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AnnyKZ [126]
2 years ago
9

Pine Street Inc. makes unfinished bookcases that it sells for $58.09. Production costs are $37.97 variable and $10.12 fixed. Bec

ause it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $73.08. Variable finishing costs are expected to be $6.64 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Pine Street should sell unfinished or finished bookcases.
Business
1 answer:
ololo11 [35]2 years ago
7 0

Answer:

Pine Street should sell finished bookcases.

Explanation:

                                  Differential analysis

                                 Sell unfinished  Process further  Net income

                                                                                        Increase (decrease)

Sale price per unit        58.09                    73.08                  14.99

<u>Cost per unit</u>

Variable                         37.97                     44.61                  -6.64

Fixed                              10.12                      10.12                      0

Total                              48.09                     54.73                  8.35

Net income per unit      10                         18.35                  8.35

So, the book cases should be sold after processed further.

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Warner Corporation purchased a machine 7 years ago for $405,000 when it launched product P50. Unfortunately, this machine has br
maxonik [38]

Answer:

1. $46,550

2. $405,000

3. $450,600

Explanation:

1. Computation of differential cost regarding the decision to buy the model 200

Differential cost = Cost of a new model 300 - Cost of a new model 200

Differential cost = $396,350 - $349,800

Differential cost = $46,550

So, the differential cost regarding decision to buy model 200 is $46,550.

2. Sunk costs are the costs which are already incurred by the entity in the past and which are not relevant to decision made today. In this case, sunk cost is the cost of the machine purchased seven years ago for $405,000.

3. Opportunity cost is the profit forgone by chosen alternative course of action. In this case, the Opportunity cost regarding the decision to invest in the model 200 machine is $450,600.

6 0
3 years ago
Marigold Inc. reported total assets of $2391000 and net income of $318000 for the current year. Marigold determined that invento
Artist 52 [7]

Answer:

Total Assets = $2391000

Net Income = $318000

Explanation:

The corrected amount for total assets and net income for the year :

Total Assets = $2391000

Net Income = $318000

7 0
2 years ago
Brian is a truck driver who delivers products throughout Massachusetts. His friend Chris is a traffic planner for the same state
DiKsa [7]

Answer:

Assuming that you can only choose one answer, the most suitable one would be (A) Chris designs models to make traffic flow better, which enables Brian to get to his company’s warehouse faster.

Explanation:

This answer is correct because Chris is a traffic planner – thus he merely designs the traffic flow, he does not create it, thus making answer (D) incorrect. Though (B) is true, it doesn’t relate to Chris’ career, making it false as well. As for (C), the answer is not correct because Chris doesn’t design the maps of the state, he only designs the traffic flow.

6 0
2 years ago
Read 2 more answers
Question Number 5) UPS management feels that one of the main advantages ________ provides to the company is structure a union sa
matrenka [14]

One of the main advantages of C. The Union in a workplace is that it helps to provide a structure.

<h3>What is a Labor Union?</h3>

This refers to a group that protects the rights and interests of workers to have better working conditions and remunerations.

Hence, we can see that the importance of labor unions cannot be overemphasized as according to UPS management, they believe that one of the main advantages of C. The Union in a workplace is that it helps to provide a structure

Read more about labor unions here:

brainly.com/question/881501

7 0
1 year ago
High valley antiques would like to issue new equity shares if its cost of equity declines to 10.5 percent. the company pays a co
True [87]

The price of the share would be calculated as -

Price of share = Annual constant dividend / Cost of equity

Given, cost of equity = 10.5 %

Annual constant dividend = $ 1.60

Price of share = $ 1.60 ÷ 10.50 %

Price of share = $ 15.238 or $ 15.24

8 0
3 years ago
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