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A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw m

daser333 [38]

Answer:

Profit for Kansas City = $376,375

Explanation:

a) Data and Calculations:

Omaha Kansas City

Expected annual demand (units) 9,800 11,625

Annual fixed costs $1,000,000 $1,100,000

Variable cost per unit $30 $45 $294,000 $523,125

Total cost $1,294,000 $1,623,125

Revenue $1,685,600 $1,999,500

Profit $391,600 $376,375

From the above differential analysis, it appears that locating in Omaha would be better and more profitable than locating in Kansas City for the company. This is based on the fact that more profit ($15,225) will be generated with Omaha location than locating in Kansas City.

6 0

3 years ago

Suppose the U.S. Treasury offers to sell you a bond for $687.25. No payments will be made until the bond matures 5 years from no

pantera1 [17]

Answer:

6%

Explanation:

Data provided as per question is as given below:-

Redeemed amount = $1,000

Sale value of Bond = $687.25

Number of year = 5

The computation of interest rate is as shown below:-

Interest rate = (Redeemed amount ÷ Sale value of bond) ^ (1 ÷ Number of Year) - 1

= (1,000 ÷ 747.25) ^ (1 ÷ 5) - 1

= (1.338) ^ (0.2) - 1

= 0.06

= 6%

5 0

3 years ago

Multiple Choice Question 50 When manufacturing overhead costs are assigned to production in a process cost system, they are debi

Zina [86]

Answer:

they are debited to a Work in Process account

Explanation:

The journal entry to record the assignment of manufacturing overhead costs to production in a process cost system is done as follows:

Work - In Process (debit)

Overheads (credit)

5 0

3 years ago

Discuss and develop a theoretical network architecture for a small business in the area that wishes to expand into new facilitie

SVETLANKA909090 [29]

Answer:

The responses can be defined as follows:

Explanation:

The placement is essentially a network infrastructure facility in which a company can charge rent for servers as well as other equipment. A company can choose a site to build a server farm. However, one of the key drivers is the operating expenses for the building, maintenance, and updating of a computer system. We acquire and own the hardware (servers) as well as the software to support your presence online with the collocation, and thus are responsible for the correct setup and customization of a two. According to your needs, it may be possible to also buy a computer network or two to control traffic out into your servers (switching, router, firewalls, VPN devices, etc). The cost of the work for business continuity was often used by private companies over the years. Today, cloud providers particularly attractive among cools.

3 0

3 years ago

In a two-stage activity-based costing model, stage one involves Select one: A. assigning direct costs to cost objects. B. assign

LekaFEV [45]

Answer:

The correct answer is letter "B": assigning indirect resource costs to activity pools.

Explanation:

Activity-based costing or ABC is a managerial accounting method that assigns indirect costs to the products which incur the bulk of those costs. In the manufacturing sector, ABC is mainly used to help measure the true cost of output per unit.

<em>The two-step ABC approach involves assigning indirect costs of support departments -e.g., maintenance, quality control- to pools of production departments in the first step. In the second step, activity costs are combined with the indirect costs and overhead rates are added.</em>

5 0

3 years ago