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aleksandrvk [35]
3 years ago
9

San Juan, Inc. is considering two alternatives: A and B. The costs associated with the alternatives are listed below: Alternativ

e A Alternative B Material costs $ 38,000 $ 66,000 Processing costs 43,000 66,000 Building costs 13,700 36,000 Equipment rental 20,700 20,700 If only the differential costs of the two decisions are considered, the total differential costs of Alternative B is
Business
1 answer:
ki77a [65]3 years ago
8 0

Answer:

Total differential cost= -$73300

Explanation:

Equipment rental is equal in both alternatives, so it is not relevant for making a decision.

Costs Alternative A:

Material costs $ 38,000

Processing costs 43,000

Building costs 13,700

Total= $94700

Costs Alternative B:

Material costs $ 66,000

Processing costs $66,00

Building costs $36,000

Total= $168,000

Total differential cost= 168000-94700=$73300

Alternative B costs $73300 more than Alternative A. Based only on this information, alternative A is better than alternative B.

You might be interested in
Product costs consist of all of the following except:_______
alexdok [17]

Answer: Dividends

Explanation:

What is Product costs ?

The cost incurred to produce a product are referred to as product  cost. Direct labor, direct materials, consumable production supplies, and factory overhead all are included in these prices. The cost of the labor necessary to provide a service to a customer can also be considered when calculating product cost. In the latter scenario, all cost involved with a service, such as compensation, payroll taxes, and employee benefits, ought to be included in the product cost.

Since product cost contains the amount of effort that is required by both GAAP and IFRS, it is included in the financial statements. When deciding on short-term production and sale-price strategies, however, managers may alter product costs to eliminate the overhead component.

To learn more about Product cost checkout the link below : https://brainly.ph/question/3079032

8 0
2 years ago
Business Solutions sells upscale modular desk units and office chairs in the ratio of 3:2 (desk unit:chair). The selling prices
Doss [256]

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the selling price per composite unit:</u>

<u></u>

selling price per composite unit= 1,280*0.6 + 530*0.4

selling price per composite unit= $980

<u>Now, the unitary variable cost per composite unit:</u>

Variable cost per composite unit= 780*0.6 + 280*0.4

Variable cost per composite unit= $580

<u>To calculate the break-even point in units, we need to use the following formula:</u>

Break-even point in units= fixed costs/ contribution margin per composite unit

Break-even point in units= 150,000 / (980 - 580)

Break-even point in units= 375

<u>Finally, the number of units per product:</u>

Desks= 375*0.6= 225

Chairs= 375*0.4= 150

4 0
3 years ago
Which of the following actions has NO impact on your credit score?
cluponka [151]
Your credit score is affected when you use money or open credit cards so the answer would be A
8 0
4 years ago
Wilfred Nadeau owns 300 shares of Consolidated Glue. The​ company's board of directors recently declared a cash dividend of 45 c
dedylja [7]

Answer:

<u>a. Zero dividend.</u>

<u>b. 3.5 new shares</u>;

<em>texes will be paid.</em>

<u>Explanation:</u>

a. March 20 is a date earlier than when the dividends are too be paid on April 18, and as such Wilfred Nadeau<em> will not</em> receive any dividend if he sells his stocks since he no longer has ownership of them.

b. 45 cents dividends per 300 stocks of Wilfred is $135 (reinvestment dividend plan).

With a discount of 3.4% at $39.8 (3.4%*39.8) current price per stock makes the total cost per stock after discount= $38.4.

Dividing the reinvestment dividend plan over the discounted price (135/38.4) = 3.5 new shares, According to the requirements of law the investor must still pay tax annually on his or her dividend income, whether it is received as cash or reinvested.

8 0
3 years ago
Chandler Kumar owns two antique stores. One is in an upscale neighborhood, and its merchandise is artfully arranged and priced t
Sav [38]

Answer: targeting

Explanation: In simple words, targeting strategies refers to the strategy involving the selection of potential customers and product that will be offered to those customers.

In the given case, Chandler is doing a minor change in the presentation of the goods offered so that he can target different type of customers. In the first store he is trying to target the high value customers by arranging the goods in a sophisticated manner and in the second one he is targeting the common customer.

Hence from the above we can conclude that Kumar is using different targeting strategies.

8 0
3 years ago
Read 2 more answers
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