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    Argosy University/ Phoniex University/
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Category > Accounting Posted 06 May 2018 My Price 9.00

capital expenditure

PROBLEM 1 – Chapter 11

 

Determine if each of the following would be an operating expense or a capital expenditure.

 

Paying $1.6 million for a new office building

 

Paying for 3 calculators at $25 each for cashiers in the office.

 

Paying $1500 for employee to travel to training seminar.

 

Paying $12000 to rent equipment for a special project.

 

Paying $48,000 for a new car for the company VP

 

Paying $280,000 for office furniture for the new building.

 

PROBLEM 2 – Chapter 11

 

Jenson Computers has 850 computers that are no longer useful. The original cost was $600,000. The computers could be upgraded for $195,000 and sold for $728,000. Or, they could be sold as is for $100,000.

 

What is their sunk cost?

 

What is their opportunity cost if they sell it for $100,000?

 

PROBLEM 3--Chapter 13

 

Irvine Metals has changed to a new accounting system and wants to verify its calculations. The company has fixed operating costs of $470,000 per year and variable operating costs of $85.00 per unit. They typically sells their widgets for $125 per unit. Using the information provided,

 

What is the operating breakeven points in units?

 

PROBLEM 4--Chapter 13

Cessalin Company sells quilts for $25.75 per quilt. The company has fixed operating costs of $38,430 per year. They also have variable cost per arrangement of

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Maurice Tutor
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Status NEW Posted 06 May 2018 06:05 PM My Price 9.00

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