What is the net advantage or disadvantage to the company

Assignment Help Accounting Basics
Reference no: EM131747494

Tawstir Corporation has 750 obsolete personal computers that are carried in inventory at a total cost of $1,102,500. If these computers are upgraded at a total cost of $49,500, they can be sold for a total of $861,750. As an alternative, the computers can be sold in their present condition for $786,375.

The sunk cost in this situation is:

$1,102,500
$861,750
$786,375
$49,500

Tawstir Corporation has 300 obsolete personal computers that are carried in inventory at a total cost of $432,000. If these computers are upgraded at a total cost of $120,000, they can be sold for a total of $180,000. As an alternative, the computers can be sold in their present condition for $30,000.

What is the net advantage or disadvantage to the company from upgrading the computers rather than selling them in their present condition?

$480,000 disadvantage$150,000 advantage$30,000 advantage$60,000 advantage

Weston Corporation is considering eliminating a department that has a contribution margin of $70,000 and $140,000 in fixed costs. Of the fixed costs, $100,000 cannot be avoided. The effect of eliminating this department on Weston's overall net operating income would be:
an increase of $70,000. a decrease of $70,000. an increase of $30,000. a decrease of $30,000.

Reference no: EM131747494

Questions Cloud

Biology and environment science oregon scientific : Biology and Environment Science Oregon Scientific has come under suspicion of purposely shipping defective wireless weather stations.
Is the process of hazard control a proactive-predictive : Is the process of hazard control a proactive, predictive, or a reactive process?
Describe marketing uses of branding : Describe marketing uses of branding. A brand is a name, term or symbol that identifies and differentiates a firm's products.
Fuel consumption and cars : Fuel Consumption and Cars The Massachusetts State Police union is interested in the number of miles driven by each officer during an 8-hour shift.
What is the net advantage or disadvantage to the company : What is the net advantage or disadvantage to the company from upgrading the computers rather than selling them in their present condition
Find the probability of accepting the entire shipment : Find the probability of accepting the entire shipment if the true proportion of defective floor tiles is 0.01, 0.02, 0.03, 0.04, 0.05, 0.06, 0.07, 0.08, 0.09.
Manufacturing and product development : Manufacturing and Product Development Gillette claims a new disposable razor provides a closer shave than any other brand currently on the market.
Manufacturing and product development midwest : Manufacturing and Product Development Midwest Pet Supplies claims its K9 Chain Link Dog Kennel can be set up in less than 30 minutes.
State an appropriate null hypothesis to be tested : State an appropriate null hypothesis to be tested for these data.

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.

  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!

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