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kumpel [21]
3 years ago
8

Shelton Co. purchased a parcel of land six years ago for $874,500. At that time, the firm invested $146,000 in grading the site

so that it would be usable. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $54,500 a year. The company is now considering building a warehouse on the site as the rental lease is expiring. The current value of the land is $926,000. What value should be included in the initial cost of the warehouse project for the use of this land? $1,020,500
Business
1 answer:
Oliga [24]3 years ago
3 0

Answer:

$926,000

Explanation:

For computing the initial cost of the warehouse project, we consider the current value of the land i.e represent the opportunity cost and the land value which is purchased six years ago for $874,500 represent the sunk cost which is not recoverable now. So, this sunk cost is not relevant.

And, the lease cost is also not relevant as the lease period will be ended soon.

All other information which is given is not relevant. Hence, ignored it

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Steve’s Lumber Company features a large selection of materials for flooring, decks, moldings, windows, siding and roofing. It is
liq [111]

Answer:

1. The major issue in the process is the lack of communication between different parties. The process being manually driven, might affect the customer satisfaction and lead to lost sales. The changes which need to be made is to make available the price information of different items at once, when the customer comes in to place an order. This can be made possible by asking the suppliers to send the updated sheet every morning before the day's business begins. It will be better if the entire uncatalogued as well as the price sheet is in electronic form, which can be updated immediately, as soon as the information is received from supplier in the morning. One better alternative is to connect the suppliers through an ERP so that their price might reflect at the company's end as soon as it is updated, It will reduce much hassle and mistakes that might creep in due to manual process.

2. a. The number of customers leaving per day / week to competitors due to inefficiency.

b. Total average delay in customer's order.

c. Customer satisfaction rating of the process as this will give the overall picture of customer's opinion about the company.

3. The information system might enable the suppliers to update their information each day which can then be used by the company reps to find out the right price of an item and enable him /her to provide the estimate immediately, leading to greater customer satisfaction, reducing the lost sales and eliminating the chances of a wrong quote being given.

4 0
3 years ago
Which of the following kinds of price discrimination occurs when each customer is charged one price for the first set of units p
olasank [31]

Answer:

D

Explanation:

Price discrimination is when the same product is sold at different prices to customers in different markets

types of price discrimination

1. first degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.

2. second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.  

3, third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students  

3 0
3 years ago
Wildhorse Company accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total
tangare [24]

Answer:

Variable cost per unit= $1.4 per unit

Explanation:

Giving the following information:

Miles Driven Total Cost Miles Driven Total Cost

January: 8,000 $14,120

March: 8,550 $14,979

February: 7,490 $13,495

April: 8,195 $14,490

To calculate the variable cost under the high-low method, we need to use the following formula:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (14,979 - 13,495) / (8,550 - 7,490)

Variable cost per unit= $1.4 per unit

7 0
3 years ago
The fixed cost of Brendon Willows, a baseball bat manufacturing company, is $500,000 per year. The cost of wood and labor to man
Inessa [10]

Answer:

option (B) 25,000

Explanation:

Data provided in the question:

Fixed cost = $500,000 per year

Cost of wood and labor to manufacture one bat = $5

Selling price of the bat = $25

Now,

At breakeven, total cost equals to the total revenue

let the breakeven quantity be 'x'

thus,

$500,000 + $5x = $25x

or

$25x - $5x = $500,000

or

$20x = $500,000

or

x = 25,000

Hence,

the correct answer is option (B) 25,000

7 0
3 years ago
If I mark you brainliest, I will answer a question of yours. And you also mark me brainliest. Deal?
RUDIKE [14]

Answer:

deal I got you..............

6 0
2 years ago
Read 2 more answers
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