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Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.15. The machine will increase fixed costs by $18,250 per year. The information they will use to consider these changes is shown here.
Question A. What will the impact be on the break-even point if Flanders purchases the new machinery?
Question B. What will the impact be on net operating income if Flanders purchases the new machinery?
Question C. What would your recommendation be to Flanders regarding this purchase?
The Winston Company estimates that the factory overhead for the following year will be $1,250,000. Determine the over or under applied amount for the year
What was the amount of operating income the flexible budget would have shown for the actual activity level for June? What was the amount of operating income
What do you find out, and what is your initial recommendation? If you don't have enough information, what else would you want to know
The cost of capital is 10% where its cumulative discount (annuity) factor for six years at 10% is 4.355. Calculate the Net Present Value of this project.
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Does the MD&A help you understand why the gross margin percentage changed between fiscal 2011 and fiscal 2010?
Prepare a reconciliation of units and a computation of equivalent units for June for the Cleaning Department.
Explain to the General Manager what transfer pricing is and what are two methods that can be used to set the price between divisions?
Both Return on Investment (ROI) and Economic Value Added (EVA), when used as performance measures in an organisation, encourage managers to be short-term in their focus and decision making".
Determine the maximum total contribution margin the company can make by its best use of the 1,000 available hours. (Do not round intermediate calculations.)
What would be the relevant cost of the materials, in total, for purposes of determining a minimum acceptable price for the order for product GEE?
Why do companies use predetermined overhead rates rather than actual manufacturing overhead cost to apply overhead to jobs?
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