Variable Cost: The Variable cost is that cost which varies with increase or decrease in the level of production. The Variable cost of per unit remains same. Here, it can be said that variable cost has the positive relationship with output of production. To identify: production line should be upgrade or not.

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Answer 1

Question

Chapter 11, Problem 11.28E

1.

To determine

Variable Cost:

The Variable cost is that cost which varies with increase or decrease in the level of production. The Variable cost of per unit remains same. Here, it can be said that variable cost has the positive relationship with output of production.

To identify: production line should be upgrade or not.

2.

To determine

Fixed Cost:

The Fixed cost is that cost which does not change with increase or decrease in the level of the production, but per unit fixed changes with change in the level production. Examples of the fixed cost are rent, wages and insurance.

To identify: The maximum one time equipment cost that company is will to pay replace instead of upgrade of equipment

3.

To determine

Minimum number of desk to be produces and sold if equipment is upgraded

4.

To determine

To identify: acceptability of alternatives

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Answer 2

Question

Chapter 11, Problem 11.28E

1.

To determine

Variable Cost:

The Variable cost is that cost which varies with increase or decrease in the level of production. The Variable cost of per unit remains same. Here, it can be said that variable cost has the positive relationship with output of production.

To identify: production line should be upgrade or not.

2.

To determine

Fixed Cost:

The Fixed cost is that cost which does not change with increase or decrease in the level of the production, but per unit fixed changes with change in the level production. Examples of the fixed cost are rent, wages and insurance.

To identify: The maximum one time equipment cost that company is will to pay replace instead of upgrade of equipment

3.

To determine

Minimum number of desk to be produces and sold if equipment is upgraded

4.

To determine

To identify: acceptability of alternatives

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 11, Problem 11.28E

1.

To determine

Variable Cost:

The Variable cost is that cost which varies with increase or decrease in the level of production. The Variable cost of per unit remains same. Here, it can be said that variable cost has the positive relationship with output of production.

To identify: production line should be upgrade or not.

2.

To determine

Fixed Cost:

The Fixed cost is that cost which does not change with increase or decrease in the level of the production, but per unit fixed changes with change in the level production. Examples of the fixed cost are rent, wages and insurance.

To identify: The maximum one time equipment cost that company is will to pay replace instead of upgrade of equipment

3.

To determine

Minimum number of desk to be produces and sold if equipment is upgraded

4.

To determine

To identify: acceptability of alternatives

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 11, Problem 11.28E

1.

To determine

Variable Cost:

The Variable cost is that cost which varies with increase or decrease in the level of production. The Variable cost of per unit remains same. Here, it can be said that variable cost has the positive relationship with output of production.

To identify: production line should be upgrade or not.

2.

To determine

Fixed Cost:

The Fixed cost is that cost which does not change with increase or decrease in the level of the production, but per unit fixed changes with change in the level production. Examples of the fixed cost are rent, wages and insurance.

To identify: The maximum one time equipment cost that company is will to pay replace instead of upgrade of equipment

3.

To determine

Minimum number of desk to be produces and sold if equipment is upgraded

4.

To determine

To identify: acceptability of alternatives

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 11, Problem 11.28E

1.

To determine

Variable Cost:

The Variable cost is that cost which varies with increase or decrease in the level of production. The Variable cost of per unit remains same. Here, it can be said that variable cost has the positive relationship with output of production.

To identify: production line should be upgrade or not.

2.

To determine

Fixed Cost:

The Fixed cost is that cost which does not change with increase or decrease in the level of the production, but per unit fixed changes with change in the level production. Examples of the fixed cost are rent, wages and insurance.

To identify: The maximum one time equipment cost that company is will to pay replace instead of upgrade of equipment

3.

To determine

Minimum number of desk to be produces and sold if equipment is upgraded

4.

To determine

To identify: acceptability of alternatives

Answer 6

Chapter 11, Problem 11.28E

1.

To determine

Variable Cost:

The Variable cost is that cost which varies with increase or decrease in the level of production. The Variable cost of per unit remains same. Here, it can be said that variable cost has the positive relationship with output of production.

To identify: production line should be upgrade or not.

Answer 7

Chapter 11, Problem 11.28E

1.

To determine

Variable Cost:

The Variable cost is that cost which varies with increase or decrease in the level of production. The Variable cost of per unit remains same. Here, it can be said that variable cost has the positive relationship with output of production.

To identify: production line should be upgrade or not.

Answer 8

2.

To determine

Fixed Cost:

The Fixed cost is that cost which does not change with increase or decrease in the level of the production, but per unit fixed changes with change in the level production. Examples of the fixed cost are rent, wages and insurance.

To identify: The maximum one time equipment cost that company is will to pay replace instead of upgrade of equipment

Answer 9

2.

To determine

Fixed Cost:

The Fixed cost is that cost which does not change with increase or decrease in the level of the production, but per unit fixed changes with change in the level production. Examples of the fixed cost are rent, wages and insurance.

To identify: The maximum one time equipment cost that company is will to pay replace instead of upgrade of equipment

Answer 10

3.

To determine

Minimum number of desk to be produces and sold if equipment is upgraded

Answer 11

3.

To determine

Minimum number of desk to be produces and sold if equipment is upgraded

Answer 12

4.

To determine

To identify: acceptability of alternatives

Answer 13

4.

To determine

To identify: acceptability of alternatives

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 11 - Prob. 11.1Q Ch. 11 - Define relevant costs. Why are historical costs...Ch. 11 - All future costs are relevant. Do you agree? Why?Ch. 11 - Distinguish between quantitative and qualitative...Ch. 11 - Describe two potential problems that should be...Ch. 11 - Variable costs are always relevant, and fixed...Ch. 11 - A component part should be purchased whenever the...Ch. 11 - Prob. 11.8Q Ch. 11 - Managers should always buy inventory in quantities...Ch. 11 - Management should always maximize sales of the...

Minimum number of desk to be produces and sold if equipment is upgraded

To identify: acceptability of alternatives

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Chapter 11 Solutions