What is the value of reworking the action figures

Assignment Help Accounting Basics

Reference no: EM13160103

Toys Ahoy! has 1,000 action figures in inventory that cost $6.25 per unit to produce. Due to changing consumer preferences, the sales department is having great difficulty selling action figures, and Toys Ahoy! must choose between two options. Option 1 is to scrap (dispose of) the action figures at a total cost of $1,000 (for transportation and landfill fees); Option 2 is to rework all of the action figures, at a total cost of $1,200 in labor and materials, and sell them to a local toy store for a total of $750.

a. What is the value of scrapping the action figures?
b. What is the value of reworking the action figures and selling them to the toy store?
c. Is the fact that Toys Ahoy! spent $6.25 to produce each action figure relevant to your value computations?

Reference no: EM13160103

Questions Cloud

What happens to the average fixed costs per paper : If sales fall by 20 percent from 1,000,000 papers per month to 800,000 papers per month, what happens to the Average Fixed Costs per paper?

Calculate the ph of a solution : Calculate the pH of a solution prepared by mixing 250. mL of 0.174 m aqueous HF (density = 1.10 g/mL) with 38.7 g of an aqueous solution that is 1.50% NaOH by mass (density = 1.02 g/mL).

How many atoms are in a sample of molybdenum : How many atoms are in a 256.3 g sample of Molybdenum?

Acceptance for an organization development program : What strategies might be used in gaining acceptance for an organization development program?

What is the value of reworking the action figures : What is the value of reworking the action figures and selling them to the toy store? Is the fact that Toys Ahoy! spent $6.25 to produce each action figure relevant to your value computations?

Which outcome do you expect : If neither signs, both receive a because the professor does not have sufficient evidence to prove cheating. Draw the payoff matrix. Which outcome do you expect? Why?

Determine the heat of formation of sulfuric acid : Determine the heat of formation of sulfuric acid, H2SO4 (l) from the following thermochemical equations: S8(s) + 8 O2(g)-->8SO2(g) H= -2374.6 kJ S8(s) + 12O2(g)-->8SO3(g) H=-3165.8 kJ H2O(l)+SO3(g)-->H2SO4(l) H=-132.3 kJ 2H2(g)+O2(g)-->2H2O(l) H=..

Company forecasts the total overhead : The Thomlin Company forecasts that total overhead for the current year will be $15,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $15,500,000 and the actual machine hours are 220,000 hours.

Explain precipitated with excess par aperiodic acid : The mercury in a 0.7325 gram unknown sample was precipitated with excess par aperiodic acid, H6IO5, according to the following balanced chemical equation:

User Account

All Pages