Answer: All of the above
Explanation: The cost of changing the capacity includes the cost of capacity adding or removing (capacity strategy) and also costs involved in workforce hiring and laying off (workforce strategy).
The cost of changing capacity includes the Cost of adding machine capacity. Cost of reducing...
A shop wants to increase capacity by adding a new machine. The firm is considering proposals from vendor A and vendor B. The fixed costs for machine A are $90,000 and for machine B, $75,000. The variable cost for A is $15.00 per unit and for B, $18.00. The revenue generated by the units processed on these machines is $22 per unit. If the estimated output is 9,000 units, which machine should be purchased? (Chapter 7s) Select one: A. machine...
The Barberton Municipal division of Road Maintenance is charged with road repair in the city of Barberton and the surrounding area. Cindy Kramer, road maintenance director, must submit a staffing plan for the next year based on a set schedule for repairs and on the city budget. Kramer estimates that the labor hours required for the next four quarters are 7,000, 13,000, 19,000, and 10,000, respectively. Each of the 11 workers on the workforce can contribute 500 hours per quarter....
When changing from the average cost method to FIFO, the company: Multiple Choice a. Includes in current year’s income the cumulative after-tax difference that would have resulted if the company had used FIFO in all prior years. b. Revises comparative financial statements. c. Records a journal entry to adjust the book balances from their current amounts to what those balances would have been using FIFO. d. All of these answer choices are correct.
The Barberton Municipal division of Road Maintenance is charged with road repair in the city of Barberton and the sumounding area. Cindy Kramer, road maintenance director, must submit a staffing plan for Kramer estimates that the labor hours required for the next four quarters are 6,000, 12.000. 20,000, and 9.000 the 11 workers on the workforce can contribute 500 hours per quarter. Payroll costs are $6,000 in wages per worker for regular time worked up to 500 hours, with an...
When changing from the average cost method to FIFO, the company: Multiple Choice Includes in current year’s income the cumulative after-tax difference that would have resulted if the company had used FIFO in all prior years. Revises comparative financial statements. Records a journal entry to adjust the book balances from their current amounts to what those balances would have been using FIFO. All of these answer choices are correct. Next
The Ujsag Printing Co. wants to calculate the cost of adding a third machine. Comment on the following statement made by the company accountant: “If we add a third printing press, our total costs will increase from $1060 to $1191. Therefore the marginal cost of the third machine is $1191/3=$397.” Is the accountant correct? Explain your reasoning.
ABC company intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed cost for proposal A are $10,000, and for proposal B, $8,000. The variable cost for A is $10.00, and for B, $7.00. The revenue generated by each unit is $20.00. You definitely will pick up a machine which will produce the larger profit. If 2000 units will be sold, what will the profit in dollars be generated assuming...
The cost of a commercial coffee maker machine was $1,000 when purchased 7 years ago. It has the capacity of 100-cups. What would be the cost of a higher capacity 200-cup machine if the exponent value is 0.23?
a) the total cost of hiring=$ (enter your response as a whole number) b)the total cost of layoffs=$?(enter your response as a whole number) c)the total inventory carrying cost =$?(enter your response as a whole number) d)the total stockout cost$?(enter your response as a whole number) e) the total cost, excluding normal time labor cost, is =$ ?(enter your response as a whole number) The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next...
Too Nice Company (TNC) includes with the sale of its jumping bean machine, a 5-year warranty that covers all repairs and maintenance. The selling price for the jumping bean machine and the related warranty is $1,000. A competitor sells a similar machine without any warranty for $850. TNC does not sell the warranty separately nor is it aware of any company that does. TNC estimates it will cost $120 to perform warranty work on each jumping bean machine over the...