Maurice Tutor

(5)

$15/per page/Negotiable

About Maurice Tutor

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 307 Weeks Ago, 5 Days Ago
Questions Answered: 66690
Tutorials Posted: 66688

Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 07 Jan 2018 My Price 9.00

Hart Company

 

EXERCISE 12–7 Identification of Relevant Costs [LO1]

Hart Company sells and delivers office furniture across Western Canada.

 

 

 

 

 

The costs associated with the acquisition and annual operation of a delivery truck are given below:

 

 

Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 1,750

Licences. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$  250

Taxes (vehicle). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$   150

Garage rent for parking (per truck) . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 1,350

Depreciation ($30,000 ÷ 5 years). . . . . . . . . . . . . . . . . . . . . . . . . . . .

Gasoline, oil, tires, and repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$6,000

$0.16/km

Required:

 

 

1.               Assume that Hart Company owns one truck that has been driven 50,000 kilometres during the first year. Compute the average cost per kilometre of owning and operating the truck.

2.               At the beginning of the second year, Hart Company is unsure whether to use the truck or leave it parked in the garage and have all hauling done commercially. (The government requires the payment of vehicle taxes even if the vehicle isn’t used.) What costs from the previous list are relevant to this decision? Explain.

3.               Assume that the company decides to use the truck during the second year. Near year-end, an order is received from a customer over 1,000 kilometres away. What costs from the previous list are relevant in a decision between using the truck to make the delivery and having the delivery done commercially? Explain.

4.               Occasionally, the company could use two trucks at the same time. For this reason, some thought is being given to purchasing a second truck. The total kilometres driven would be the same as if only one truck were owned. What costs from the previous list are relevant to a decision about whether to purchase the second truck? Explain.

Answers

Maurice Tutor
(5)
Status NEW Posted 07 Jan 2018 10:01 PM My Price 9.00

Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------acq-----------uis-----------iti-----------on -----------of -----------my -----------pos-----------ted----------- so-----------lut-----------ion-----------.Pl-----------eas-----------e p-----------ing----------- me----------- on-----------cha-----------t I----------- am----------- on-----------lin-----------e o-----------r i-----------nbo-----------x m-----------e a----------- me-----------ssa-----------ge -----------I w-----------ill----------- be-----------

Not Rated(0)
Relevent Questions