Questions from General Accounting

Q: Duncan Company owns a machine with a cost of $75,

Duncan Company owns a machine with a cost of $75,000 and accumulated depreciation of $15,000 that can be sold for $54,000 less a 5% sales commission. Alternatively, Duncan Company can lease the machin...

Q: Timberlake Company owns equipment with a cost of $165,000

Timberlake Company owns equipment with a cost of $165,000 and accumulated depreciation of $60,000 that can be sold for $82,000 less a 6% sales commission. Alternatively, Timberlake Company can lease t...

Q: Product Alpha has revenue of $545,000, variable cost

Product Alpha has revenue of $545,000, variable cost of goods sold of $400,000, variable selling expenses of $65,000, and fixed costs of $90,000, creating a loss from operations of $10,000. Prepare a...

Q: Although the cost-plus approach to product pricing may be used

Although the cost-plus approach to product pricing may be used by management as a general guideline, what are examples of other factors that managers should consider in setting product prices?

Q: Product B has revenue of $39,500, variable cost

Product B has revenue of $39,500, variable cost of goods sold of $25,500, variable selling expenses of $16,500, and fixed costs of $15,000, creating a loss from operations of $17,500. Prepare a differ...

Q: A restaurant bakes its own bread for a cost of $230

A restaurant bakes its own bread for a cost of $230 per unit (100 loaves), including fixed costs of $47 per unit. A proposal is offered to purchase bread from an outside source for $180 per unit, plus...

Q: A company manufactures various sized plastic bottles for its medicinal product.

A company manufactures various sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $67 per unit (100 bottles), including fixed costs of $22 per unit. A proposa...

Q: A machine with a book value of $250,000 has

A machine with a book value of $250,000 has an estimated six-year life. A proposal is offered to sell the old machine for $320,000 and replace it with a new machine at a cost of $390,000. The new mach...

Q: A machine with a book value of $80,000 has

A machine with a book value of $80,000 has an estimated five-year life. A proposal is offered to sell the old machine for $50,500 and replace it with a new machine at a cost of $75,000. The new machin...

Q: Edward Seymour is a financial consultant to Cornish Inc., a real

Edward Seymour is a financial consultant to Cornish Inc., a real estate syndicate. Cornish finances and develops commercial real estate (office buildings) projects. The completed projects are then sol...