What is the opportunity cost of the machine

Assignment Help Managerial Accounting
Reference no: EM133059912

Question - Suppose Peony Nectars has a machine for which it paid $150,000 several years ago and is currently not being used. It can use the machine to produce 12 oz. bottles of its juice cocktails or 12 oz. bottles of its? 100% juices. The contribution margin from the additional sales of? 100% juice would be $90,000. A third alternative is selling the machine for cash of $75,000.

Required - What is the opportunity cost of the machine when we analyze the alternative to produce 12 oz. bottles of juice? cocktails?

Reference no: EM133059912

Questions Cloud

What is the annual interest tax shield generated : a) What is the annual interest tax shield generated by this debt?
What is biggest challenge in terms of expenses : 1. Calculate how much food you are wasting in your home. Statistically, each resident in UAE is wasting annually approximately 197 kg of food.
What is the retailer effective cost of trade credit : What is the retailer's effective cost of trade credit? Assume a 365-day year. Do not round intermediate calculations. Round your answer to two decimal places.
Estimate expected spot rate of singapore dollars : The spot rate of the S3 is $0.50, and the Singapore and US interest rates are 4% and 6% per annum respectively. Assume that 360 days in a year. 3.
What is the opportunity cost of the machine : Required - What is the opportunity cost of the machine when we analyze the alternative to produce 12 oz. bottles of juice? cocktails
Advantages-disadvantages of renting or buying property : Marvin is currently renting and has saved up what he considers a sufficient home deposit. Outline the various advantages and disadvantages of renting or buying
Calculate the market value of irsdb11 swap : Assume that the following swap instruments are available. The applicable interest rate for the floating side of the swap is 5.02%. Today is March 15, 2002 and t
What is the annual cycle stock cost for exporting soybeans : China's annual demand of soybeans is normally distributed with an average of 66436275 tons. What is the annual cycle stock cost for exporting soybeans
Critically evaluate the contribution made to business : Critically evaluate the contribution made to business effectiveness through quality management practices &supply chain procedures

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Estimated annual net cash inflows

The percentage decrease in the estimated annual net cash inflows that would cause the company's management to reject the project from a financial perspective

  What the amount of net sales on income statement would be

What the amount of net sales on the income statement would be? Sales returns & allowances $9000. Operating expenses $60000

  Prepare a vertical analysis of the income statement

Income statement information for Einsworth Corporation follows: Prepare a vertical analysis of the income statement for Einsworth Corporation

  What is the structure of the market

What is the structure of the market and does the business have pricing power? Is there sufficient product differentiation among the competitors?

  Calculate the payback period for the solar panels

Discuss whether the company should consider the project or reject the project. Calculate the payback period for the solar panels.

  Prepare general journal entry to recor transactions for july

On 1 July 2014 NSW Ltd purchased manufacturing equipment for 805,000. Prepare general journal entries to record transactions from 1 July 2014 to 1 July 2018.

  Compute the degree of operating leverage at last year

Compute the degree of operating leverage at last year's sales level. Northwood Company manufactures basketballs. The company has a ball that sells for $25.

  What is the project PI

A project has an initial cost of $40,000, expected net cash inflows of $10,000 per year for 12 years, and a cost of capital of 12%. What is the project's PI

  Determine the inns break-even point

Determine the inn's break-even point in number of rented rooms per month and dollars and calculate the break-even point in (1) dollars and (2) number of fares.

  Explain methods that may be used to allocate support costs

Explain methods that may be used to allocate support costs within organizations containing multiple support departments. If you were given a choice

  Solve the activity rates that would be used to assign costs

Solve the activity rates that would be used to assign costs to each product. If required, round your answers to the nearest cent.

  How much is the bond worth today

Suppose a bond will pay $1000 ten years from now. If the going interest rate on these 10 year bonds is 5.5%. How much is the bond worth today

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