Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Accounting Basics Expert

Accounting


Home >> Accounting Basics

Questions -

Q1. FP Company manufactures fine paint sprayers for commercial painting. FP has the capacity to produce 650 units per month and is currently operating at 92% of capacity. FP's Super Duty Sprayer (SDS) sells for $325 per unit. Total costs to produce a SDS unit are $275 per unit. Monthly fixed costs equal $44,850 per month.

FP Company has received an offer from Spring Inc. to buy 50 Super Duty Sprayers. The special offer is for $250 per unit.

Answer each of the following and show supporting calculations for your answers.

a. What are the relevant costs per unit to analyze this special offer?

b. For the short-run, should FP accept or reject Spring's offer?

c. For the long-run, should FP accept or reject Spring's offer?

Q2. BestCo manufactures radio components. Current production is 10,000 components per year. BestCo is considering incurring additional final inspection costs of $1 per unit before delivery to customers. The additional inspection should reduce the defective rate from 3.0% to 1.0%. If a defective unit is found, it is scrapped at no additional cost and materials cannot be reused. The manufacturing costs before the final inspection are $200 per unit.

Currently external failure costs are $40 per defective unit.

a. Prepare a cost/benefit analysis to justify if management should incur the additional final inspection costs? Show calculations to support your answer.

b. If BestCo were to measure the improvements in the number of defective units, what perspective on the Balanced Scorecard would report this measure?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92761512
  • Price:- $25

Priced at Now at $25, Verified Solution

Have any Question?


Related Questions in Accounting Basics

Thinking of the middle east identify where you encounter

Thinking of the Middle East, identify where you encounter products, services, or food items that should be relatively uniform and are based on standard inputs or costs. Identify the items, their standard components, and ...

Question what is the principle of charity in at least a

Question: What is "The Principle of Charity"? In at least a paragraph, discuss a time that someone did not extend the principle of charity to you or that you did not extend the principle of charity to someone else. What ...

Question - alpha corp was organized on january 2 2018

Question - Alpha Corp., was organized on January 2, 2018. During the first year of operation, Alpha issued 100,000 shares of $1 par value common stock at a price of $50 cash per share. On December 31, 2018, Alpha reporte ...

Question - x company estimates the following for its three

Question - X Company estimates the following for its three products, A, B, and C, for 2018:   A B C Revenue $47,460 $24,303 $63,666 Total variable costs 29,400 18,224 26,136 Fixed costs in 2018 are expected to be $19,800 ...

Question paper 01 ubs tax evasion paperprepare 500-750-word

Question: Paper 01: UBS Tax Evasion Paper Prepare 500-750-word paper in which you address the following: • Discuss the matter of 2008 UBS Tax Evasion charges. • Explain your understanding of their cause, the impact on th ...

Question - marvin services corporation had the following

Question - Marvin Services Corporation had the following accounts and balances: Accounts payable $12,000 Equipment $14,000Accounts receivable 2,000 Land14,000 Buildings? Unearned service revenue 4,000 Cash 6,000 Total st ...

Question - pharoah company traded a used welding machine

Question - Pharoah Company traded a used welding machine (cost $10,260, accumulated depreciation $3,420) for office equipment with an estimated fair value of $5,700. Pharoah also paid $3,420 cash in the transaction. Prep ...

Question 1 calculate the cost per minute for each type of

Question: 1. Calculate the cost per minute for each type of employee. 2. Calculate total costs per patient and price per patient at each level of care. The response must be typed, single spaced, must be in times new roma ...

Question - aqua corporation is a retail operation

Question - Aqua Corporation is a retail operation specializing in pool equipment and outdoor furniture. It is very interested in merging with Icterine Corporation, a lamp manufacturer; Aqua is very profitable and Icterin ...

Question to make your decision you should use research and

Question: To make your decision you should use research and clearly lay out the facts and assumptions. You should then use the tools like IRR, NPV, TVM, Ratio Analysis, etc to analyze the facts. Finally, make a closing s ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved