A year ago crunchy cola corporation bought a stamping

Reference no: EM13599713

A year ago, Crunchy Cola Corporation bought a stamping machine to make the cans for its cola. The cost of the machine was $60,000. The machine has a useful life of 5 years and a salvage value of zero at the end of those five years. Annual depreciation on the machine is $12,000. One year of depreciation has been recorded. The variable manufacturing cost of producing the cans is $0.05 per can. The only fixed manufacturing cost is the annual depreciation of $12,000 on the stamping machine. Crunchy needs 200,000 cans annually. Dagmar Stamping Company recently gave Crunchy an offer to supply all of its can needs for the next four years at $0.07 per can. If Crunchy buys from Dagmar, the stamping machine would not be needed and would be sold for $35,000. If Crunchy buys from Dagmar, what will be the total dollar increase or decrease in income for the next four years?

Reference no: EM13599713

Questions Cloud

The comparison of deposits per the bank statement with : the following information is available to assist you in preparing a bank reconciliation for calico corners on may 31

Reflect upon what you have learned during this course and : reflect upon what you have learned during this course and discuss in detail the benefits of using these software

Frogue corporation uses a standard cost system the : 1 agnew corporation uses a standard cost system. the following information was provided for the period that just ended

What is the normal procedure for handling the collection : what is the normal procedure for handling the collection of accounts receivable previously written off using the direct

A year ago crunchy cola corporation bought a stamping : a year ago crunchy cola corporation bought a stamping machine to make the cans for its cola. the cost of the machine

Division w of comer company has sales of 840000 cost : division w of comer company has sales of 840000 cost ofgoods sold of 500000 operating expenses of 256000 andinvested

Carolina catsup company produces catsup which it sells : carolina catsup company produces catsup which it sells exclusively to fast-food restaurants in 5-gallon containers

Kendra companys standard labor cost of producing one unit : kendra companys standard labor cost of producing one unit of product dd is 4 hours at the rate of 14.04 per hour.

What are at least four depreciation methods that are : what are at least four depreciation methods that are available to a company?what are their similarities and

User Account

All Pages