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zhenek [66]
3 years ago
7

Moon Micro is a small manufacturer of servers that currently builds its entire product in Santa Clara, California. As the market

for servers has grown dramatically, the Santa Clara plant has reached capacity of 10,000 servers per year. Moon is considering two options to increase its capacity. The first option is to add 10,000 units of capacity to the Santa Clara plant at an annualized fixed cost of $10 million plus $500 labor per server. The second option is to have Molectron, an independent assembler, manufacture servers for Moon at a cost of $2,000 for each server (excluding raw materials cost). Raw materials cost $8,000 per server, and Moon sells each server for $15,000. Moon must make this decision for a two-year time horizon. During each year, demand for Moon servers has an 80 percent chance of increasing 50 percent from the year before and a 20 percent chance of remaining the same as the year before. Molectron’s prices may change as well. They are fixed for the first year but have a 50 percent chance of increasing 20 percent in the second year and a 50 percent chance of remaining where they are. Use a decision tree to determine whether Moon should add capacity to its Santa Clara plant or if it should outsource to Molectron. What are some other factors that we have not discussed that would affect this decision?

Business
1 answer:
AfilCa [17]3 years ago
3 0

Answer:

Answer for below mentioned points is in the attached image :

Use a decision tree to determine whether Moon should add capacity to its Santa Clara plant or if it should outsource to Molectron. What are some other factors that we have not discussed that would affect this decision?

Explanation:

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False

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Accounts receivable arising from sales to customers amounted to $80,000 and $70,000 at the beginning and end of the year, respec
Oksana_A [137]

Answer:

$250,000

Explanation:

Calculation for the cash flows from operating activities to be reported on the Statement of Cash Flows

Using this formula

Cash flows=Income Statement+(Accounts receivable arising from sales)

Let plug in the formula

Cash flows=$240,000 +($80,000-$70,000)

Cash flows=$240,000 +$10,000

Cash flows=$250,000

Therefore the cash flows from operating activities to be reported on the Statement of Cash Flows is $250,000

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Grace Co. had a Chinese yuan payable resulting from imports from China and a Mexican peso receivable resulting from exports to M
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Possible options:

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D. Yuan decrease, Peso decrease

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The accounts listed below appeared in the December 31 trial balance of the Savard Theater.
n200080 [17]

Answer:

1. Dr Depreciation expense $10,566

Cr Accumulated depreciation-equipment $10,566

2. Dr Interest expense $1,440

Cr Interest payable $1,440

3. Dr Admission revenue $57,300

Cr Deferred revenue $57,300

4. Dr Prepaid advertising $1,025

Cr Advertising expense $1,025

5. Dr Salaries and wages expense $4,408

Cr Salaries and wages payable $4,408

Explanation:

Preparation of the annual adjusting entries necessary on December 31.

1. Dr Depreciation expense $10,566

(192,000-22,944/16)

Cr Accumulated depreciation-equipment $10,566

2. Dr Interest expense $1,440

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Cr Interest payable $1,440

3. Dr Admission revenue $57,300

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Cr Deferred revenue $57,300

4. Dr Prepaid advertising $1,025

Cr Advertising expense $1,025

5. Dr Salaries and wages expense $4,408

Cr Salaries and wages payable $4,408

8 0
2 years ago
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