costacctg13_cf_ch11

# costacctg13_cf_ch11 - Chapter 11 Decision Making and...

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

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- hours to Taylor resulting in OI = \$16,000 11-27 1. (a) \$8,000 benefit of buying new machine (b) \$8,000 benefit of buying new machine 2. No affect.

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern