HW 23 - 3 they lose $20 since they are currently at idle...

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Jack Meehan 12/4/2007 Accounting 152 P12-31, C12-35 Section 11 P12-31 Variable cost per board 120 Fixed Cost per board 30  Capacity = 800,000   boards  Board Damico 190 580  120 420  70 160  1 Cost Benefit Analysis Cost Benefit Analysis  $(160.00) Benefit  $(20.00) Total  $(180.00) NO, they will reject is since it has a negative benefit. 2 For the company, it would be advantageous since the board would gain $70, and Damico will lose $20.  Thus, a total of $50 will be made.
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Unformatted text preview: 3 they lose $20 since they are currently at idle capacity 4 The decision should be made based on whether both decisions are operating at idle capacity , or if only one is. C12-35 Electronics Clock 12.5 70 8.25 69.75 4.25 0.25 Sell to clock for 9 Cost/Benefit Cost $(4.25) Benefit $0.75 Total $(3.50) Do not They should not transfer since it is a negative cost/benefit analysis....
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This homework help was uploaded on 04/07/2008 for the course ACCT 152 taught by Professor Bayak during the Spring '07 term at Lehigh University .

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HW 23 - 3 they lose $20 since they are currently at idle...

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