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Part 2a | Relevant Cost | |||
Material | $ 14,000,000 | |||
Labor: | ||||
Direct | $ 13,100,000 | |||
Supervision | $ 900,000 | |||
Indirect Plant | $ 4,000,000 | $ 18,000,000 | ||
Pension Cost ($5,000,000-$3,000,000) | $ 2,000,000 | |||
Total Annual Relevant Cost | $ 34,000,000 | |||
Part 2b | Not Relevatn Cost | |||
Depreciation -Equipment | $ 3,200,000 | |||
Depreciation -Building | $ 7,000,000 | |||
Pension Cost ($5,000,000-$2,000,000) | $ 3,000,000 | |||
Plant Manager and Staff | $ 800,000 | |||
Corporate Expense | $ 4,000,000 | |||
Total Annual Continuing Cost | $ 18,000,000 | |||
Part 2c | Non recurring Cost | |||
Termination Charges on cancelled material orders | $14,000,000*20% | $ 2,800,000 | ||
Employment Assistance | $ 1,500,000 | |||
Total Recurring Cost | $ 4,300,000 | |||
Part 3 | ||||
First Year | Other Years | |||
Cost of purchasing cover from outside | $-35,000,000 | $-35,000,000 | ||
Cost avoided by closing of plant | Part 2a | $ 34,000,000 | $ 34,000,000 | |
Cost of Closing the plant | Part 2c | $ -4,300,000 | ||
Salvage Value of Equipment and Building | $ 3,200,000 | |||
Net Advantage/(Disadvantage) of closing | $ -2,100,000 | $ -1,000,000 | ||
No Plant should not be closed |
Accounting 2-Case Study-Qual Support Corporation Plant Closing Case Study 1. QualSupport Corporation manufactures seats for automobiles, vans, trucks and various recreational vehicles. The com...
QualSupport Corporation manufactures seats for automobiles, vans, trucks, and various recreational vehicles. The company has a number of plants around the world, including the Denver Cover Plant, which makes seat covers. Ted Vosilo is the plant manager of the Denver Cover Plant but also serves as the regional production manager for the company. His budget as the regional manager is charged to the Denver Cover Plant. Vosilo has just heard that QualSupport has received a bid from an outside vendor...
QualSupport Corporation manufactures seats for automobiles, vans, trucks, and various recreational vehicles. The company has a number of plants around the world, including the Denver Cover Plant which makes seat covers Ted Vosilo is the plant manager of the Denver Cover Plant but also serves as the regional production manager for the company. His budget as the regional manager is charged to the Denver Cover Plant Vosilo has just heard that QualSupport has received a bid from an outside vendor...
Check my work 1 QualSupport Corporation manufactures seats for automobiles, vans, trucks, and various recreational vehicles. The company has a number of plants around the world, including the Denver Cover Plant, which makes seat covers. Ted Vosilo is the plant manager of the Denver Cover Plant but also serves as the regional production manager for the company. His budget as the regional manager is charged to the Denver Cover Plant. 6 points Vosilo has just heard that QualSupport has received...
Plant Closing DecisionQualSupport Corporation manufactures seats for automobiles, vans, trucks, and various recreational vehicles. The company has a number of plants around the world, including the Denver Cover Plant, which makes seat covers.Ted Vosilo is the plant manager of the Denver Cover Plant but also serves as the regional production manager for the company. His budget as the regional manager is charged to the Denver Cover Plant.Vosilo has just heard that QualSupport has received a bid from an outside vendor...
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QualSupport Corporation manufactures seats for automobiles, vans, trucks, and various recreational vehicles. The company has a number of plants around the world, including the Denver Cover Plant, which makes seat covers. Ted Vosilo is the plant manager of the Denver Cover Plant but also serves as the regional production manager for the company. His budget as the regional manager is charged to the Denver Cover Plant. Vosilo has just heard that QualSupport has received a bid from an outside vendor to supply...
there is missing or wrong part. can you solve this question again as soon as possible please? and please send your solutions. QualSupport Corporation manufactures seats for automobiles, vans, trucks, and various recreational vehicles. The company has a number of plants around the world, including the Denver Cover Plant, which makes seat covers Ted Vosilo is the plant manager of the Denver Cover Plant but also serves as the regional production manager for the company. His budget as the regional...
Please fill the blanks only calculations are not needed. 303 Help Save& Exit Submlt Check my work QualSupport Corporation manufactures seats for automobiles, vans, trucks, and various recreational vehicles. The company has a number of plants around the world, including the Denver Cover Plant, which makes seat covers Ted Vosilo is the plant manager of the Denver Cover Plant but also serves as the regional production manager for the company. His budget as the regional manager is charged to the...
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