
Chapter 4
Relevant Costs for Nonroutine Operating Decisions
MULTIPLE CHOICE QUESTIONS
4.13.
Ans: C
4.14.
Ans: B
4.15.
Ans: D
4.16.
Ans: A
4.17.
Ans: B
EXERCISES
4.18
A. Savings if decision is to make $ 6
B. Savings if decision is to buy $14
4.20
A. Q = 563 snowboard
B. $245 / snowboard
C. Incremental profit for 200 snowboards = 0
4.21
A. 125 batches of Dip and 50 batches of Soft.
B. Total CM is $8,250
C. Mixing - $0.75 / minute
Baking - $0.875 / minute
D. mixing and baking
E. $35 per batch to $75
4.22
B. $4.40 per pound for more fish.