Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

32.Abbott Company is considering purchasing a new machine to replace a machine purchased one year ago that is not achieving the expected results. The following

32.Abbott Company is considering purchasing a new machine to replace a machine purchased one year ago that is not achieving the expected results. The following information is available: Expected maintenance costs of new machine $12,000 per year Purchase price of existing machine $150,000 Expected cost savings of new machine $20,000 per year Expected maintenance costs of existing machine $8,000 per year Resale value of existing machine $35,000 Which of these items is irrelevant? a. Expected resale value of existing machine b. Expected maintenance costs of new machine c. Expected maintenance costs of existing machine d. Purchase cost of existing machine 33.____ is present whenever products have different consumption ratios for different overhead activities. a. Control costs b. Activity inputs c. Activity sharing d. Product diversity e. Environmental costs

34.Workshape Company sells office chairs at $400 per unit, incurs variable cost per unit of $150, and has a total fixed expense of $40,000. How many units must be sold to achieve a target operating income of $60,000? a. 400 units b. 180 units c. 450 units d. 275 units e. 200 units

35

The _____ can be measured for a given level of sales by taking the ratio of contribution margin to operating income.

a.percentage change in profits

b.degree of operating leverage

c.unit contribution margin

d.indifference point

e.margin of safety

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services A Systematic Approach

Authors: William F. Messier, Steven M. Glover, Douglas F. Prawitt

4th Edition

0071117474, 9780071117470

More Books

Students also viewed these Accounting questions

Question

=+1. Who is responsible for CSRfirms or their stakeholders? Why?

Answered: 1 week ago