Maurice Tutor

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About Maurice Tutor

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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: 398 Weeks Ago, 6 Days Ago
Questions Answered: 66690
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Education

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

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 02 Aug 2017 My Price 7.00

make-or-buy decision,

Question 1: The cost to produce Part A was $20 per unit in 2012. During 2013, it has increased to $23 per unit. In 2013, Supplier Company has offered to supply Part A for $18 per unit. For the make-or-buy decision,

a)incremental revenues are $5 per unit.
 

b)net relevant costs are $3 per unit.
 

c)differential costs are $5 per unit.
 

d)incremental costs are $3 per unit.

Question 2: Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered:

 

Old Machine

New Machine
Price $300,000          $600,000         
Accumulated Depreciation 90,000          -0-         
Remaining useful life 10 years          -0-         
Useful life -0-          10 years         
Annual operating costs $240,000          $180,600         


If the old machine is replaced, it can be sold for $24,000.

Which of the following amounts is relevant to the replacement decision?

$300,000
 

$59,400
 

$210,000
 

$90,000

 

Answers

Maurice Tutor
(5)
Status NEW Posted 02 Aug 2017 11:08 PM My Price 7.00

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