9 . Question :
( TCO 6 ) The building maintenance department for Jones Manufacturing Company budgets annual costs of $ 4,200,000 based on the expected operating level for the coming year . The costs are allocated to two production departments . The following data relate to the potential allocation bases :
Production Dept . 1 10 . Question :
( TCO 7 ) A company is currently making a necessary component in house ( the company is producing the component for its own use ). The company has received an offer to buy the component from an outside supplier . A machine is being rented to make the component . If the company were to buy the component , the machine would no longer be rented . The rent on the machine , in relation to the decision to make or buy the component , is :
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 ?