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Alexandria Semiconductors produces 300,000 hi-tech computer chips per month. Each chip uses a component which Alexandria makes in house. The variable costs to make the component are $0.80 per unit, and the fixed costs run $956,000 per month.Alexandria has been approached by a foreign producer who can supply the component, ready made and with acceptable quality standards for $0.60 each. The fixed costs are unavoidable, and Alexandria would have no other use for the facilities currently employed in making the component. If Alexandria decides to outsource, how would that affect the operating income?
hiawatha corp is considering the purchase of a new piece of equipment. the cost savings from the equipment would result
unfortunately a quick scan of the business news will normally result in reports of unethical business behavior. to
The pecking order theory of capital structure rests on an assumption
an auditor was appointed to the audit of bid inc. bid subsequent to bids year-end date. bid is in the business of
current information on mondavi and constellation brands can be found in the lrc database mergent online.1. discuss the
Label each T account with the title of the account affected and then place the transaction letter and the dollar amount on the debit or credit side.
What is a common source of asset write-offs?
If a division is reporting losses, does that necessarily mean that it must be closed? Was the reallocation of the fixed costs across divisions unethical?
Prepare journal entries to record the write-off of receivables, the collection of $1,200 for previously written off receivables, and the year-end adjusting entry for bad debt expense.
In August, Gold Company sold 770 units of their only product. For the month, fixed costs were $10,400, variable costs were 57% of sales, and the average sales price was $62.
on january 1 2012 graham company purchased a new machine for 2800000. the new machine has an estimated useful life of
At the high level of activity in November, 7,00 machines hours were run and power cost were $12,000. In April, A month of low activity 2,000 machine hours were run and power costs amounted to $6,000. Using the high-low, the estimated fixed cost el..
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