Basiclang Company is assessing whether to sell its unused car parts for P27,000. The parts were previously purchased for P100,000. The company will incur refurbishing costs of P15,000 to be able to sell them. Which alternative should the company pursue? O The company is indiferrent O Sell, there is an incremental benefit of P27,000 O Don't sell, it will incur a loss of P73,000 O Sell there is an incremental benefit of P12.000
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- Kando Company incurs a $9 per unit cost for Product A, which it currently manufactures and sells for $13.50 per unit. Instead of manufacturing and selling this product, the company can purchase it for $5 per unit and sell it for $12 per unit. If it does so, unit sales would remain unchanged and $5 of the $9 per unit costs of Product A would be eliminated. Should the company continue to manufacture Product A or purchase it for resale?6. The Lanterm Corporation has 1,000 obsolete lanterns that are carried in inventory at a manufacturing cost of P20,000. If the lanterns are re-machined for P5,000, they could be sold for P9,000. Ifthe lanterns are scrapped, they could be sold for P1,000. What alternative is more desirable and what are the total relevant costs for the alternative? a. Re-machine and P5,000. b. Re-machine and P25,000. c. Scrap and P20,000. d. Neither, as there is an overall loss under either alternatives. < O O1. Your company has a customer who is shutting down a production line, and it is your responsibility to dispose of the extrusion machine. The company could keep it in inventory for a possible future product and estimates that the reservation value is $100,000. Your dealings on the secondhand market lead you to believe that if you commit to a price of $200,000, there is a 0.5 chance you will be able to sell the machine. If you commit to a price of $300,000, there is a 0.2 chance you will be able to sell the machine. If you commit to a price of $400,000, there is a 0.15 chance you will be able to sell the machine. These probabilities are summarized in the following table. For each posted price, enter the expected value of attempting to sell the machine at that price. (Hint: Be sure to take into account the value of the machine to your company in the event that you are not be able to sell the machine.) Posted Price Probability of Sale Expected Value ($) ($) $400,000 0.15 $300,000 0.2…
- 6. The Lantern Corporation has 1,000 obsolete lanterms that are carried in inventory at a manufacturing cost of P20,000. If the lanterns are re-machined for PS,000, they could be sold for P9,000. If the lanterns are scrapped, they could be sold for P1,000. What alternative is more desirable and what are the total relevant costs for the alternative? a. Re-machine and PS,000. b. Re-machine and P25,000. c. Scrap and P20,000. d. Neither, as there is an overall loss under either altematives.Consider the case of the Cast Iron Company. On each nondelinquent sale, Cast Iron receives reveneues with a present value of $1,260 and incurs costs with a present value of $1,000. Cast Iron's costs have increased from $1,000 to $1,110. Assuming there's no probabililty of repeat ordes and that the probability of successful collection from the customer is p=0.95, A) What is the expected profit of granting credit? (don't round intermediate calculations. Round answer to 2 decimals) B) What is the break-even probability of collection?An auto repair company needs a new machine that will check for defective sensors. The machine has an Initial investment of $224,000. Incremental revenues, including cost savings, are $120,000, and Incremental expenses, including depreciation, are $50,000. There is no salvage value. What is the accounting rate of return (ARR)?
- A company is trying to decide whether to buy a new delivery truck to replace their old one. The old truck originally cost $32,000. The new truck will cost $45,000. If they buy the new truck, they will sell the old truck to a used truck dealer for $4,000. Based on the information given, what is the immediate total incremental cost or benefit of buying the new truck? (Indicate a net benefit as a positive number and a net cost as a negative number.)Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below: Alternative A Alternative B Materials costs $ 49,000 $ 64,700 Processing costs $ 44,900 $ 44,900 Equipment rental $ 15,500 $ 15,500 Occupancy costs $ 17,400 $ 26,100 What is the financial advantage (disadvantage) of Alternative B over Alternative A? Garrison_16e_Rechecks_2019_10_10 Multiple Choice $126,800 $(24,400) $151,200 $(139,000)sheffield corp has several outdated computers that cost a total of 19400 and could be sold as scrap for 6000. they could be updated for additonal 2500 and sold. if sheffield updates the computers and sells them net income will increase by 9000. what amount would be considered sunk costs a)2500 b)21900 c)9000 d)19400
- The Lantern Corporation has 1,000 obsolete lanterns that are carried in inventory at a manufacturing cost of P20,000. If the lanterns are remachined for P5,000, they could be sold for P9,000. Alternatively, the lanterns could be sold for scrap for P1,000. Which alternative is more desirable and what are the total relevant costs for that alternative?It is being decided whether the company is buying a delivery truck worth 25000 USD, which can be rented out to other warehouses in your area. For a useful life of 15 yrs, it is projected that you can earn as much as 3100 USD. At the end of its useful life, the salvage value is zero. Disregarding taxes, the ROR is projected to be approximately equal to: 7.1% 6.5% 5.3% 4.2% Other:Yeye co. is considering dropping a product. Variable cost is P60.00 per unit. Fixed overhead costs, exclusive of depreciation, have been allocated at a rate of P3.50 per unit and will continue whether or not production ceases. Depreciation on the equipment is P60,000 a year. If production is stopped, the equipment can be sold for P300,000, if production continues, however, it will be useless at the end of 1 year and will have no salvage value. The selling price is P100 a unit. Ignoring taxes, the minimum number of units to be sold in the current year to break even on a cash flow basis is