Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Each month, Triton Industries produces and sells 15,000 units of a product called Zonetooth. The selling price of Zonetooth is $20 per unit, and variable

Each month, Triton Industries produces and sells 15,000 units of a product called Zonetooth. The selling price of Zonetooth is $20 per unit, and variable expenses are $14 per unit. Due to demand forecasts, Triton is considering if Zonetooth should be discontinued. Analysis shows that $70,000 of the $100,000 in fixed expenses charged to Zonetooth would continue even if the product were discontinued. These data indicate that if Zonetooth is discontinued, the company's overall net operating income would: A) decrease by $60,000 per month. B) increase by $20,000 per month. C) decrease by $20,000 per month. OD) increase by $10,000 per month. Stonehedge Inc. manufactures 20,000 units of a certain part to use in one of its products. The costs to manufacture the part includes: Variable MOH Direct labour Fixed MOH Direct materials Total cost $8 16 10 4 $38 Davidson Industries approached Stonehedge Inc. and offered to sell this part to the company for $36 each. If Stonehedge Inc. buys the part from Davidson instead of making it, Stonehedge Inc. would not have any use for the capacity available. In addition, 60% of the fixed manufacturing overhead costs will continue regardless of what decision is made. Assume that direct labour is an avoidable cost in this decision. What are the total relevant costs to make the part? OA) $720,000. OB) $760,000. OC) $560,000. OD) $640,000

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

Step: 3

blur-text-image

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

Finance Construction 17 Corporate Ifrs Gaap Engineering Technologies No 10 501 11 000 Of 111 111 Laws

Authors: Tim Asikin, Steve Asikin

1st Edition

1078350590, 978-1078350594

More Books

Students also viewed these Accounting questions

Question

=+1. Who are your competitors?

Answered: 1 week ago

Question

Write a note on job design.

Answered: 1 week ago

Question

Compute the derivative of f(x)cos(-4/5x)

Answered: 1 week ago

Question

Discuss the process involved in selection.

Answered: 1 week ago

Question

Differentiate tan(7x+9x-2.5)

Answered: 1 week ago

Question

10. Are you a. a leader? b. a follower? _______

Answered: 1 week ago

Question

What did they do? What did they say?

Answered: 1 week ago