Fancy Furniture produced a batch of 2,000 coffee tables at a cost of $355,000. It was discovered that the entire batch was finished improperly. Fancy can sell the tables as seconds for $305,000 or spend an additional S315,000 to re-finish them and sell them for $605,000. In deciding whether to re-work the tables or sell them as is, management should:.1. Compare the $315,000 cost to re-finish the tables with the incremental revenue of $300,000 if the tables are re-finished. 2. Compare the $305,000 proceeds from the sale of the tables as is, with the $355.000 cost of the tables. 3. Compare the $605,000 possible revenue from re-finished tables with the total cost of $355,000 + $315,000 to re-finish. 4. Eliminate any alternative that results in a loss on the sale of the product.
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Business, 22.06.2019 02:30, raulramirez01
Acompany factory is considered which type of resource a. land b. physical capital c. labor d. human capital
Answers: 2
Business, 22.06.2019 04:50, garrowe96
Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?
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Business, 22.06.2019 19:30, dominickstrickland
Kirnon clinic uses client-visits as its measure of activity. during july, the clinic budgeted for 3,250 client-visits, but its actual level of activity was 3,160 client-visits. the clinic has provided the following data concerning the formulas to be used in its budgeting: fixed element per month variable element per client-visitrevenue - $ 39.10personnel expenses $ 35,100 $ 10.30medical supplies 1,100 7.10occupancy expenses 8,100 1.10administrative expenses 5,100 0.20total expenses $ 49,400 $ 18.70the activity variance for net operating income in july would be closest to:
Answers: 1
Fancy Furniture produced a batch of 2,000 coffee tables at a cost of $355,000. It was discovered tha...
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