Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Smoluk Mining Co. is currently operating @ less than 50% of capacity. The management of the company expects sales to drop below the present level of 10,000 tons of ore per month very soon. The sales price per ton is $3 and the variable cost per ton is $2. Fixed cost per month total $10,000.
Management is concerned that a further drop in sales volume will generate a loss and is considering the temporary suspension of operations until demand in the metals markets reebounds and prices once again rise. Over the past year, management has implemented a cost reduction program that has been successful in reducing costs to the point that suspending operations appears to be the only viable alternative. Mangement estimates that suspending operations would reduce fixed costs by $6,000 per month.
A- Why does management estimate that the fixed costs will persist at $4,000 even though the mine is temporarily closed?
B- At what sales volume will the loss be greater or less than the shutdown cost of $4,000 per month?
C- List any qualitative factors that you think management should consider in this decision, and discuss the potential impact of each factor on the decision.
consider the following independent situations.a mark yoders wishes to become a millionaire. his money market fund has a
If you were a member of the School District board, what factors would you consider in evaluating the two bids?
stephanie is the two-year old daughter of jason and kelly larkspur. stephanie starred in several television commercials
Gloddy Company makes three products in a single facility. These products have the following unit product costs: How many minutes of mixing machine time would be required to satisfy demand for all three products.
Which of the following is the least likely consideration that management uses when deciding whether to pay a dividend? Is the company's average number of common shares outstanding decreasing?
It allows the company to pay off the bond anytime after the first fifteen years, but requires that bondholders be compensated with an extra year's interest at the coupon rate if such a payoff is exercised. What is the bond's market price assuming ..
last year attic charged 3496000 depreciation on the income statement . if early this year attic sold all its
derks co. is a merchandising business. the account balances for derks co. as of november 30 2012 unless otherwise
tessmer manufacturing company produces inventory in a highly automated assembly plant in olathe ks. the automated
A 15% increase in production will result in: A) a 15% increase in the variable cost per unit B) a 15% increase in total mixed costs C) a 15% increase in total manufacturing costs D) a 15% decrease in total variable costs
a manufacturing corporation recently reassigned one of its accounting managers to the internal audit department. he
What is the budgeted net income for February.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd