Which vessel would you choose if there were 2000 TEUS to ship? Select one: O a. Sea-land Eagle O b. A.P. Moller O c. No preference. Which vessel would you choose if there were 3000 TEUS to ship?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Assuming there are two vessels you can choose from to ship containers from the Port of Oakland to Shanghai, China.
The cost and price information of these two vessels is given as below. (TEU: Twenty-foot equivalent unit).
Vessel Name
Fixed cost (\($)
Variable cost per Price per
TEU (1)$)
TEU ($$$)
Sea-land Eagle 1,000
2
3
A.P. Moller
4,000
1
3
Answer the next five questions based on the above information.
Which vessel would you choose if there were 2000 TEUS to ship?
Select one:
O a. Sea-land Eagle
О Б.А.Р. Мoller
O c. No preference.
Which vessel would you choose if there were 3000 TEUS to ship?
Select one:
a. Sea-land Eagle
О Б.А.Р. Мoller
O c. No preference.
Transcribed Image Text:Assuming there are two vessels you can choose from to ship containers from the Port of Oakland to Shanghai, China. The cost and price information of these two vessels is given as below. (TEU: Twenty-foot equivalent unit). Vessel Name Fixed cost (\($) Variable cost per Price per TEU (1)$) TEU ($$$) Sea-land Eagle 1,000 2 3 A.P. Moller 4,000 1 3 Answer the next five questions based on the above information. Which vessel would you choose if there were 2000 TEUS to ship? Select one: O a. Sea-land Eagle О Б.А.Р. Мoller O c. No preference. Which vessel would you choose if there were 3000 TEUS to ship? Select one: a. Sea-land Eagle О Б.А.Р. Мoller O c. No preference.
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Using Marginal costing we can decide which vessel should  be selected.

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