Explanation:
There are two alternatives
1. Sold for $6,300
The inventory parts should be sold for $6,300 as the current inventory parts are not relevant as it is a sunk cost i.e $18,500
2. Repair and after that sale it
Now in this case, we have to determine the benefit generated i.e come from
= Sale value - repairing cost
= $19,700 - $9,100
= $10,600
As we can see that the alternative 2 generated higher benefit as compare to the alternative 1 so it would be more beneficial for the company
Answer:
Effect on income= $5,000 increase
Explanation:
Giving the following information:
One-time offer:
1,000 units at $25 per unit.
<u>Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.</u>
Unitary cost= 12 + 8= $20
Effect on income= 1,000*(25 - 20)
Effect on income= $5,000 increase
<span>It takes time for a team to develop and be productive, Erik should give some more time for the team to stabilize, sort out their differences and work towards the common objective as a team. This is normal for a team to have conflicts in the beginning, it leads to brain storming and help the team to get to know each other better and normalize.</span>
Answer: The unit Product cost is $32.09
Explanation:
$
Add : Direct Material. 35
Add: Direct Labour 16
-------------
Prime Cost. 51
Add: variable manufacturing overhead. 15
Add: Fixed manufacturing overhead. 24,000
-----------------
Production cost. 24,066
-------------------
To determine the unit Product cost for the year we will divide the production cost by the unit produced
Production cost ÷ unit produced
Since the the production cost is $24,066 and unit produced is 750unit
24,066÷ 750
= 32.088
= 32.09
Therefore the unit Product cost is $32.09
Answer:
The answer is B. $10,000
Explanation:
Straight-line depreciation method equals:
[Historical cost of the asset - salvage value(if any)] ÷ useful number of years of the asset.
Historical cost of the asset = $33,000
Salvage value = $3,000
Useful life = 3 years
= ($33,000 - $3,000) ÷ 3 years
=$10,000
So the amount of depreciation that will be recorded during 2018 using the straight-line method is $10,000
