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Healthy Snacks Inc. buys desserts from a caterer at $16.00 per unit and sells them at coffee shops. They have been thinking about buying an oven so they can make the desserts themselves. They are deciding between an automatic a a semi automatic oven. The semi automatic oven will generate fixed costs for $125,000.00 a year and variable costs per unit (desserts) of $6.00. The automatic oven would generate fixed costs for $200,000.00 yearly and variable costs per unit of $4.5 1. What would be the minimum of units produced by each oven to equal what they now spend with the caterer? 2. What would be the most profitable alternative (of the two ovens) if they were to produce 90,000 units? 3. At what volume would it make no difference which oven to use?
The company nought all of its equipment on January 1, 2009. The equipment has an estimated total residual value of 12,000. The company uses the straight line depreciation method.
Calistoga Produce estimates bad debt expense at ½% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $471,000 and $1,650 respectively, at December 31, 2010.
In Henderson Company, 50,000 units are produced and 40,000 units are sold. Variable manufacturing costs per unit are $6 and fixed manufacturing costs are $120,000. the cost of the ending finished goods inventory under each costing approach is:
What is the key difference between absorption and variable costing? Assuming identical companies (one using absorption costing and the other using variable costing) in their first year of operation, each having the same ending inventory balance, w..
what is the difference between a current liability for an uncertain amount and a contingent liability? give an example
Winter Lips produces a lip balm used for cold-weather sports.
The amount that should be shown as Atwater's diluted earnings per share for 2011 (rounded to the nearest cent) is:
what are some advantages and disadvantages of delegation? why do some managers choose not to delegate? what has been
Prepare a bank reconciliation using B and Bs restaurant supply Inc information for August 31.
How would a Balanced Scorecard for Chadwick Inc differ from ones developed in its divisions, such as the Norwalk Pharmaceutical Division? Do you anticipate that there might be major conflicts between divisional scorecards and those of the corporation..
Variable selling and administrative expenses are $1 per unit, and fixed selling and administrative costs are $3,000 in total. According to generally accepted accounting principles, inventoriable cost per unit of Big would be:
Al's Car Wash purchased a piece of equipment on October 1, 20x7, for $27,000. The equipment has an estimated life of four years or 40,000 units of production and an estimated residual value of $2,000.
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