Question

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.

0 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
Marco mistakenly made 1,150 defective bikes. The bikes cost $69 each to make. A salvage company...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Marco mistakenly made 1,275 defective bikes. The bikes cost $61 each to make. A salvage company...

    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. Scrap Rework Sales Rework costs Total

  • 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...

  • 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...

  • 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...

  • Radar Company sells bikes for $370 each. The company currently sells 5,450 bikes per year and could make as many as...

    Radar Company sells bikes for $370 each. The company currently sells 5,450 bikes per year and could make as many as 5,000 bikes per year. The bikes cost $285 each to make: $170 in variable costs per bike and $115 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 850 bikes for $340 each. Incremental fixed costs to make this order are $45,000. No other costs will change if this order is...

  • 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...

  • 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...

  • i need help with corrections to make these red X’s go away. please provide explaination! board...

    i need help with corrections to make these red X’s go away. please provide explaination! board X RO C D E F G Exercise 4 Golf Co made 3,000 novelty golf balls last year. The balls normally sell for $7 each. The costs per ball were as follows: H $1.00 $0.50 Direct materials Direct labor Overhead Selling expenses Total cost per ball $4.00 $0.50 $6.00 This year an overseas company approached Golf Co and asked them to sell an 900...

  • Radar Company sells bikes for $380 each. The company currently sells 4,350 blkes per year and...

    Radar Company sells bikes for $380 each. The company currently sells 4,350 blkes per year and could make as many as 5,000 blkes per year. The bikes cost $240 each to make: $160 In varlable costs per blke and $80 of fixed costs per blke. Radar recelved an offer from a potential customer who wants to buy 850 blkes for $330 each. Incremental fixed costs to make this order are $44,000. No other costs will change If this order Is...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT