The difference between EUAC’s of upgrading option and labor-intensive process option

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Answer 1

Question

Chapter 13, Problem 34P

To determine

The difference between EUAC’s of upgrading option and labor-intensive process option

Expert Solution & Answer

Answer to Problem 34P

The difference in EUAC’s is $5,325

Explanation of Solution

Upgrade option

Cost of upgrade = $12,000, i = 15%, n = 9 years

EUAC of upgrade option=Cost×( A/P,i%,n) =12,000×( A/P,15%,9) =12000×0.2095 =$2,515

Labor intensive option

Direct labor cost = $3,500Indirect plant expenses = 60%×3500 = $2,100Office overhead = 40%×(3500+2100) = $2,240

EUAC of labor intensive option=3500+2100+2240 =$7840

Difference in EUAC’s of both options=EUAC of labor option–EUAC of upgrade option = 7840–2515 = $5,325

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Answer 2

Question

Chapter 13, Problem 34P

To determine

The difference between EUAC’s of upgrading option and labor-intensive process option

Expert Solution & Answer

Answer to Problem 34P

The difference in EUAC’s is $5,325

Explanation of Solution

Upgrade option

Cost of upgrade = $12,000, i = 15%, n = 9 years

EUAC of upgrade option=Cost×( A/P,i%,n) =12,000×( A/P,15%,9) =12000×0.2095 =$2,515

Labor intensive option

Direct labor cost = $3,500Indirect plant expenses = 60%×3500 = $2,100Office overhead = 40%×(3500+2100) = $2,240

EUAC of labor intensive option=3500+2100+2240 =$7840

Difference in EUAC’s of both options=EUAC of labor option–EUAC of upgrade option = 7840–2515 = $5,325

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Answer 3

Question

Chapter 13, Problem 34P

To determine

The difference between EUAC’s of upgrading option and labor-intensive process option

Expert Solution & Answer

Answer to Problem 34P

The difference in EUAC’s is $5,325

Explanation of Solution

Upgrade option

Cost of upgrade = $12,000, i = 15%, n = 9 years

EUAC of upgrade option=Cost×( A/P,i%,n) =12,000×( A/P,15%,9) =12000×0.2095 =$2,515

Labor intensive option

Direct labor cost = $3,500Indirect plant expenses = 60%×3500 = $2,100Office overhead = 40%×(3500+2100) = $2,240

EUAC of labor intensive option=3500+2100+2240 =$7840

Difference in EUAC’s of both options=EUAC of labor option–EUAC of upgrade option = 7840–2515 = $5,325

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Answer 4

Question

Chapter 13, Problem 34P

To determine

The difference between EUAC’s of upgrading option and labor-intensive process option

Expert Solution & Answer

Answer to Problem 34P

The difference in EUAC’s is $5,325

Explanation of Solution

Upgrade option

Cost of upgrade = $12,000, i = 15%, n = 9 years

EUAC of upgrade option=Cost×( A/P,i%,n) =12,000×( A/P,15%,9) =12000×0.2095 =$2,515

Labor intensive option

Direct labor cost = $3,500Indirect plant expenses = 60%×3500 = $2,100Office overhead = 40%×(3500+2100) = $2,240

EUAC of labor intensive option=3500+2100+2240 =$7840

Difference in EUAC’s of both options=EUAC of labor option–EUAC of upgrade option = 7840–2515 = $5,325

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Answer 5

Chapter 13, Problem 34P

To determine

The difference between EUAC’s of upgrading option and labor-intensive process option

Expert Solution & Answer

Answer to Problem 34P

The difference in EUAC’s is $5,325

Explanation of Solution

Upgrade option

Cost of upgrade = $12,000, i = 15%, n = 9 years

EUAC of upgrade option=Cost×( A/P,i%,n) =12,000×( A/P,15%,9) =12000×0.2095 =$2,515

Labor intensive option

Direct labor cost = $3,500Indirect plant expenses = 60%×3500 = $2,100Office overhead = 40%×(3500+2100) = $2,240

EUAC of labor intensive option=3500+2100+2240 =$7840

Difference in EUAC’s of both options=EUAC of labor option–EUAC of upgrade option = 7840–2515 = $5,325

Answer 6

Chapter 13, Problem 34P

To determine

The difference between EUAC’s of upgrading option and labor-intensive process option

Expert Solution & Answer

Answer to Problem 34P

The difference in EUAC’s is $5,325

Explanation of Solution

Upgrade option

Cost of upgrade = $12,000, i = 15%, n = 9 years

EUAC of upgrade option=Cost×( A/P,i%,n) =12,000×( A/P,15%,9) =12000×0.2095 =$2,515

Labor intensive option

Direct labor cost = $3,500Indirect plant expenses = 60%×3500 = $2,100Office overhead = 40%×(3500+2100) = $2,240

EUAC of labor intensive option=3500+2100+2240 =$7840

Difference in EUAC’s of both options=EUAC of labor option–EUAC of upgrade option = 7840–2515 = $5,325

Answer 7

Chapter 13, Problem 34P

To determine

The difference between EUAC’s of upgrading option and labor-intensive process option

Answer 8

Expert Solution & Answer

Answer to Problem 34P

The difference in EUAC’s is $5,325

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Upgrade option

Cost of upgrade = $12,000, i = 15%, n = 9 years

EUAC of upgrade option=Cost×( A/P,i%,n) =12,000×( A/P,15%,9) =12000×0.2095 =$2,515

Labor intensive option

Direct labor cost = $3,500Indirect plant expenses = 60%×3500 = $2,100Office overhead = 40%×(3500+2100) = $2,240

EUAC of labor intensive option=3500+2100+2240 =$7840

Difference in EUAC’s of both options=EUAC of labor option–EUAC of upgrade option = 7840–2515 = $5,325

Answer 12

Ch. 13 - Prob. 1QTC Ch. 13 - Prob. 2QTC Ch. 13 - Prob. 3QTC Ch. 13 - Prob. 4QTC Ch. 13 - Prob. 5QTC Ch. 13 - Prob. 1P Ch. 13 - Prob. 2P Ch. 13 - Prob. 3P Ch. 13 - Prob. 4P Ch. 13 - Prob. 5P

The difference between EUAC’s of upgrading option and labor-intensive process option

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The difference between EUAC’s of upgrading option and labor-intensive process option

Answer to Problem 34P

Explanation of Solution

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Chapter 13 Solutions