User Account

All Pages

What is the capacity cost per tire

Assignment Help Accounting Basics
Reference no: EM132762489

Question - Galena Corporation produces automobile tires. They have a single factory and own the machinery and equipment used to produce the tires. The total capacity cost is $100,000 per year.

Galena's managers estimate that the factory, if run 24 hours per day, every day, could produce 100,000 tires per year. However, given the machinery and equipment need regular maintenance, and employees require holidays, vacation time, and sick time, a more realistic estimate is 80,000 tires per year. Over the past five years, the average demand is 50,000 tires per year. This year, managers anticipate demand of 75,000 tires. What is the capacity cost per tire if managers use theoretical capacity as the basis?

Reference no: EM132762489

Questions Cloud

Discuss the defence that will be raised by Topical Inc : Discuss the defence(s) that will be raised by Topical Inc. and the likelihood of success. Be certain to discuss the applicable legal principles
Which contingent liabilities are : Which Contingent liabilities are? not recognised in the notes to the financial statements because the possibility of an outflow in settlement is remote.
What journal entry recorded by the lessor : What journal entry recorded by the lessor when the first lease payment is received would be? estimated economic life of the leased asset is 5 years
Causes of fires in types of vehicles and vessels : Arson, one of several possible causes of fires in all types of vehicles and vessels, costs millions of dollars annually.
What is the capacity cost per tire : This year, managers anticipate demand of 75,000 tires. What is the capacity cost per tire if managers use theoretical capacity as the basis
What is the net cash inflow from investing activities : Cost $800,000 with accumulated depreciation $500,000 and made a loss of $10,000. What is the net cash inflow (outflow) from investing activities?
Describe what you learned with the department : Prepare and deliver a professional presentation based on the research paper you have been working on all session. Your presentation must be a minimum of 10.
How culture and ethics can impact project : Provide a summary of the articles, and share how culture and ethics can impact the project.
How should the revenue be recognised : Continuously over a 1-year period commencing on 15 May 2020. The buyer pays for all the services on 30 May 2020. How should the revenue be recognised?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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