costacctg13_cf_ch11

costacctg13_cf_ch11 - Chapter 11. Decision Making and...

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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 $200 Buy $210 2. Total relevant costs: Keep $80,000 Replace $53,500 11-18 1. (b) $30,000 increase 2. (b) $85,000 11-19 1. Yes, increases OI by $50,000 2. No, decreases OI by $15,000 3. No, decreases OI by $25,000 11-20 1. $339 2. Making CMCBs has a $410,000 advantage 3. Make CMCBs 11-21 1. $94,680 2. No 3. Relevant costs: A $2,177,480 B $2,171,400 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 14 (CM/machine hour is $9.50 vs. $9.00 for Model 9) 11-24 No, net benefit of closing Alameda Base is $440 million. 11-25 1. OI increases by $7,000 by closing RI store 2. OI increases by $11,000 by opening another store like RI store 11-26 First allocate 1000 machine-hours to Kelly, then allocate remaining 1,000 machine-
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This note was uploaded on 12/28/2011 for the course ACCT 303 taught by Professor Staff during the Spring '08 term at CSU Bakersfield.

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costacctg13_cf_ch11 - Chapter 11. Decision Making and...

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