Ouzts Corporation is considering Altemnative A and Alternative B. Costs associated with the alternatives are listed below:Alternative AlternativeMaterials costsProcessing costsEquipment rentalOccupancy costs$ 42,000$ 38,600$ 13,400$ 15,100$ 56,200$ 38,600$ 13,400$ 22,600What is the financial advantage (disadvantage) of Alternative B over Alternative A?Multiple Cholce$109100$21.700)$130.800< Prev32 of 36Next >其其69°F Mostlype here to searchDELL

While taking decision regarding various alternate , we need to consider the various cost and check…

Answered: Ouzts Corporation is considering…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 1SEQ: Mario Company is considering discontinuing a product. The costs of the product consist of $20,000...

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Mario Company is considering discontinuing a product. The costs of the product consist of $20,000 fixed costs and $15,000 variable costs. The variable operating expenses related to the product total $4,000. What is the differential cost? A. $19,000 B. $15,000 C. $35,000 D. $39,000
Hong Publishing has purchased Lang Publishing. After reviewing titles from both companies, a decision must be made to determine what titles must be dropped. The following information is available to make the decision. A. What Is the total income if all titles were produced? B. If Title X was dropped, what would be the effect on Net Income? C. How much did Title X Contribute to Fixed Costs? D. Determine the cost and the amount that will remain even it Title X is dropped? E. Which costs and amount will be eliminated if Title X is dropped?
Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below: Alternative A Alternative B Materials costs $ 49,000 $ 64,700 Processing costs $ 44,900 $ 44,900 Equipment rental $ 15,500 $ 15,500 Occupancy costs $ 17,400 $ 26,100 What is the financial advantage (disadvantage) of Alternative B over Alternative A? Garrison_16e_Rechecks_2019_10_10 Multiple Choice $126,800 $(24,400) $151,200 $(139,000)
San Juan, Incorporated, is considering two alternatives: A and B. The costs associated with the alternatives are listed below: Alternative A Alternative B Material costs $ 35,000 $ 57,000 Processing costs 36,000 57,000 Building costs 12,000 28,000 Equipment rental 19,000 19,000 Are the materials costs and processing costs differential in the choice between alternatives A and B? Multiple Choice Neither materials costs nor processing costs are differential. Both materials costs and processing costs are differential. Only processing costs are differential. Only materials costs are differential.
Two alternatives, identified X and Y, are under consideration at Hayden Corporation. Costs associated with the alternatives are listed below. What is the total differential costs of Alternative Y over Alternative X? a) $123,000 b) $140,000 c) $34,000 d) $106,000
QRC Company is trying to decide which one of two alternatives it will accept. The costs and revenues associated with each alternative are listed below: Alternative A Alternative B Projected revenue $ 125,000 $ 150,000 Unit-level costs 25,000 36,000 Batch-level costs 12,500 24,000 Product-level costs 15,000 17,000 Facility-level costs 10,000 12,500 What is the differential revenue for this decision? Multiple Choice $50,000 $25,000 $125,000 $150,000
Marky Ltd has two divisions, assembly and electrical. The assembly division transfers partiallycompleted components to the electrical division at a predetermined transfer price. The assemblydivision’s standard variable production cost per unit is $550. This division has spare capacity, and itcould sell all its components to outside buyers at $680 per unit in a perfectly competitive market.Required:a) Determine a transfer price using the general rule.b) How would the transfer price change if the assembly division had no spare capacity? c) What transfer price would you recommend if there was no outside market for the transferredcomponent and the assembly division had spare capacity? d) Explain how negotiation between the supplying and buying units may be used to set transferprices. How does this relate to the general transfer pricing rule?
Hong Publishing has purchased Lang Publishing. After reviewing titles from both companies, a decision must be made to determine what titles must be dropped. The following information is available to make the decision. Title X Title Y Title Z Sales $100,000 $151,000 $201,000 Variable Cost 49,000 74,000 101,000 Contribution Margin $51,000 $77,000 $100,000 Direct Fixed Cost 19,000 30,000 40,000 Allocated Common Fixed Cost 9,000 14,000 20,000 Net Income $23,000 $33,000 $40,000 D. Determine the cost and the amount that will remain even if Title X is dropped. $fill in the blank 6 E. Which costs and amount will be eliminated if Title X is dropped? $fill in the blank 8 $fill in the blank 10
Hong Publishing has purchased Lang Publishing. After reviewing titles from both companies, a decision must be made to determine what titles must be dropped. The following information is available to make the decision. Title X Title Y Title Z Sales $100,000 $151,000 $201,000 Variable Cost 49,000 74,000 101,000 Contribution Margin $51,000 $77,000 $100,000 Direct Fixed Cost 19,000 30,000 40,000 Allocated Common Fixed Cost 9,000 14,000 20,000 Net Income $23,000 $33,000 $40,000 A. What is the total income if all titles were produced? $fill in the blank 1 B. If Title X was dropped, what would be the effect on Net Income? $fill in the blank 2 C. How much did Title X Contribute to Fixed Costs? $fill in the blank 4 D. Determine the cost and the amount that will remain even if Title X is dropped. $fill in the blank 6 E. Which costs and amount will be eliminated if Title X is dropped? $fill in…
Durian Corporation has the following sales and costs structure: Unit sales price, P500 Unit variable costs, P300 Total fixed costs, P8 million Sales volume, 75,000 units Required: 1. Based on the original data, determine the CMR, BEP in pesos, operating profit, MSR, and the DOL. 2. Considering the following options to change the variables of profit, determine the new CMR, BEP in pesos, operating profit, MSR, and DOL. a. Unit sales price decreases by 15%.Unit variable costs decrease by 10%. c. Total fixed costs and expenses decrease by P800,000. d. Quantity sold decreases by 10,000.
hello, please give more emphasis on points a,b,c, and d Spark Ltd has two divisions, assembly and electrical. The assembly division transfers partiallycompleted components to the electrical division at a predetermined transfer price. The assemblydivision’s standard variable production cost per unit is $550. This division has spare capacity, and itcould sell all its components to outside buyers at $680 per unit in a perfectly competitive market.Required:a) Determine a transfer price using the general rule.b) How would the transfer price change if the assembly division had no spare capacity? c) What transfer price would you recommend if there was no outside market for the transferredcomponent and the assembly division had spare capacity? d) Explain how negotiation between the supplying and buying units may be used to set transferprices. How does this relate to the general transfer pricing rule?
how can the changes below affect Mirabel’s overall cost structure. For those changes that are controllable, make a recommendation considering the uncontrollable cost changes. Be certain to consider not only the company’s break-even point, but also the desired margin of safety. If Mirabel purchases the new equipment for $1,200,000, it will increase fixed costs by 10% but will decrease the variable cost per unit for all 3 models by 5%. If Mirabel invests the additional $650,000 in fixed marketing expenses, sales of the Model 301 are expected to increase by 8%. If the projection is that sales will increase by 10% in the coming year. The sales volume remains fixed but there is a 5% increase in variable expenses (materials cost) for the Model 101 and 301, and a 10% increase in variable expenses for Model 201.

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