Entries by Hannah Wangui

incremental analysis

Question There are 2 options. Option 1 is to rent out a spacious warehouse nearby. If they pursue this option, their rent will be $1200 per month and utilities are estimated to cost an additional $350 per month. Their 2nd option, option 2 is to rent a smaller storefront space that is also nearby. The […]

 

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profitability

Question Jersey corporation has analyzed their customer and order handling data for the past year & has determined the following costs Ordering processing cost per order $7 additional costs if order must be expedited (rushed) $10.00 Customer technical support calls (per call) $12 relationship management costs per customer/per year) $1200 in addition to these costs, […]

 

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Deprecation

Question Howell Corp produces an executive jet for which it currently manufactures a fuel valve; the cost of the valve is indicated below The company has an offer from Duvall valves to produce the part for 2,000 per unit and supply 1000 valves (the number needed for coming year) If the company accepts this offer […]

 

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Depreciation

Question 12,000 for space. At the show, infinity designs will present a slide show on a PC, pass out brochures that are printed previously (the company printed more than needed) And shoe its portfolio of previous jobs. The company estimates that revenue will increase by $36,000 over the next year as a result of the exhibit. […]

 

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