11 . Question : ( TCO 7 ) Ricket Company has 1,500 obsolete calculators that are carried in inventory at a cost of $ 13,200 . If these calculators are upgraded at a cost of $ 9,500 , they could be sold for $ 22,500 . Alternatively , the calculators could be sold " as is " for $ 9,000 . What is the net advantage or disadvantage of reworking the calculators ? 12 . Question : ( TCO 7 ) YXZ Company ’ s market for the Model 55 has changed significantly , and YXZ has had to drop the price per unit from $ 275 to $ 135 . There are some units in the work in process inventory that have costs of $ 160 per unit associated with them . YXZ could sell these units in their current state for $ 100 each . It will cost YXZ $ 10 per unit to complete these units so that they can be sold for $ 135 each .
When the incremental revenues and expenses are analyzed , what is the financial impact ? 1 . Question : ( TCO 3 ) What are transferred-in costs ? Which departments will never have transferred-in costs ?
2 . Question : ( TCO 7 ) Computer Boutique sells computer equipment and home office furniture . Currently , the furniture product line takes up approximately 50 % of the company ' s retail floor space . The president of Computer Boutique is trying to decide whether the company should continue offering furniture or just concentrate on computer equipment . If furniture is dropped , salaries and other direct fixed costs can be avoided . In addition , sales of computer equipment can increase by 13 %. Allocated fixed costs are assigned based on relative sales . Computer Home Office Equipment Furniture 3 . Question : ( TCO 4 ) The following monthly data are available for RedEx , which produces only one product that it sells for $ 84 each . Its unit variable