Answer:
The alternative that should be chosen assuming identical replacement is:
Alternative B.
Explanation:
a) Data and Calculations:
Alternatives:
A B
First Cost $5,000 $9,200
Uniform Annual Benefit $1,750 $1,850
Useful life, in years 4 8
Rate of return 7% 7%
Annuity factor 3.387 5.971
Present value of annuity $5,927.25 $11,046.35
Net cash flow $927.25 $1,846.35
b) Alternative B yields a higher return than Alternative A. Since the two alternatives are based on the same rate of return, Alternative B will bring in a higher annual benefit, even when discounted to the present value.
Answer:
The $400,000 should be a result of the acquisition of the in-process research and development activities
Explanation:
Intangible Assets: The intangible assets are those assets that cannot be seen or even touched. It is not tangible in nature
The example is goodwill, and intellectual properties like - patents, copyrights, trademarks, etc.
The recording of the intangible assets based on the fair market value i.e $400,000 instead of associated costs.
Solution:
Differential Analysis:
Continue Eliminate Net income
Inc/Dec
Sales 201000 0 -201000
variable cost 176000 0 176000
Contribution margin 25000 0 -25000
Fixed cost 30000 20300 9700
Net income / (loss) -5000 -20300 -15300
No, The Product line shall not be eliminated
Answer:
6,000
Explanation:
Bellue incorporated manufactures a single product
The variable costing net operating income is $92,400
The inventory is 3100 units
The fixed manufacturing overhead cost is $1
Therefore the absorption cost can be calculated as follows
= 9200-1 x3200
= 9200- 3200
= 6000
Hence the absorption cos is $6,000
Answer:
Explanation: B Food Products & Processing Systems
