Determine the monthly volume

Assignment Help Cost Accounting
Reference no: EM13503721

Automatic versus Manual Processing

Photo Station Company operates a printing service for customers with digital cameras. The current service, which requires employees to download photos from customer cameras, has monthly operating costs of $6,000 plus $0.20 per photo printed. Management is evaluating the desirability of acquiring a machine that will allow customers to download and make prints without employee assistance. If the machine is acquired, the monthly fixed costs will increase to $10,000 and the variable costs of printing a photo will decline to $0.04 per photo.

(a) Determine the total costs of printing 20,000 and 50,000 photos per month.

Units      Current Process  Proposed Process

20,000 $Answer $Answer
50,000 $Answer $Answer

(b) Determine the monthly volume at which the proposed process becomes preferable to the current process.

 

Reference no: EM13503721

Questions Cloud

The cache uses mesi cache coherence protocol : Consider a 256KB, 4-­-way set associative cache using 64-­-byte lines and LRU replacement using counters). The cache uses MESI cache coherence protocol. Addresses are 32-­-bits. Express your answers in bytes or KB kilobytes).
What is the intensity of the sound at given point : at point A, 3.00 m from a small source of sond that is emitting uniformly in all directions, the sound level is 53.0 dB. what is the intensity of the sound at point A
A molecular formula of phosphorus oxide given the molar mass : A 1.000g sample of red phosphorus powder was burned in air and reacted with oxygen gas to give 2.291g of phosphorus oxide. Calculate the empirical formula & molecular formula of phosphorus oxide given the molar mass is approximately 282 g/mol
Problems associated with the costing system : What is an ABC system and what are the problems associated with the costing system currently used by the clinic and how will an ABC system overcome these problems?
Determine the monthly volume : Determine the monthly volume at which the proposed process becomes preferable to the current process.
What is the spheres linear displacement : A spherical mass on a rod of length L rotates rigidly about a fixed axis at the opposite end of the rod. What is the sphere's linear displacement
Evaluate the volume of h2 formed : The heat generated in this reaction helps melt away obstructions such as grease, and the hydrogen gas released stirs up the solids clogging the drain. Calculate the volume of H2 formed
Explain the lowest frequency of a large organ pipe : The speed of sound in air is 344 m/s at room temperature. The lowest frequency of a large organ pipe is 30 s^-1 and the highest frequency of a piccolo is 1.5*10^4 s^-1
Why need financial statement calculations : BLB Enterprises is located in France and has been in business for several years. They use IFRS to prepare their financial statements and have a calendar year accounting period (January 1 - December 31).

Reviews

Write a Review

Cost Accounting Questions & Answers

  Compute accrual and cash incomein its first year of

compute accrual and cash incomein its first year of operations harden co. earned 39000 in revenues and received 33000

  Utilizing cost allocation methods

Decision making in companies is often facilitated by utilizing cost allocation methods.

  What is stewarts year-end basis

What is Stewarts year-end basis in his partnership interest

  Q the sunrise hotel has 200 rooms each room rents at 110

q the sunrise hotel has 200 rooms. each room rents at 110 per night and variable costs total 16 per room per night of

  1 your company has recently implemented a standard costing

1. your company has recently implemented a standard costing system.nbsp among the results from the first month are the

  Evaluate the price would crede charge to maximize revenues

Evaluate the price would Crede charge to maximize revenues? and What price should Crede charge to maximize profits?

  On february 2007 reflection corporation purchased a parcel

on february 2007 reflection corporation purchased a parcel of land as a factory site for 50000. an old building on the

  Why is a cash budget so vital to a company

Why is a Cash Budget so vital to a company - what are the five basic principles of cash management that a company can follow in order to improve its chances of having adequate cash?

  What would be your holding period return

Determine the growth rate of the company for each of next three years and everything else will be unchanged but the required rate on equity will decrease to 14%. What would be your holding period return for the year?

  Determine the machine hour absorption rate for cost center

Determine the machine hour absorption rate for cost centre P1, and the direct labor hour absorption rate for cost centre P2.

  Calculate the overall effects of these transactions

Calculate the overall effects of these transactions on the store's reported income for 2014

  Dq 01explain how full-absorption costing can be abused by

dq 01explain how full-absorption costing can be abused by management to misstate financial results.dq 02explain how cvp

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd