Answer:
Lease Equipment $150,000
BUY EQUIPMENT$134,700
Differential Effects-$15,300
The company should choose BUY EQUIPMENT which is Alternative 2
Explanation:
Preparation of the differential analysis dated March 15 to determine whether Laredo Corporation should lease (Alternative 1) or purchase (Alternative 2) the equipment
Differential Analysis
Lease (Alt. 1) or Buy (Alt. 2) Equipment
March 15
Lease Equipment (Alternative 1); Buy Equipment
(Alternative 2); Differential Effects (Alternative 2)
Costs:
Purchase price $0 $120,000 $120,000
Freight and installation $0 $1,500 $1,500
Repair and maintenance (6 years) $0 $13,200.$13,200
($2,200*6=$13,200)
Lease (6 years) $150,000 $0 -$150,000
($25,000*6)
Total costs $150,000 $134,700 -$15,300
Based on the above calculation the company should choose BUY EQUIPMENT which is Alternative 2
Answer:
Find explanation below.
Explanation:
A branch plan is the contingency plan. It is chosen when planning for future possible occurrences. A Sequel plan on the other hand is made based on the outcome of the main plan. Therefore, a Sequel plan is made depending on whether the main plan was successful or unsuccessful.
Examples of Branch plan decisions:
- A plan to dispatch military forces to aid a fight in another country.
- Reassigning military personnel to another location.
Examples of Sequel plan decisions:
- A plan to begin administering relief operations.
- A plan to return to normal mode of operation, perhaps after a successful war.
Answer:
As competition increases, traders must offer certain advantage to their clients, e.g. lower prices, credit sales, longer payment terms, etc., which end up benefiting their clients, and also traders will be willing to relinquish some of their gains to keep existing clients.
This is exactly the same thing that occurs in a given market when the number of suppliers increases, decreasing the equilibrium price and increasing consumer surplus.
Answer:
Final balance in the cost of goods sold = $299,000
Explanation:
Cost of Goods Sold:
Job C-62 $141,000
Job C-63 $183,000
Adjustment to Manufacturing Overhead account:
Overhead over allocated to be reduced from COGS ($25,000)
Balance in Cost of Goods Sold (debit) $299,000
( 141,000+183,000-25,000)
Therefore, final balance in the cost of goods sold = $299,000
Answer:
New buy
Explanation:
Based on the information given NEW BUY occur in a situation where a person or an individual order a brand new products that has already been selling for a long period of time in which the new product that is been ordered must be different from the one that was already in existence before now and the new products will have to be produce with a new material which will as well include brand new different design as well a different size just as in the case of Lands' End .
Therefore This would more than likely be an example of a: NEW BUY
