he cost of building an automated assembly line in a factory is P700,000; a manually operated assembly line would cost P250,000.  What economic term is used to describe the P450,000 variation between these two amounts?   Differential cost Sunk cost Marginal cost Out of pocket cost

Q: If the air-conditioning system for a 200,000 ft2 building is estimated to be 400 ft2 per ton and to…

A: Tonne of AC=200000/400 =500

Q: Yasmine co. Can further process process product B to produce Product C. Product B is currently…

A: Product B costs to produce per pound = $ 28 Product B selling cost per pound = $ 30 Product C sell…

Q: Assume that a manufacturer can purchase a needed component from a supplier at a cost of $9.50 per…

A: Make or buy decision needs to be made by the management when an item can either be purchased from…

Q: Two different manufacturing processes are being consideredfor making a new product. The first…

A: The question is based on concept of break even point or break even sales to compare two production…

Q: Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for…

A: The manufacturing corporation sometimes engages in further development of their original product to…

Q: its, a project has total costs of $95,000. The variable cost per unit is $10.80. a) What is the…

A: Total fixed costs square measure the total of all consistent, non-variable expenses an organization…

Q: How much is the savings amount for your chosen alternative if the firm is earning 7% return on its…

A: Machine A   Year PVF @ 7% Cash flow Present Value of Cash flow 5 0.7130          1,500…

Q: Bok Company has limited number of machine hours that it can use for manufacturing two products, A…

A: Since, Both the products have same same selling price. So it is irrelevant in decision making. Also,…

Q: Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for…

A: Differential cost is the additional cost to be incurred for producing the product.

Q: Jersey Ltd uses target costing and has designed a new machine that is estimated to sell on the…

A: Target cost = Estimated selling - Estimated gross profit

Q: A company is planning to manufacture computer desks. The fixed cost will be $60,000 and it will cost…

A:

Q: X Ltd. wants to replace one of its old machines. Three alternative machines namely M1, M2 and M3 are…

A: Cost of indifference point = difference in fixed costs / difference in variable cost    Given  Fixed…

Q: The selling price of a component is 1.3 Riyal with a material cost of 0.6 Riyal. The cost of the…

A: Breakeven quantity=Fixed costContribution per unit

Q: Swifty Corporation can produce 100 units of a necessary component part with the following costs:…

A: Introduction: Materials and supplies devoured during the manufacture of products that are typically…

Q: Sloan Corporation has the following estimates for its new gear assembly product: Price per unit =…

A: There are many factors which effect the profitability of the company. Every company estimates its…

Q: A company has a process that results in 14000 pounds of Product A that can be sold for $8 per pound.…

A: Sales value if sold now = 14,000 x 8 = 112,000   Increase in sales value if processed further =…

Q: A company has already incurred $5,000 of costs in producing 6,000 units of Product XY. Product XY…

A: Given: Current selling price = $15 Further processing cost = $8 Selling price after further…

Q: Suppose that a manufacturer can produce a part for $9.00 with a fixed cost of $5,000. Alternately,…

A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…

Q: Howick Inc. is trying to decide whether to purchase Machine A or Machine B. Below are the associated…

A: Relevant cost is an avoidable cost used for decision-making. These types of costs are based on…

Q: Paradise Manufacturing currently makes one of its parts for a total cost of $3.80 per unit.  This…

A: The decision to buy or manufactures depend on the manufacturing cost associated to desired part…

Q: Carmen Co. can further process Product J to produce Product D. Product J is currently selling for…

A: Formula : Differential revenue = Product D - product J

Q: Suppose that a manufacturer can produce a part for $8.00 with a fixed cost of $3,000. Alternately,…

A: The manufacturing process is a kind of physical activity that includes the conversion of raw…

Q: Vak Corporation has the excess manufacturing capacity to fill a special order from Nash, Inc. Using…

A: Minimum price = Total avoidable fixed cost + Variable costs Total avoidable fixed cost = $37,400 -…

Q: Two currently owned machines are being considered for the production of a part. The capital…

A: Machine A Amount in P Production rate (Parts/hr)                                    100.00 Hours…

Q: Carmen Co. can further process Product J to produce Product D. Product J is currently selling for…

A: Solution..   Cost of product J = $15.25    Additional cost = $9.05    Cost of production D   = Cost…

Q: Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for…

A: Differential cost of producing Product C = Cost of product C - Cost of product  B where, Cost of…

Q: use either of two processes.  One would entail a variable cost of P17 per unit and an annual fixed…

A: A B C D E F 1. Internal 1           2.  Fixed cost 200,000         3. Variable cost 17…

Q: Peggy Lane Corp., a producer of machine tools, wants to move to a larger site. Two alternative…

A: Break Even Quantity is the quantity at where the sales revenue and total cost are equal. The…

Q: A department makes a product whose contribution per unit is £1,000, and which takes 20 hours machine…

A:

Q: Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for…

A: Solution..   Differential cost of producing Product C  Cost of producing Product B  = $28   Cost of…

Q: A manufacturing firm is considering two locations for a plant to produce a new product. The two…

A: Cost of indifference = Difference in Fixed Cost / Difference in variable cost

Q: McPupper Steel has products that cost $10,500 to manufacture. The products can be sold as is for…

A: Incremental profit is the profit or loss associated with the change in the decision. The positive…

Q: A firm plans to begin production of a new small appliance. The manager must decide whether to…

A: In order to choose between the alternatives we need to find indifference point. Here Indifference…

Q: asmin Co. can further process Product B to produce Product C. Product B is currently selling for $34…

A: Differential cost indicates the additional cost to be incurred for producing the other product.

Q: Peggy Lane Corp.., a producer of machine tools, wants to move to a larger site. Two alternative…

A: Note: “Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: It costs Concord Corporation $28 of variable costs and $16 of allocated fixed costs to produce an…

A: The firm has excess capacity, So fixed cost will not be affected and income can be calculated by…

Q: Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase…

A: While making decision in respect of making or buying, the cost which will increase or decrease shall…

Q: The cost of producing a small transistor radio set consists of P22.00 for labor and P36.00 for…

A: Total variable cost = labor + materials  + variable cost = P22.00 + P36.00 + P1.50 = P59.50

Q: The Borstal Company has to choose between two machines that do the same job but have different…

A: Machine A initial cost =40000 discount rate =6% Present value FACTOR =1-(1+r)^-n/r  Present value…

Q: Use the following information and explain that how the reduction in selling price would affect the…

A: Margin of safety refers to the variation between the actual sales and break-even sales.

Q: Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for…

A: Differential cost: Differential cost is the analysis of the costs in different avenues, which could…

Q: Carmen Co. can further process Product J to produce Product D. Product J is currently selling for…

A: Differential cost alludes to the contrast between the expense or cost of two alternative choices.…

Q: CleanTech manufactures equipment to mitigate the environmental effects of waste. (a) If Product A…

A: a.

Q: Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for…

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: A company can sell all the units it can produce of either Product A or Product B but not both.…

A: Product A Product B contribution margin PER UNIT $16 $30 divide by: machine hours required per…

Q: Suppose that a manufacturer can produce a part for $8.00 with a fixed cost of $6,000. Alternately,…

A: Make or buy decision is an important managerial decision, in this decision management need to…