Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 10, Problem 14PB
Daisy Hernandez sells girls christening dresses through the online store, Etsy. Her customers have asked if she has necklaces that could be included with the dress. Daisy found white glossy ceramic hearts from another Etsy vendor for $20. Daisy has the talent and already has a fully
A.Using the provided quantitative cost data to make the heart, should Daisy buy from her fellow Etsy vendor or make it herself?
B. What qualitative factors would be included in your decision.
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Alyssa Stuart is thinking of starting a store that specializes in handmade Viennese style bentwood chairs. Before opening her store, Alyssa is curious about how her profit, revenue, and variable costs will change depending on the amount she charges for the chairs. Alyssa would like you to perform the work required for this analysis and has given you the data. Here are a few things to consider while you perform your analysis:
Current competitive prices for Viennese style bentwood chairs are between $225 and $275 a chair.
Variable costs will be either $100 or $150 a chair depending on the types of material Alyssa chooses to use.
Fixed costs are $10,000 a month.
Create an Excel file containing the following information:
Alyssa's chairs - Price One
Alyssa's chairs - Price Two
Chair Price
$ 225
Chair Price
$ 275
Variable Cost per chair
$ 125
Variable Cost per chair
$ 150
Fixed Cost
$ 10,000
Fixed Cost
$…
Compute the total cost, expected profit, and selling price. Write your solution and answer on the space provided. Show your solution.
1. Lara bought materials for her jewelry business. She bought Php315 beads, and PhP257 bead wire. Her transportation cost about PhP55 and the labor is about PhP40. Her desire profit is 50%.
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Chapter 10 Solutions
Principles of Accounting Volume 2
Ch. 10 - ______ are the costs associated with not choosing...Ch. 10 - Which type of incurred costs are not relevant in...Ch. 10 - The managerial decision-making process has which...Ch. 10 - Which of the following is not one of the five...Ch. 10 - Which of the following is sometimes referred to as...Ch. 10 - Jansen Crafters has the capacity to produce 50,000...Ch. 10 - ______ is the act of using another company to...Ch. 10 - Which of the following is a disadvantage of...Ch. 10 - Which of the following is not a qualitative...Ch. 10 - Which of the following is one of the two...
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