Answer:
Explanation:
Incremental cost
Inspection cost prior to shipment - 45,000
Upgrading of equipment - 400,000
Incremental benefit - 25,000
The incremental cost of improving quality far outweigh the incremental benefit
Even though loss of profit was avoided by retaining existing customers , yet the quality improvement program dies not guarantee additional customers and profit to write off or reduce the incremental cost .
Therefor , it is not advisable fort the company to go on with the quality program.
Answer:
The definition would be defined in the clarification portion below, according to the particular context.
Explanation:
- Even before managers accomplish diversification besides trying to create a conglomerate whilst also buying other corporations, it is almost always accomplished at a premium surrounded by white market rates because once shareholders could effectively achieve consolidation according to their own besides investing money throughout multiple organizations.
- Although it may be more difficult to accurately determine productivity in a conglomerate, authority costs will be lower as well as assets might well be apportioned around through segments incompetently.
Answer:
Underapplied Manufacturing Overhead $23,000
Explanation:
Sawyer Manufacturing Corporation
Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base
= $300,000 ÷ 52,000 direct labor hours
= 5.7 Approximately $6 per direct labor-hour
Overhead over or underapplied Actual MOH
= 365,000
Applied MOH = $6 x 57000 = $342,000
Underapplied Manufacturing Overhead = 365,000-342,000 = 23,000
Therefore The Corporation's applied manufacturing overhead cost for the year was $23,000
Answer:
$16.27
Explanation:
For computing the intrinsic value, first we have to compute the earning per share which is shown below:
Earning per share = (Net income) ÷ (Number of shares outstanding)
= ($14.73 million) ÷ (20.05 million shares)
= 0.734
Now the intrinsic value would be
= Earning per share × P/E ratio
= 0.734 × 22.17
= $16.27
