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Hello. please see attached request 2 of 2. Are you able to get this and the previous request complete by 7:50 CST US? Thanks! Question

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Hello. please see attached request 2 of 2. Are you able to get this and the previous request complete by 7:50 CST US? Thanks!

image text in transcribed Question 11 Which of the following costs are always irrelevant to all decisions? a. Salvage value of an old machine b. Variable production costs c. Fixed costs such as factory rent and insurance d. Selling costs e. None of the above Question 12 The Brice Co. produces and sells two types of products, standard and premium, using the same manufacturing inputs. Demand for either product is high, but the company has only 1200 pounds of raw materials available. Details about revenues and costs from the prior year are in the table below. Fixed overhead was $6,000 last year and was applied at a rate of $6 per direct labor hour. Assuming cost behavior will be the same next year, which product or products should the company make to maximize profits? a. Produce some standard and some premiums b. Produce only premiums c. Produce only standards d. Do not produce either product Continued on next page.......... Question 13 The Dozier Co. sells 3-point hitches (a tractor part) for $100 each. Variable production costs are $75 per unit. Last year, the company sold 240 hitches and had a profit of $3,200. If revenue per unit and cost behavior remains the same next year, what is Dozier's breakeven point for next year? a. 240 b. 128 c. 112 d. None of the above Question 14 Dozier is considering spending an additional $1,300 on advertising next year. Dozier expects this to increase units sold by 50. Assuming the cost behavior remains constant, how would Dozier's profit change with the additional investment in advertising? Question 15 January 2, 2015, finds Mr Carrera re-examining how his company acquires telephone service. The most recent budget shows an expected cost of $600 per quarter for the next three years, or a total of $7,200. The $600 is paid at the end of each quarter. Mr. Carrera received an offer from a new phone company in late December that he could pay $6,500 on January 3, 2015 instead of making the quarterly payments for 3 years. Mr. Carrera has asked you to do a quantitative analysis of this proposal - does this really save the company money? When you ask, Carrera says the company's discount rate is 2% per quarter. ("ish" means your answer is within $5 of the figure given) a. The company saves $855 (ish) by paying immediately b. The company saves $728 (ish) by paying immediately c. The company saves $700 by paying immediately d. The company loses $155 (ish) by paying immediately e. None of the above Continued on next page......... Question 16 Without prejudice to your answer above, suppose the quantitative analysis revealed the company could save money by paying upfront instead of quarterly. Identify two distinct qualitative issues that Mr. Carrera should consider before accepting this offer Question 17 Thornwell Co. uses a job-order cost system. It builds batches of furniture and then sells the finished products to retailers. It had no inventories at the beginning of 2015. During 2015, it started three batches Sofas, Tables, and Desks. Information about each job is in the chart below. Thornwell applies overhead to jobs at a rate of $30 per direct labor hour, with two-thirds of the overhead costs being fixed and one-third variable. The batches of Sofas and Tables were completed and all of those items were shipped to customers in 2015. The batch of Desks remains in process at the end of 2015. Actual overhead costs totaled $20,000. Thornwell closes over/under applied overhead to cost of goods sold at the end of each year. What is Thornwell's balance in inventories at the end of 2015? a. $41,790 b. $3,740 c. $4,440 d. $5,840 e. $4,340 f. None of the above Question 18 On January 1, 2016, Thornwell decides to suspend operations, which means the batch of Desks will never be completed. The P.J. Company approaches Thornwell with an offer to buy the partially completed Desks. Thornwell would need to spend $960 to crate the partially completed Desks in preparation for shipping to P.J. What is minimum payment that Thornwell needs to receive from P.J. in order to cover all its relevant costs? Continued on next page......... Question 19 The Cliney Co. is considering investing $40,000 in new equipment. If the project is accepted, it would generate cash revenues of $15,000 per year and cash costs of $5,000 per year for the next 10 years. The equipment is expected to be sold for $8,000 at the end of year 10. Assume Cliney uses straight-line depreciation to compute depreciation expense for all purposes. What is the net cash inflow in year 5? Assume Cliney has a 0.0% tax rate (is tax exempt) a. $6,800 b. $8,000 c. $10,000 d. $15,000 e. None of the above Question 20 Use the information from Cliney Co. in the prior problem, but assume Cliney has a 35% tax rate. What is the net cash inflow in year 10

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