Bramble Makeup produces face cream. Each bottle of face cream costs $10.50 to produce and can be sold for $12.90. The bottles can be sold as is, or processed further into sunscreen at a cost of $14.60each. Bramble Makeup could sell the sunscreen bottles for $22.40 each. What should Bramble Makeup do?
ans. B
face cream revenue= 12.90 - 10.50 = 2.40
sunscreen revenue = (10.50+14.60) - 22.40
Bramble Makeup produces face cream. Each bottle of face cream costs $10.50 to produce and can be sold for $12.90. The bottles can be sold as is, or processed further into sunscreen at a cost of $14.60 each. Bramble Makeup could sell the sunscreen bottles
Sheridan Company produces face cream. Each bottle of face cream costs $11 to produce and can be sold for $15. The bottles can be sold as is, or processed further into sunscreen with an additional cost of $16 each. Sheridan Company could sell the sunscreen bottles for $25 each. a. Face cream must not be processed further because it decreases profit by $2 each. b. Face cream must be processed further because its profit is $9 each. c. Face cream...
Bramble Corp. has old inventory on hand that cost $10500. Its scrap value is $14000. The inventory could be sold for $35000 if manufactured further at an additional cost of $10500. What should Bramble do? Dispose of the inventory to avoid any further decline in value Hold the inventory at its $10500 cost Sell the inventory for $14000 scrap value O Manufacture further and sell it for $35000 Swifty Corporation reported the following information for the current year: Sales (46000...
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...