Marco mistakenly made 1,275 defective bikes. The bikes cost $61
each to make. A salvage company decided to purchase the defective
bikes as is for $32 each. It would cost Marco $84 per bike to
rework the bikes. If Marco rework the bikes, he could sell them for
$146 each. No opportunity cost is associated with reworking the
bikes. What is the incremental net income from reworking the
bikes.
Homework Answers
| Scrap | Rework | |
|---|---|---|
| Sales | (1275*32) = 40,800 | (1275*146) = 186,150 |
| Rework cost | (1275*84) = 107,100 | |
| Total | 40,800 | 79,050 |
| Incremental revenue | 38,250 |
Comment if you face any issues
Add Answer to:
Marco mistakenly made 1,275 defective bikes. The bikes cost $61
each to make. A salvage company...
Marco mistakenly made 1,150 defective bikes. The bikes cost $69 each to make. A salvage company...
Marco mistakenly made 1,150 defective bikes. The bikes cost $69 each to make. A salvage company decided to purchase the defective bikes as is for $31 each. It would cost Marco $88 per bike to rework the bikes. If Marco rework the bikes, he could sell them for $132 each. No opportunity cost is associated with reworking the bikes. What is the incremental net income from reworking the bikes.
Signal mistakenly produced 1,325 defective cell phones. The phones cost $65 each to produce. A salvage company will buy...
Signal mistakenly produced 1,325 defective cell phones. The phones cost $65 each to produce. A salvage company will buy the defective phones as they are for $33 each. It would cost Signal $84 per phone to rework the phones. If the phones are reworked, Signal could sell them for $130 each. Assume there is no opportunity cost associated with reworking the phones. Compute the incremental net income from reworking the phones. ork the phones, the phones are rewo Scrap Rework...
S 23-9 Scrap or rework LO A1 Signal mistakenly produced 1,300 defective cell phones. The phones...
S 23-9 Scrap or rework LO A1 Signal mistakenly produced 1,300 defective cell phones. The phones cost $70 each to produce. A salvage company will buy the defective phones as they are for $33 each. It would cost Signal $86 per phone to rework the phones. If the phones are reworked, Signal could sell them for $142 each. Assume there is no opportunity cost associated with reworking the phones. Compute the incremental net income from reworking the phones. Scrap Rework...
Check my work QS 23-9 Scrap or rework LO A1 1.42 points Signal mistakenly produced 1,025...
Check my work QS 23-9 Scrap or rework LO A1 1.42 points Signal mistakenly produced 1,025 defective cell phones. The phones cost $69 each to produce. A salvage company will buy the defective phones as they are for $34 each. It would cost Signal $88 per phone to rework the phones. If the phones are reworked, Signal could sell them for $148 each. Assume there is no opportunity cost associated with reworking the phones. Compute the incremental net income from...
Exercise 10-6 Scrap or rework LO A1 A company must decide betwee that cost $5.40 per...
Exercise 10-6 Scrap or rework LO A1 A company must decide betwee that cost $5.40 per unit to manufacture. The units can be sold for the full price of $8.70 each. If the units are sold as is, the company will be able to build 16,000 replacement units at a cost of n scrapping or reworking units that do not pass inspection. The company has 16,000 defective units sold as is for $3.30 each, or they can be reworked for...
A company must decide between scrapping or reworking units that do not pass inspection. The company...
A company must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that cost $5.40 per unit to manufacture. The units can be sold as is for $2.80 each, or they can be reworked for $4.50 each and then sold for the full price of $8.20 each. If the units are sold as is, the company will be able to build 16,000 replacement units at a cost of $5.40 each, and sell...
Martin Manufacturing inadvertently produced 6,000 defective portable radios. The radios cost $10 each to be manufactured....
Martin Manufacturing inadvertently produced 6,000 defective portable radios. The radios cost $10 each to be manufactured. A salvage company will purchase the defective units as they are for $8 each. The production manager reports that the defects can be corrected for $4.50 per unit, enabling the company to sell them at the regular price of $15.00. The repair operations would not affect other production operations. Required: Determine whether the company should scrap (sell as is) the defective units or re-work...
Holmes Company produces a product that can be either sold as is or processed further. Holmes...
Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $98,000 to produce 1,725 units that can be sold now for $71,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $265 per unit. If Holmes processes further, the units can be sold for $445 each. Compute the incremental income if Holmes processes further. Process Sell as is Further Incremental Amount Sales Additional processing costs...
Chang Industries has 2,000 defective units of product that have already cost $14 each to produce....
Chang Industries has 2,000 defective units of product that have already cost $14 each to produce. A salvage company will purchase the defective units as they are for $7 each. Chang's production manager reports that the defects can be corrected for $15 per unit, enabling them to be sold at their regular market price of $21. Chang should: Scrap the units. Sell the units to the salvage company for $7 per unit. Sell the units as they are because repairing...
2) compute contribution margin for each channel 3) compute break even point (in terms of number...
2) compute contribution margin for each channel
3) compute break even point (in terms of number of orders and
dollars) for each distribution channel
(HINT - Fixed costs are all trade show expenses. Use
depreciation for the booth as a fixed cost. The booth cost should
be considered an investment not a fixed cost)
4) Calculate the number of orders at a target profit of
$100,000
5) Calculate the profitability for both the low and high order
estimates
We were...
Signal mistakenly produced 1,325 defective cell phones. The phones cost $65 each to produce. A salvage company will buy the defective phones as they are for $33 each. It would cost Signal $84 per phone to rework the phones. If the phones are reworked, Signal could sell them for $130 each. Assume there is no opportunity cost associated with reworking the phones. Compute the incremental net income from reworking the phones. ork the phones, the phones are rewo Scrap Rework...
S 23-9 Scrap or rework LO A1 Signal mistakenly produced 1,300 defective cell phones. The phones cost $70 each to produce. A salvage company will buy the defective phones as they are for $33 each. It would cost Signal $86 per phone to rework the phones. If the phones are reworked, Signal could sell them for $142 each. Assume there is no opportunity cost associated with reworking the phones. Compute the incremental net income from reworking the phones. Scrap Rework...
Check my work QS 23-9 Scrap or rework LO A1 1.42 points Signal mistakenly produced 1,025 defective cell phones. The phones cost $69 each to produce. A salvage company will buy the defective phones as they are for $34 each. It would cost Signal $88 per phone to rework the phones. If the phones are reworked, Signal could sell them for $148 each. Assume there is no opportunity cost associated with reworking the phones. Compute the incremental net income from...
Exercise 10-6 Scrap or rework LO A1 A company must decide betwee that cost $5.40 per unit to manufacture. The units can be sold for the full price of $8.70 each. If the units are sold as is, the company will be able to build 16,000 replacement units at a cost of n scrapping or reworking units that do not pass inspection. The company has 16,000 defective units sold as is for $3.30 each, or they can be reworked for...
Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $98,000 to produce 1,725 units that can be sold now for $71,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $265 per unit. If Holmes processes further, the units can be sold for $445 each. Compute the incremental income if Holmes processes further. Process Sell as is Further Incremental Amount Sales Additional processing costs...
2) compute contribution margin for each channel
3) compute break even point (in terms of number of orders and
dollars) for each distribution channel
(HINT - Fixed costs are all trade show expenses. Use
depreciation for the booth as a fixed cost. The booth cost should
be considered an investment not a fixed cost)
4) Calculate the number of orders at a target profit of
$100,000
5) Calculate the profitability for both the low and high order
estimates
We were...
Most questions answered within 3 hours.
-
Industry: Telecommunications in India
Here, you need to discuss the sources of the growth pattern
and...
asked 56 minutes ago -
Hydrobromic acid
dissolves solid iron according to the followiaung reaction:
Fe(s)+2HBr(aq)→
FeBr2(aq)+ H2(g)
Part A. What...
asked 2 hours ago -
Verify the following vector identity in SPHERICAL
COORDINATES.
div(curl(A)) = 0
asked 4 hours ago -
The work function (Φ) for a metal is 7.50×10-19 J.
What is the longest wavelength (nm)...
asked 5 hours ago -
1. Would the following procedural changes cause the
calculated mass percent Ni2+ ion in Ni(NH3)nCl2 to...
asked 6 hours ago -
1. Why does the voltage of the capacitor vary with frequency?
where does this missing voltage...
asked 7 hours ago -
p p please write each step out clearly
3. A manager of a company is considering...
asked 6 hours ago -
On October 1, Ebony Ernst organized Ernst Consulting; on October
3, the owner contributed $83,540 in...
asked 7 hours ago -
A.)As an electron moves through a region of space, its speed
decreases from 9.60 × 106...
asked 8 hours ago -
In java with the netbeans program do:
Through object programming
Create a class "ContadorP", which is...
asked 8 hours ago -
Pattern Corporation acquired all of Science
Company's outstanding stock on January 1, 2016 for $600,000 cash....
asked 8 hours ago -
Here are all accounts Tyler Co. maintains.
Tax expenses $4,750
Common stocks $48,840
SG&A expenses $2,500...
asked 8 hours ago