1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alborosie
3 years ago
10

Primrose Yard receives 15,000 large trees each year that they process into 15,000 rough logs. Currently, Primrose sells the roug

h logs for $50 each. Primrose is considering processing the logs further into refined lumber.
Each log can be processed into 350 feet of refined lumber at an additional cost of $0.20 per foot. The refined lumber can be sold for $0.80 per foot.

Assume that the cost of getting the 15,000 large trees falls by half.

Should Primrose sell the rough logs at split-off or process it further?

a. It should sell at split-off because the decrease in cost price will increase the selling price of the logs.

b. It should sell at split-off because the reduction in the cost of the trees is irrelevant.

c. It should process further because the reduction in the cost of the trees is irrelevant.

d. It should process further because the reduction in the cost of trees makes that option more profitable than it was before.

e. It should process further because the cost reduction will decrease the processing cost.
Business
1 answer:
Kazeer [188]3 years ago
7 0

Answer:

c. It should process further because the reduction in the cost of the trees is irrelevant.

Explanation:

For the purpose of this Decision,

Benefit of processing further = Sales Value after processing – Sale Value before processing – Further Processing costs

Cost of acquiring trees is a sunk cost already incurred and hence is not relevant

Hence, benefit of processing = (0.80-0.20)*350 – 50

= $160

Hence, the answer is

c. It should process further because the reduction in the cost of the trees is irrelevant.

You might be interested in
Of the following business transactions, the only one that describes an importing activity is:
AnnyKZ [126]

Answer: A retailer in Sweden receives goods from Mexico to sell in a chain of stores.

Explanation:

Import is when goods are brought from other countries into a particular country. On the other hand, exports are the goods that one sells to other countries.

From the options given, it should be noted that the importing activity is when a retailer in Sweden receives goods from Mexico to sell in a chain of stores. The goods being brought from other countries into ones country shows that it's an import.

6 0
3 years ago
For an activity classified as a hobby, the expenses are categorized as follows:
wlad13 [49]

Answer:

Option C is correct.

The correct sequence is (2), (3), (1)

Explanation:

(2) Amounts deductible under other Code sections without regard to the nature of the activity, such as property taxes and home mortgage interest. should be deducted first

(3) Amounts deductible under other Code sections if the activity had been engaged in for profit, but only if those amounts do not affect adjusted basis (e.g., maintenance, utilities, and supplies). are deducted next

(1)Deductions affecting adjusted basis (e.g., depreciation) are taken next. At any point where the expenses exceed income,   the deduction is limited to the remaining income.

5 0
3 years ago
Janet works for a media agency based in Japan. Janet is helping the IMC manager of Siljure, a French cosmetics company, with the
Tanzania [10]

Answer:

D

Explanation:

Encoding the message

Encoding p is the act of converting the idea into words pictures or gestures that will convey meaning. It consists in changing the information into some form of logical and coded message.

The encoding process is all about the purpose of communication and the relation between the sender and the receiver. In a formal situation, encoding involves:

Making sure a language is selected, selecting a medium of communication; and selecting an appropriate communication form

3 0
3 years ago
Read 2 more answers
The CEO of a multinational company finds that profits are drastically decreasing. He realizes that the employees need to be imme
Darya [45]

Answer:

Video Conferencing

Explanation:

Based on the information provided within the question it can be said that the one appropriate media for the CEO to use would be Video Conferencing. This would allow everyone that needs to hear the message to connect via video calling to the same lobby in which the CEO can make the announcement. This form of communication get's rid of the misunderstandings or "lost in transit" problems that sometimes arise from more traditional communication methods such as text or email's

7 0
4 years ago
The cost of successfully defending a patent in an infringement suit should be
Ad libitum [116K]
The cost of successfully defending a patent in an infringement suit should be amortized over the remaining estimated life of the patent. Amortization means adding the cost to patent account and dividing the costs of the suit by twenty years or by the remaining useful life of the patent, whichever one is shorter.
6 0
3 years ago
Other questions:
  • g Question 1 of 1010.0 Points A company's unethical behavior may result in the following except A. buyers will shun the company
    5·2 answers
  • At December 31, Gill Co. reported accounts receivable of $268,000 and an allowance for uncollectible accounts of $750 (credit) b
    5·1 answer
  • Sunset Corp. currently has an EPS of $2.09, and the benchmark PE for the company is 18. Earnings are expected to grow at 6.5 per
    9·1 answer
  • What is MLS <br><br><br>:) :) :) :)​
    6·1 answer
  • Aggie Company is going to trade-in an old piece of equipment for new equipment.
    12·1 answer
  • Independent contractors should purchase __________ liability insurance, which provides protection from liability as a result of
    14·1 answer
  • When the benefits and costs of pollution reduction are known with certainty, which regulatory instrument will result in the effi
    6·1 answer
  • You own a small store. Your cashier thinks you should lower prices to increase your total revenue and your friend thinks you sho
    11·1 answer
  • MVJ Corp., a market research firm, borrows $2 million from trimitium bank. while negotiating with the bank, the firm signs a pro
    15·1 answer
  • On June 1, 2019, Cain Company, a new firm, paid $4,300 rent in advance for a five-month period. The $4,300 was debited to the Pr
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!