What sales price per unit would cause carolina

Assignment Help Financial Accounting
Reference no: EM132479000

Point 1: Carolina Vineyards is considering two alternative production methods for turrang grapes into wine. One method calls for using a hand-operated press, while the other would employ a new, automated press. It has been estimated that the variable cost per bottle will amount to $2.00 using the old press and $0.50 using the new machine. If the new machine is purchased, fixed operating costs will equal $150,000, and interest charges will be $80,000. Fixed operating costs of 525,000 will be incurred if the company decides to use the old press. and interest costs will be zero because no debt will be needed. Assume that sales fin units) will be 100,000 bottles under the automated method and 75.000 units under the labor intensive method.

Question 1: What sales price per unit would cause Carolina to be indifferent between the two methods?

a) $2.00

b) $2.20

c) $4.00

d) $4.20

e) $6.00

Reference no: EM132479000

Questions Cloud

Compute the current break-even point in units : Compute the current break-even point in units, and compare it to the break-even point in units if Mary's ideas are used
Prepare the appropriate entries for Yard Art : Yard Art guaranteed a residual value of $4,000. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2022
Record each transactions of the general journal : Apr. 12 Performed services for $3,200 in cash, and $1,200 on credit.19Paid electric bill, $225. Record each transactions of the general journal
Government raise taxes to achieve its objective : The MPC is 0.89. By how much should the government raise taxes to achieve its objective? round to nearest second decimal
What sales price per unit would cause carolina : 75.000 units under the labor intensive method. What sales price per unit would cause Carolina to be indifferent between the two methods?
Entire business sector of the economy : Assume that for the entire business sector of the economy there is $1 worth of investment projects that will yield an expected rate of return of 25 percent
What percentage did the store offer for each set purchased : If Mark bought two pairs of pants and two suit coats for a total of $558, what percentage did the store offer for each set purchased
Make the necessary journal entry : Make the necessary journal entry, or entries, to record the spoiled units. If the spoilage is normal it is assigned to an overhead control account
Determine what is the full product cost : Determine What is the minimum acceptable bid per unit on this one-time-only special order? Determine What is the full product cost?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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