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ACC 561 Week 6 Math

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ACC 561 Week 6 Math

Week 6

A major accounting contribution to the managerial decision-making process in evaluating possible courses of action is to

In incremental analysis,

 

Incremental analysis is most useful

It costs Garner Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 3,000 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Garner has sufficient unused capacity to produce the 3,000 scales. If the special order is accepted, what will be the effect on net income?

Tex’s Manufacturing Company can make 100 units of a necessary component part with the following costs:
 


If Tex’s Manufacturing Company purchases the component externally, $20,000 of the fixed costs can be avoided. At what external price for the 100 units is the company indifferent between making or buying?

NF Toy Company is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $24 and NF Toy would sell it for $52. The cost to assemble the product is estimated at $17 per unit and the company believes the market would support a price of $68 on the assembled unit. What decision should NF Toy make?

A company decided to replace an old machine with a new machine. Which of the following is considered a relevant cost?

 

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