ACCT 346 Week 4 Midterm 2 / acct346dotcom

(TCO 7) Ricket Company has 1,500 obsolete calculators that are carried in inventory at a costof $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 netadvantage or disadvantage of reworking the calculators?12. Question :(TCO 7) YXZ Company’s market for the Model 55 has changed significantly, and YXZ hashad to drop the price per unit from $275 to $135. There are some units in the work in processinventory that have costs of $160 per unit associated with them. YXZ could sell these units intheir current state for $100 each. It will cost YXZ $10 per unit to complete these units so thatthey 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-incosts?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 shouldcontinue 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 equipmentcan increase by 13%. Allocated fixed costs are assigned based on relative sales.ComputerHome OfficeEquipmentFurniture3. Question :(TCO 4) The following monthly data are available for RedEx, which produces only oneproduct that it sells for $84 each. Its unit variable costs are $28 and its total fixed expensesare $64,960. Sales during April totaled 1,600 units.