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Lecture

Hot Wheels Question.docx

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Department
Accounting
Course
ACC 928
Professor
Aadil Merali Juma
Semester
Fall

Description
Hot Wheels Question a) Make cars DM 10,000*$7= $70,000 DL 10,000*$3= $30,000 VMOH 10,000*$2= $20,000 Inspection 10,000*$1= $10,000 Machine Rent 10,000*$150=$15,000 $145,000 Option: Buying cars without upgrade Purchase Price from vendor [$15*10,000] $150,000 Buy cars with upgrade *Purchase Price $150,000 Variable Cost for upgrade [$9*10,000]=$90,000 Additional Fixed Cost of Upgrade $8,000 Additional Income from upgrade ($110,000) = $11*10,000 $138,000 Therefore, buy with the upgrade. 1. Which of the following statements is true? e) both b. and d above are true. 2. Which of the following statements is/are true? a) avoidable costs are also called differential costs. Clearwater company. a) Determine the average cost per bottle =(Fixed Costs/Average Litres Sold ) + VC/Unit b) $3000/150 litres + $6/litre =$4+$6 =$10/litre Is Clearwater correct about the $2.50? Why or why not
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