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Swifty Corporation sells radios for $50 per unit. The fixed costs are $345000 and the variable costs are 60% of the selling price. As a
Swifty Corporation sells radios for $50 per unit. The fixed costs are $345000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $25000 and variable costs will be 50% of the selling price. The new break-even point in units is: 12350 14800 13800 17250 Vaughn Manufacturing can produce 100 units of a component part with the following Direct Materials Direct Labor Variable Overhead Fixed Overhead $14000 5500 9000 11000 If Vaughn Manufacturing can purchase the component part externally for $35000 and or-buy decision? Make and save $500 Sunland Company has old inventory on hand that cost $20250. Its scrap value is $27000. The inventory could be sold for $67500 if manufactured further at an additional cost of $20250. What should Sunland do? Hold the inventory at its $20250 cost Dispose of the inventory to avoid any further decline in value Sell the inventory for $27000 scrap value O Manufacture further and sell it for $67500 A company has a process that results in 28000 pounds of Product A that can be sold for $8 per pound. An alternative would be to process Product A further at a cost of $187600 and then sell it for $14 per pound. Should management sell Product A now or should Product A be processed further and then sold? What is the effect of the action? O Process further, the company will be better off by $19600. Sell now, the company will be better off by $187600. O Process further, the company will be better off by $168000. Sell now, the company will be better off by $19600
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