What are the volume ranges

Assignment Help Managerial Accounting
Reference no: EM132906239

Question - Palmetto Bay Machine Shop has a contract for 12,000 units of a new product. Samsung Jordan, the owner, has calculated the cost for three process alternatives. Fixed costs will be: for A equipment (A), $100,000; B manufacturing (B), $70,000; and C automation (C), $60,000. Variable costs will be: A, $2; B, $4; and C, $5.

a) What are the volume ranges where each process should be used?

b) Based on above question (a), which alternative should he choose?

Reference no: EM132906239

Questions Cloud

Prepare the journal entries related to the investment : Prepare the journal entries related to the investment in bonds using the original data (Bonds held as FA @ FVOCI)
Calculate dividend yield and capital gains yield : You purchased 300 shares of IXC Technologies, Inc. stock at a price of $9.00 per share. Calculate dividend yield and capital gains yield
What are the arguments in favor : What are the arguments in favor of this being a significant deficiency? Material Weakness? Not a problem
How much is the total amount of intangible asset : How much is the total amount of intangible asset shall Rey Company recognize in relation to the above costs
What are the volume ranges : Fixed costs will be: for A equipment (A), $100,000; B manufacturing (B), $70,000; and C automation (C), $60,000. What are the volume ranges
How much is the correct amount that Beyonce Inc report : State incorporation fees and legal costs related to organizing the corporation: 100,000. How much correct amount that Beyonce, Inc. report as Intangible Assets
Organization which celebrates diversity : Cultural competence refers to your ability to relate to those from other cultures. Do some research and find company or organization which celebrates diversity
Journalize the entry to record the flow of costs : On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct materials
Zero trust is security stance for networking : Zero trust is a security stance for networking based on not trusting any users, devices, or applications by default, even those that are already on the network.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What costs are relevant to the decision

Offers to purchase 2,500 units at $16 each. If the special offer is accepted and produced with unused capacity, what costs are relevant to the decision?

  Prepare production budget for abc company for july to dec

As a Management Accountant, what would be your advice to the company management during the COVID-19 pandemic when making budget decisions?

  Journalize the entry to record the factory overhead

Utilities cost, $16,000; and factory depreciation, $54,000. Journalize the entry to record the factory overhead incurred during April

  How might the workers use activity-based cost information

Should this information be shared with the municipal workers? Why or why not? How might the workers use the activity-based cost information

  Prepare a direct materials purchases budget in rand amounts

Bokgoni Corporation, Prepare a direct materials purchases budget in Rand Amounts for July, August, and September and in total for the quarter.

  Find What are the four bases for setting a transfer price

What are the four bases for setting a transfer? price?Decision? making, services,? market, and administered/ Cost, administered,? services, and decision making

  Prepare a work sheet for printer repair company

The Trial Balance of the Printer Repair Company, prepare a work sheet for Printer Repair Company. Arrange the accounts in their approximate usual order.

  Journalize the august transactions

During August, Journalize the August transactions. McNally Company manufactures a nutrient, Everlife, through two manufacturing processes

  What the standard labor-hours per unit of output is

Direct labor workers were paid $8 per hour and total wages were $182,000. The labor rate variance was zero. The standard labor-hours per unit of output is

  What is the fixed costs of operating

The cost corresponding to the highest activity is 16, 300 and the cost related to the lowest activity is 11,100 cost. What is the fixed costs of operating

  What is the target unit cost

Portland Equipment Company, If company management desires a return equal to 10 percent of the final selling price, what is the target unit cost?

  What is the budgeted production (in units) for 2012

the desired December 31 2012 inventory is 8000 units. what is the budgeted production (in units) for 2012

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