User Account

All Pages

What is the incremental income from selling the units

Assignment Help Accounting Basics
Reference no: EM132059703

Question - A company must decide between scrapping or reworking units that do not pass inspection. The company has 13,000 defective units that cost $5.70 per unit to manufacture. The units can be sold as is for $2.70 each, or they can be reworked for $4.70 each and then sold for the full price of $8.40 each. If the units are sold as is, the company will be able to build 13,000 replacement units at a cost of $5.70 each, and sell them at the full price of $8.40 each.

What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units as scrap or rework them? (Enter costs and losses as negative values.)

Reference no: EM132059703

Questions Cloud

Generate positive cash flows in years one : Project A would require an initial outlay of $62,000 and is expected to generate positive cash flows in years one through six of $14,436; $10,957.
Discuss what is the advantage of investing immediately : Discuss what is the advantage of investing immediately over delaying to the end of the month?
Average velocity of the particle over the interval : Find the average velocity of the particle over the interval [1, 4]. Include units in your answer.
Find the area of the given region using the formula : The given region is the combination of a semicircle with radius 6 cm and a square with side length 12 cm. Find the area of the given region using the formula
What is the incremental income from selling the units : What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units as scrap or rework them
The expected return on equity under each current asset level : Working Capital Policy Payne Products had $1.6 million in sales revenues in the most recent year and expects sales growth to be 25% this year.
Evaluate the project mirr : Project L costs $60,000, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 9%. What is the project's MIRR? Round your answer.
Find the rate of change of f with respect : (a) Find the rate of change of F with respect to(?). (b) When is this rate of change equal to 0?
Calculate the total incremental cost : Gilberto Company currently manufactures 60,000units per year of one of its crucial parts. Calculate the total incremental cost of making 60,000 units

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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