A | B | |
Revenues | 30,000 | 46,000 |
Less:Variable costs | (18000) | (18000) |
Less:Fixed costs | (10,000) | (16,000) |
Profit | 2,000 | 12,000 |
Hence incremental profit=(12000-2000)=$10,000.
Marigold Corp. is considering the following alternatives: Alternative A $30000 18000 10000 Alternative B $46000 18000...
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?
The cost to produce Part A was $20 per unit in 2019. During 2020, it has increased to $22 per unit. In 2020, Pharoah Company has offered to supply Part A for $15 per unit. For the make-or-buy decision, incremental costs are $2 per unit. differential costs are $7 per unit. net relevant costs are $2 per unit. incremental revenues are $7 per unit. Oriole Company is considering the following alternatives: Alternative A Alternative B Revenues $38000 $54000 Variable costs...
Marigold Corp. produces 60000 CDs on which to record music. The CDs have the following costs: Direct Materials $15500 Direct Labor 18000 Variable Overhead 2000 Fixed Overhead 7000 None of Marigold Corp.’s fixed overhead costs can be reduced, but another product could be made that would increase profit contribution by $4000 if the CDs were acquired externally. If cost minimization is the major consideration and the company would prefer to buy the CDs, what is the maximum external price that...
W ill pulkel, Itselt, will NOT be graded. 11. A company is considering the following alternatives: Alternative 1 Alternative 2 Revenues $120,000 $120,000 Variable costs 60,000 70,000 Fixed costs 35,000 35,000 Which of the following are relevant in choosing between the alternatives? A) Variable costs B) Revenues C) Fixed costs D) Variable costs and fixed costs
Marigold Corp. can produce 100 units of a component part with the following costs: $20000 Direct Materials Direct Labor 4500 Variable Overhead 18000 Fixed Overhead 11000 If Marigold Corp. can purchase the units externally for $50000, by what amount will its total costs change? An increase of $15500 Anincrease of $7500 A decrease of $11000 An increase of $50000
Marigold Corp. can produce 100 units of a component part with the following costs: Direct Materials $20000 Direct Labor 4500 Variable Overhead 18000 Fixed Overhead 11000 If Marigold Corp. can purchase the component part externally for $47000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision? a. Buy and save $2500 b. Make and save $500 c. Make and save $2500 d. Buy and save $4500
QUESTION 23 Two alternatives have the following cash flows: Alternative Year A B 0 -$10000 -$15000 1 +$3000 +$4400 2 +$3000 +$4400 3 +$3000 +$4400 4 +$3000 +$4400 Assuming a 5% MARR, use incremental analysis to determine which alternative should be selected?
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...
Figure 2 Shannon $ of consumption per year 30000 28000 26000 24000 22000 20000 18000 16000 14000 12000 5 10000 8000 6000 4000 2000 sample indifference curves 0 200 400 600 1166 800 1000 1200 1400 1600 1800 2000 2200 Hours of leisure per year Suppose all workers have 2000 hours to spend in work or leisure. Figure 2 displays sample indifference curves and a budget constraint corresponding to no income redistribution program for Shannon. Question 41 1 pts Refer...