Expando, inc., is considering the possibility of building an additional factory that would produce a new addition to their product line. the company is currently considering two options. the first is a small facility that it could build at a cost of $7 million. if demand for new products is low, the company expects to receive $9 million in discounted revenues (present value of future revenues) with the small facility. on the other hand, if demand is high, it expects $14 million in discounted revenues using the small facility. the second option is to build a large factory at a cost of $8 million. were demand to be low, the company would expect $9 million in discounted revenues with the large plant. if demand is high, the company estimates that the discounted revenues would be $13 million. in either case, the probability of demand being high is .30, and the probability of it being low is .70. not constructing a new factory would result in no additional revenue being generated because the current factories cannot produce these new products.

the best decision to expando is
(a) to build the large facility.
(b) to build the small facility.
(c) to do nothing.

Consider derek's budget information: materials to be used totals $64,750; direct labor totals $198,400; factory overhead totals $394,800; work in process inventory january 1, $189,100; and work in progress inventory on december 31, $197,600. what is the budgeted cost of goods manufactured for the year? a. $1,044,650 b. $649,450 c. $657,950 d. $197,600

You hear your supervisor tell another supervisor that a fire drill will take place later today when the fire alarm sounds that afternoon you should

Nell and kirby are in the process of negotiating their divorce agreement. what should be the tax consequences to nell and kirby if the following, considered individually, became part of the agreement? a. in consideration for her one-half interest in their personal residence, kirby will transfer to nell stock with a value of $200,000 and $50,000 of cash. kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. they purchased the residence three years ago for $300,000.nell's basis for the stock is $ xkirby's basis in the house is $ xb. nell will receive $1,000 per month for 120 months. if she dies before receiving all 120 payments, the remaining payments will be made to her estate. the payments (qualify, do not qualify) as alimony and are (included in, excluded from) nell's gross income as they are received. c. nell is to have custody of their 12-year-old son, bobby. she is to receive $1,200 per month until bobby (1) dies or (2) attains age 21 (whichever occurs first). after either of these events occurs, nell will receive only $300 per month for the remainder of her life.$ x per month is alimony that is (included in, excluded from) nell's gross income, and the remaining $ x per month is considered (child support, property settlement) and is (nontaxable, taxable) to nell.