Accounting Coursework Week One
Toya M. Cornelious
Problem 1-8 Golf Expertise
A. GS ought to accept Kojos offer since they will observe an increased income of $90. 00. By $3. 50 per mind, GS receives $375. 00 profit. In $3. twelve per mind, GS receives $575. 00 profit. This really is offset with a $110. 00 loss through the sale to Kojo. The result is a $90. 00 net increase.
3. 50x500=1750. 00 4. 25x500=2125. 00 2125-1750=375. 00 income
3. 10x600=1860. 00 2 . 00x100=200 2125+200=2325. 00-1865=465. 00 profit
N. $1550. 00
3. 10x500=1550. 00
C. GS should consider opportunity cost before choosing to accept the deal with Kojo. If they will choose to do organization with Kojo, Kojo might want to purchase further heads. If Kojo needed 200 heads, the cost to manufacture would be $620. 00. Kojo will pay $400. 00. This represents a loss of $220. 00 and negates the profit realized from the sale of the other 500 heads.
3. 10x200=620. 00 2x200=400 620. 00-400. 00=200. 00 damage
Problem 1-10 Montana Coop Company
A. Not any, Montana pens should not want to outsource the pens. Even though the cost of the 400 pens produced in China is going down forty-nine baht per unit, the expense of the 800 pens manufactured in Thailand is going up 28. 5 baht per device. The result can be an increase in expense to 187 baht a unit or 2400 baht even more.
. 185x1200=222, 500
212. 50x800=170, 000
168, 000+54, 000=224, 400
224, 400/1200=187 baht
B. Montana pens must look into fixed price, variable costs, and chance cost. Anything a simple while shipping costs for the pens can add significant costs.
Difficulty 2-2 Bad Opportunity Costs
A. As referred to by Zimmerman, opportunity expense can be unfavorable. If a firm orders supplies for a special project that cannot be in any other case used, the chance cost is the resale value or recycle value in the supplies. In the event the company incurs a cost...