Two alternatives, code-named X and Y, are under consideration at Guyer Corporation. Costs associated with the alternatives are listed below.AlternativeAlternativeYMaterials costsProcessing costsEquipment rentalOccupancy costs$ 49,000$ 53,800$ 20,200$ 19,200$ 71,000$ 53,800$ 20,200$ 28,600What is the financial advantage (disadvantage) of Alternative Y over Alternative X?Multiple CholceS(157.900)$142.200S173.600S31.400)< Prev5 of 9Next >68°F Mostly cloudyype here to searchDELL

In the given question, Total cost of both alternatives will be calculated. Since Alternative is Y is…

Answered: Two alternatives, code-named X and Y,…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 9PA: Hong Publishing has purchased Lang Publishing. After reviewing titles from both companies, a...

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Hudson Corporation is considering three options for managing its data warehouse: continuing with its own staff, hiring an outside vendor to do the managing, or using a combination of its own staff and an outside vendor. The cost of the operation depends on future demand. The annual cost of each option (in thousands of dollars) depends on demand as follows: If the demand probabilities are 0.2, 0.5, and 0.3, which decision alternative will minimize the expected cost of the data warehouse? What is the expected annual cost associated with that recommendation? Construct a risk profile for the optimal decision in part (a). What is the probability of the cost exceeding $700,000?
Segment analysis for a service company Charles Schwab Corporation (SCHW) is one of the more Innovative brokerage and financial service companies in the United States. The company recently provided information about its major business segments as follows (in millions): Investor Advisor Services Services Revenues $5,411 $2,067 Operating income 2,031 962 Depreciation 180 54 a. The Investor Services v segment serves the retail customer, you and me. These are the brokerage, Internet, and mutual fund services used by individual Investors. The Advisor Services v segment includes the same services provided for financial institutions, such as banks, mutual fund managers, insurance companies, and pension plan administrators. b. Indicate whether the following costs are a "Variable Cost" or a "Fixed Cost" in the "Investor Services" segment. 1. Commissions to brokers Varlable Cost v 2. Fees paid to exchanges for executing trades Variable Cost v 3. Depreciation on brokerage offices Flxed Cost v 4.…
Costs associated with two alternatives, code-named Q and R, being considered by Albiston Con Supplies costs Power costs Inspection costs Assembly costs a. Supplies costs a. Power costs Alternative Q Alternative R $ 67,000 $ 67,000 $ 31,000 $ 30,100 $ 30,100 $ 35,000 Required: a. Which costs are relevant and which are not relevant in the choice between these two alternat b. What is the differential cost between the two alternatives? a. Inspection costs a. Assembly costs b. Differential cost $ 21,000 $ 35,000 ६
The Miramar Company is going to introduce one of three new products: a widget, a hummer, or a nimnot. The market conditions (favorable, stable, or unfavorable) will determine the profit or loss the company realizes, as shown in the following payoff table: a. Compute the expected value for each decision and select the best one. b. Develop the opportunity loss table and compute the expected opportunity loss for each product. c. Determine how much the firm would be willing to pay to a market research firm to gain better information about future market conditions.
REQUIRED: How much of the common fixed cost of $200,000 can be avoided by eliminating the bar? Choose the answer and explain.a. None of itb. Some of itc. All of it
Compute the following :- 1. Calculate the lowest acceptable transfer price for the seller (Division A)? 2. Calculate the highest acceptable transfer price for the buyer (Division B)? 3. Calculate the range of acceptable transfer prices between the two divisions? 4. Assume Division A offers to sell 15,000 units to Division B for $74 and that Division B refuses this price. What will be the loss in potential prodits for the company whole as a whole
a) Using incremental analysis, determine if the component should be purchased from the outside supplier? Would your decision in part a) change if the company has the opportunity to rent out its facilities that it currently uses to manufacture the component for $5,500 ? Show full computations Why “Opportunity Costs” are not recorded in the financial books but are considered a relevant cost.
c. Estimate the contribution margin for each segment, assuming that depreciation represents the majority of fixed costs. Investor Services Advisor Services (in millions) (in millions) Estimated contribution margin d. If Schwab decided to sell its Advisor Services business to another company, estimate how much operating income would decline under the following assumptions. Assume the fixed costs that serve the Advisor Services business would not be sold but would be used by the other sector: $ Assume the fixed assets were "sold": $ million million
1. What is the relevant cost to make the part? State answer in total dollars NOT per unit and as a positive number. 2. Should Ran Corporation make the part? 3. What should Ran ignore? Why? 4. What would be the impact on total Net Income if Ran corporation accepted the supplier's offer? Show a negative for a loss, positive for a gain.
If Bohol Branch were eliminated, then its traceable fixed expenses could be avoided. The total common fixed expenses are merely allocated and would be unaffected. 1. What will be the new company profit (loss) if Bohol Branch is eliminated? 2. What will be the decrease in company profit if Bohol Branch is closed and 20% of its traceable fixed expense would remain unchanged while Cebu’s sales would decrease by 20%? SHOW SOLUTIONS FOR EACH REQUIREMENT.
You have been asked to decide about one of two mutually exclusive alternatives (A & B). The following table gives the initial costs, annual savings in labor costs, and the expected life of two pieces of equipment. Plot PW vs. i for each equipment on the same graph and identify the AAIRR from the graph (i for the intersection). Then, highlight the corresponding value of i in yellow in your spreadsheet. High-cost Equipment (A) Low-cost Equipment (B) Initial Cost $137,910 $100,000 Savings in Labor Costs $42,000 / year $32,000 / year Life 5 years 5 years
ABC Co.,is analyzing whether to expand operations by adding a new product line. Which of the following choices correctly identifies the costs that should be considered in this decision? none of the costs noted opportunity costs only sunk costs only

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