costacctg13_cf_ch11

costacctg13_cf_ch11 - Chapter 11. Decision Making and...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 11. Decision Making and Relevant Information 11-16 1. Difference in favor of remachining $2,000 2. Difference in favor of rebuilding $5,000 11-17 1. Relevant costs per unit: Make $100 Buy $105 2. Total relevant costs: Keep $40,000 Replace $26,750 11-18 1. (b) $30,000 increase 2. (b) $85,000 11-19 1. Yes, increases OI by $145,500 2. Yes, increases OI by $53,000 3. Yes, increases OI by $65,000 11-20 1. $339 2. Making CMCBs has a $410,000 advantage 3. Make CMCBs 11-21 1. $128,500 2. No 3. Relevant costs: A $2,961,250 B $3,015,500 11-22 1. Cola $4.60 Lemonade $3.90 Punch $6.40 NOJ $9.00 2. Cola $115.00 Lemonade $93.60 Punch $25.60 NOJ $45.00 3. Max total CM per day $1,135.00 11-23 Only Model 18 (CM/machine hour is $13.50 vs. $11.50 for Model 3) 11-24 No, net benefit of closing Alameda Base is $440 million. 11-25 Note: This answer is based on the problem update listed on the errata sheet in the front matter of the solution manual. 1. OI increases by $3,000 by closing Utah store
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/28/2011 for the course ACT 303 taught by Professor Sun during the Spring '11 term at Alvin CC.

Page1 / 2

costacctg13_cf_ch11 - Chapter 11. Decision Making and...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online