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ivann1987 [24]
2 years ago
8

Saalfrank Corporation is considering two alternatives that are code-named M and N. Costs associated with the alternatives are li

sted below: Alternative M Alternative N Supplies costs $ 77,000 $ 68,000 Assembly costs $ 49,000 $ 49,000 Power costs $ 29,000 $ 44,000 Inspection costs $ 42,000 $ 31,000 Required: a. Which costs are relevant and which are not relevant in the choice between these two alternatives? b. What is the differential cost between the two alternatives?
Business
1 answer:
posledela2 years ago
6 0

Answer:

a.

Relevant costs:

Supplies costs

Inspection costs

Assembly costs

Irrelevant cost:

power cost

b.$20,000

Explanation:

The following costs are relevant because they would be incurred as a result of investing in either of the two alternatives:

Supplies costs

Inspection costs

Assembly costs

Power costs is not relevant because is not incurred as direct consequence of the two alternatives,even when none of the alternatives is chosen power cost would still be incurred.

Costs of alternative M=$77,000+$49,000+$42,000+$168000

Costs of alternative N=$68,000+$49,000+$31,000=$148,000

Differential cost=$168,000-$148,000=$20,000

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Mike organizes a group of students upset over the food selection in the cafeteria. He assigns times for students to stand in the
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3 years ago
A coupon bond that pays interest of 4% annually has a par value of $1,000, matures in 5 years, and is selling today at $785. The
jarptica [38.1K]

Answer:

Actual Yiel to maturity is 9.3%

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Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.

Face value = F = $1,000

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Selling price = P = $785

Number of payment = n = 5 years

Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

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3 0
3 years ago
Ben and Chris combined their love of football with a business venture. They purchased a small portable cart and began selling fo
wolverine [178]

Answer: Option C

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In this case, Keystone Foods focuses on business-to-business (B2B) markets since it provides intermediate goods to other companies that later processes them into final goods that are purchased by final consumers.

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3 years ago
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