What qualitative factors would colin consider

Assignment Help Accounting Basics
Reference no: EM132984499

Question - Colin O'Shea has a carpentry shop that employs 4 carpenters. Colin received an order for 1,000 coffee tables. The coffee tables have a round tabletop and four decorative legs. An offer for $500 per table was received. Colin found an unfinished round tabletop that he could buy for $50 each.

The quantitative cost data to make the tabletop is shown below:

Direct materials $10

Direct labor 35

Variable overhead 10

Fixed overhead 7

Required - What qualitative factors would Colin consider before he decides to buy the tabletop or make it?

Reference no: EM132984499

Questions Cloud

Calculate income effect of the dividends on preferred shares : The net income for the year ended December 31, 2020 was $410,000. Calculate income effect of the dividends on preferred shares
What is the maximum purifier should pay for intelair : The all-inclusive cost of sensor production is $700/unit. Purifier currently uses a discount rate of 10%. What is the maximum Purifier should pay for IntelAir
Find the amount of joint costs allocated : Assuming no further processing work is done after the split off point, the amount of joint costs allocated to commercial building lumber (CBL)
What is the sale price : Problem - An item that normally sells for $220 is marked down by 40%. What is the sale price
What qualitative factors would colin consider : Colin received an order for 1,000 coffee tables. What qualitative factors would Colin consider before he decides to buy the tabletop or make it
What are the incremental revenues next year : The new equipment will allow you to make more of your product in the same amount of time.? What are the incremental revenues next year
Should you purchase the stock : Assuming that the stock is currently selling at the market for P80 per share, and the required rate of return is 8%? Should you purchase the stock
What is your incremental cash flow from selling the? machine : If you sell the machine today? (after three years of? depreciation) for $769,000?, what is your incremental cash flow from selling the? machine
Determine the predetermined overhead rate : At the end of the year, it found that actual overhead was $74,000 and manufacturing required 24,000 machine hours. Determine the predetermined overhead rate

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.

  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!

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