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!
A soft drink maker wants to expand into a neighboring country. They want the product bottled in that country to avoid political issues and to enhance the local image of the product. They have identified two options for the expansion. The first is to build a highly automated plant. The economies of scale would allow them to produce a can of soda for $0.04 and the distribution costs would be $0.02 per can. This facility would cost $1 million per year in fixed costs. The second option would be to build a semi-automated plant that would cost $650,000 per year in fixed costs. However, the cost to produce a can would be $0.07 and the distribution cost would be $0.04 per can.
a) Over what range of product would each plant be preferred?
b) Suppose the company believes that the demand would be approximately 6,000,000 cans per year. Suppose all costs except the variable cost (sum of the production and distribution costs) for the highly automated process are certain and can not change. What would the variable cost (the sum of the production and distribution cost) per can for the highly automated process have to be so that the soft drinker maker is indifferent between the two types of plants?
c) Now suppose each alternative has a different capacity. The total estimated demand for the year is 5,000,000 if the company sells each can for $0.32. However, only the highly automated process can produce and distribute this amount. If the semi-automated process is used, the company would only be able to produce and distribute 4,200,000 cans annually. To offset the lower volume, the company will raise the price of each can to $0.35. It will be able to sell all it produces at this price. Using all of the information presented in the problem, which process should it use? Why?
Chemical Recovery Company uses common machinery to manufacture two products. Each year, the company has a total of four productions runs, which is two production runs for each pro
The vice president of operations of six layer computer Inc. is evaluating the performance of two divisions organized as investments centers. Invested assets and condensed income st
METHODS OF COSTING : 1. Job costing : Job costing is the essential costing technique appropriate to those industries somewhere the work consist of separate contracts, or batch
difference between diffrential cost and marginal cost
behavioral aspect of standard costing
Accounting Case Study: The Champlain Career Consulting Corporation ("CCCC") is owned by three Trent graduates. Incorporated in 2009, CCCC provides a wide-range of career plann
Piece Rate System - Labour Remuneration However an employee is paid a fixed amount for all units produced irrespective of time in use; the wages payable are computed like fo
Shubenacadie Inc. is currently considering a project with a 5-year life that it believes has the potential to return the company to profitability. Based on the results from a marke
Tracking Direct Materials Jack keeps full records of the material released to each job. When Donnie gathered up light bulbs, tape, breakers, wire, and wire nuts on the morning
(i) In terms of cashflow, which month will be the most costly for your project? (ii) If the 3rd and 4th months are more expensive by 25% each because the outsourced labour took
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd