This topic contains a solution. Click here to go to the answer

Author Question: Premier Corp expects to spend $801,000 in 2017 in appraisal costs if it does not change its incoming ... (Read 173 times)

jwb375

  • Hero Member
  • *****
  • Posts: 540
Premier Corp expects to spend $801,000 in 2017 in appraisal costs if it does not change its incoming materials inspection method. If it decides to implement a new receiving method, it will save $60,300 in fixed appraisal costs and variable costs of $0.50 per unit of finished product. The new method involves $150,000 in training costs and an additional $157,000 in annual equipment rental.

Internal failure costs average $180 per failed unit of finished goods. During 2014, 4% of all completed items had to be reworked. External failure costs average $400 per failed unit. The company's average external failures are 3% of units sold. The company carries no ending inventories, because all jobs are on a per order basis and a just-in-time inventory ordering method is used.

How much will external failure costs change assuming 810,000 units of materials are received and that product failures with customers are cut in half with the new receiving method?
◦ $16,020 increase
◦ $4,860,000 decrease
◦ $2,187,000 decrease
◦ $9,720,000 decrease


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by jwb375 on Mar 6, 2021

lkanara2

  • Sr. Member
  • ****
  • Posts: 329
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 58% of students answer this correctly




jwb375

  • Member
  • Posts: 540
Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)


mochi09

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Excellent

 

Did you know?

Alcohol acts as a diuretic. Eight ounces of water is needed to metabolize just 1 ounce of alcohol.

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

For a complete list of videos, visit our video library