What is the differential revenue for this decision

Assignment Help Financial Accounting
Reference no: EM131211231

Brandon Company plans to add a new item to its product line. Two possible products are under consideration. Each unit of Product A costs $12 to produce and sells for $20, while each unit of Product B costs $18 and sells for $28. What is the differential revenue for this decision?

a. $2 per unit sold

b. $8 per unit sold

c. $14 per unit sold

d. $18 per unit sold

Reference no: EM131211231

Questions Cloud

Employees based on expected client traffic : Jenny’s Cutting Station is a new concept in haircuts; low cost and very quick. Set in a local mall, Jenny’s offers 15 minute haircuts for harried shoppers who do not have time for lengthy appointments. To ensure that the clients are in and out quickl..
Direct labor hours than those reflected in the standards : Castle Inc. has set labor costs at $48 per unit of output, based on 3 hours allowed to produce each finished unit. Last month, 3,000 direct labor hours were used, and 1,500 units of output were manufactured at a total labor cost of $72,000. If the co..
Prepare income statements segmented by products : Quincy Corp. produces three products: X, Y, and Z. The income statement for 2014 is as follows: Sales $3,000,000 Less variable costs -1,905,000. Prepare income statements segmented by products and include a column for the entire firm in the statement..
Distributed to its sold individual shareholder : A business generates profits of $150,000. The owner currently has a 28% MTR. What is the total amount of taxes paid if the business is a regular corporation and $20,000 in dividends is distributed to its sold individual shareholder?( The dividend tax..
What is the differential revenue for this decision : Brandon Company plans to add a new item to its product line. Two possible products are under consideration. Each unit of Product A costs $12 to produce and sells for $20, while each unit of Product B costs $18 and sells for $28. What is the different..
Experiences an equal increase or decrease in sales : Pioneer and Victory operate in the same industry. Pioneer’s sales, variable costs, and fixed costs are $800,000, $560,000, and $80,000, respectively. Victory’s sales, variable costs, and fixed costs are $800,000, $320,000, and $320,000, respectively...
What cost flow assumption was used : A had 500 units in its inventory at a cost of $5 each. if purchased, for $2400, 300 more units. A then sold 600 units at a selling price of $10 each, resulting in gross profit of $2,100. What cost flow assumption was used? End of the year physical in..
What is the company net operating income : Quinnett Corporation has two divisions: the Export Products Division and the Business Products Division. The Export Products Division's divisional segment margin is $37,300 and the Business Products Division's divisional segment margin is $89,700. Th..
What does a negative net present value indicate : The key to analyzing a sell as is or process further decision is to determine that: In a capital budgeting decision, if a firm uses the net present value method and a 12% discount rate, what does a negative net present value indicate?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Management by exception-level of managerial responsibility

Management by exception. A cost is considered controllable at a given level of managerial responsibility if. A responsibility report should. The accumulation of accounting data on the basis of the individual manager who has the authority to make day-..

  Clearing house for business students

If it costs about the same amount per minute for processing witheither of the two methods, when should each be used?

  Governments and not-for-profits than for businesses

Why is the budget a far more important document for both governments and not-for-profits than for businesses?

  Determine the correct inventory amount on december

Premier Bank and Trust is considering giving Alou Company a loan. Before doing so, management decides that further discussions with Alou's accountant may be desirable. Determine the correct inventory amount on December 31

  What was the company turnover rounded to the nearest tenth

Last year the House of Orange had sales of $826,650, net operating income of $81,000, and operating assets of $84,000 at the beginning of the year and $90,000 at the end of the year. What was the company's turnover rounded to the nearest tenth?

  A meeting of senior managers at the pringly division has

a meeting of senior managers at the pringly division has been called to discuss the pricing strategy for a new product.

  Predetermined overhead rate-denominator level of activity

Kingdon Corporation's manufacturing overhead includes $7.10 per machine-hour for variable manufacturing overhead and $207,000 per period for fixed manufacturing overhead. What is the predetermined overhead rate for the denominator level of activity o..

  What is an unexpired cost and what is an expired cost

Businesses incur costs on a regular basis. Why do you think that businesses incur costs? What is an “unexpired cost”? What is an “expired cost”?

  Fargo memorial hospital has annual net patient service

Fargo Memorial Hospital has annual net patient service revenues of $14,400,000. It has two major third-party payers, plus some of its patients are self-payers. The hospital's patient account manager estimates that 10 percent of the hospital's paying ..

  Prepare any journal entries for the equipment

Rohan Company purchased equipment in January 2008 for $8,000,000 and had an estimated useful life of 6 years with a salvage value of $2,000,000. At December 31, 2010, new technology was introduced that would accelerate the obsolescence of Rohan..

  Explain how would the concepts of utility-income

Explain how would the concepts of utility, income, and substitution predict consumer behavior based on the rise in the cost of carbonated beverages?

  Illustrate at what amount will the building be recorded

Patti and Pam are forming a partnership. Patti will invest a piece of equipment with a book value of $6,068 and a fair market value of $11,522. Pam will invest a building with a book value of $39,286 and a fair market value of $75,432. Illustrate ..

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd