit would the company be as well off as if it just sold the...
Tawstir Corporation has 620 obsolete personal computers that are carried in inventory at a total cost of $959,760. If these computers are upgraded at a total cost of $32,860, they can be sold for a total of $725,400. As an alternative, the computers can be sold in their present condition for $663,090. The sunk cost in this situation is: $725,400 $663,090 $32,860 $959,760