Using the cost terminology

Assignment Help Financial Accounting

Reference no: EM131219221

You just started a summer internship with the successful management consulting firm of Kirk, Spock, and McCoy. Your first day on the job was a busy one, as the following problem was presented to you.

A local PBS station has decided to produce a TV series on state-of-the-art manufacturing. The director of the TV series, Justin Tyme, is currently attempting to analyze some of the projected costs for the series. Tyme intends to take a TV production crew on location to shoot various high-tech manufacturing scenes as they occur. If the four-week series is shown in the 8:00–9:00 p.m. prime-time slot, the station will have to cancel a wildlife show that is currently scheduled. Management projects a 10 percent viewing audience for the wildlife show, and each 1 percent is expected to bring in donations of $20,000. In contrast, the manufacturing show is expected to be watched by 15 percent of the viewing audience. However, each 1 percent of the viewership will likely generate only $10,000 in donations. If the wildlife show is canceled, it can be sold to network television for $50,000.

Using the cost terminology introduced in Chapter 2, comment on each of the financial amounts mentioned in the preceding discussion. What are the relative merits of the two shows regarding the projected revenue to the station?

Reference no: EM131219221

Questions Cloud

Why will bonuses be negatively affected : Danville Bottlers is a wholesale beverage company. Danville uses the FIFO inventory method to determine the cost of its ending inventory. Ending inventory quantities are determined by a physical count. Why will bonuses be negatively affected? What is..

Discuss the role of accounting in business : Discuss the role of accounting in business. Name one group of users of accounting information and discuss what information they might be interested in and how they might use this information. Discuss the four financial statements and how they relate ..

Describe and provide an example of an opportunity cost : Describe and provide an example of an opportunity cost. What are examples of opportunity costs that would be associated with production facilities if the manager had to make a decision on outsourcing?

Describe the characteristics of relevant costs : Describe the characteristics of relevant costs and discuss whether all relevant costs are found in accounting records. why are future costs not always relevant in decision making?

Using the cost terminology : A local PBS station has decided to produce a TV series on state-of-the-art manufacturing. The director of the TV series, Justin Tyme, is currently attempting to analyze some of the projected costs for the series. Tyme intends to take a TV production ..

Cash aow from operations to capital expenditures ratio : During 20xx,Mark Walker, Inc.had cash Aow from operations totalling $675,000, dividends paid totaling $20,000, and equipment purchases totalling $200,000. Required : what is the cash Aow from operations to capital expenditures ratio?

Taxpayer is considering two mutually exclusive alternatives : A taxpayer is considering two mutually exclusive alternatives. Alternative A is to hire a tax accountant at a cost of $ 20,000 to research the tax law on a tax avoidance plan. If successful, the plan would save the taxpayer $ 21,000 in taxes.

Relationship between entities-attributes-tables and columns : Our discussion question asked about Columns but what about rows and records? What do these terms equate to? Explain the relationship between entities, attributes, tables, and columns.

User Account

All Pages