Hildesheim Company has 2,000 obsolete light fixtures that are carried in inventory at a manufacturing cost of $30,000. If the fixtures are reworked for $10,000, they could be sold for $18,000. Alternately, the light fixtures could be sold for $3,000 to a jobber located in a distant city. If the fixtures are reworked and sold, the opportunity cost would be: $40,000 $10,000 $13,000 $30,000 $3,000
Hildesheim Company has 2,000 obsolete light fixtures that are carried in inventory at a manufacturing cost of $30,000. If the fixtures are reworked for $10,000, they could be sold for $18,000. Alternately, the light fixtures could be sold for $3,000 to a jobber located in a distant city. If the fixtures are reworked and sold, the opportunity cost would be: $40,000 $10,000 $13,000 $30,000 $3,000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter17: Activity Resource Usage Model And Tactical Decision Making
Section: Chapter Questions
Problem 19E: Walloon Company produced 150 defective units last month at a unit manufacturing cost of 30. The...
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Hildesheim Company has 2,000 obsolete light fixtures that are carried in inventory at a
- $40,000
- $10,000
- $13,000
- $30,000
- $3,000
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