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diamong [38]
3 years ago
9

QRC Company is trying to decide which one of two alternatives it will accept. The costs and revenues associated with each altern

ative are listed below: Alternative A Alternative B Projected revenue $ 210,000 $ 300,000 Unit-level costs 40,000 51,000 Batch-level costs 27,500 39,000 Product-level costs 30,000 32,000 Facility-level costs 25,000 27,500 What is the differential revenue for this decision?
A. $115,000
B. $90,000
C. $210.000
D. $300,000
Business
1 answer:
Ira Lisetskai [31]3 years ago
6 0

Answer:

The correct answer is option (B)  $90,000

Explanation:

Given Data;

Alternative A Projected revenue= $ 210,000

Alternative B Projected revenue = $ 300,000

A -Unit-level costs = $40,000

B- Unit-level costs = $51,000

A -Batch-level costs $27,500

B- Batch-level costs = $39,000

A -Product-level costs = $30,000

B-Product-level costs = $32,000

A-Facility-level costs = $25,000

B-Facility-level costs = $27,500

To calculate the differential revenue, we use the formula;

Differential revenue = Revenue for alternative A - Revenue for alternative B

Substituting, we have

Differential revenue = $300,000 - $210,000

                                 = $90,000

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A quality control activity analysis indicated the following four activity costs of a hotel:
svet-max [94.6K]

The Cost of Quality Report is as follows:

Quality Cost                 Quality     Percentage of                  Percentage of

Classification                  Cost        Quality Cost                      Total Sales

Prevention                  $98,600     20% ($98,600/$493,000)     3.4%

Appraisal                       49,300     10% ($49,300/$493,000)       1.7%

Internal Failure           246,500     50% ($246,500/$493,000)  8.5%

External Failure            98,600     20% ($98,600/$493,000)     3.4%

Total Quality Costs $493,000     100%                                       17.0%

Data and Calculations:

Inspecting cleanliness of rooms                             $49,300 (Appraisal)

Processing lost customer reservations                   98,600 (External failure)

Rework incorrectly prepared room service meal 246,500 (Internal failure)

Employee training                                                    98,600 (Prevention)

Total                                                                     $493,000

Sales                                                                 $2,900,000

Percentage of Quality Cost = Quality Cost/Total Quality Cost * 100

Percentage of Total Sales = Quality Cost/Total Sales * 100

Thus, the cost of quality report is an appraisal of how the hotel uses its resources to prevent poor quality, including its internal and external failures.

Learn more about cost of quality report here: brainly.com/question/23775957

4 0
3 years ago
You are considering the purchase of a certain stock. You expect to own the stock for the next four years. The current market pri
murzikaleks [220]

Answer:

The answer is: The expected rate of return from this investment is 26.68%

Explanation:

We are given the following cash flows for this operation:

  • Initial investment = -$24.50
  • Cash flow 1 = $1.25 (dividend year 1)
  • Cash flow 2 = $1.35 (dividend year 2)
  • Cash flow 3 = $1.45 (dividend year 3)
  • Cash flow 4 = $56.55 ($1.55 dividend year 4 + $55 stock's sales price)

Using an excel spreadsheet and the IRR function:

=IRR(value 1: value 5) =26.68%  

where

  • value 1 = -24.50
  • value 2 = 1.25
  • value 3 = 1.35
  • value 4 = 1.45
  • value 5 = 56.55

7 0
3 years ago
Vogel Corporation's cost of goods manufactured last month was $136,000. The beginning finished goods inventory was $35,000 and t
rosijanka [135]

Answer:

117,000 adjusted COGS

Explanation:

$$Beginning Inventory + Manufactured = Ending Inventory + COGS

35,000 + 136,000 = 48,000 + COGS

COGS = 123,000 before adjustment

overapplied overhead for 6,000

This means the applied is higher than actual expenses, the cost is 6,000 lower we must decrease the COGS

123,000 - 6,000 = 117,000 adjusted COGS

6 0
2 years ago
What is a financial institution’s decision to honor your checks even when you have exceeded your balance.
Anastaziya [24]
Overdraft Protection is a financial institution's decision to honor your checks even when you have exceeded your balance. A fee is charged to you for every overdraft.


6 0
3 years ago
Suppose the U.S. government imposes a quota on the number of Japanese-made cars allowed into the United States (the quota is set
Arturiano [62]

Answer:

The correct answer is c increase; remain the same.

Explanation:

Regardless of the motor market, in the technological world, audiovisual, sound and appliances, the Japanese country has evolved to become a huge world power sweeping the rest of the brands and filling all the sales lists. In addition, companies such as Toyota were gradually entering the forefront of the most Americanized and most popular vehicles in the United States. In 2007, the company displaced General Motors for the first time in the top of sales.

7 0
3 years ago
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