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

Author Question: Cysco Corp has a budget of $1,210,000 in 2017 for prevention costs. If it decides to automate a ... (Read 550 times)

jace

  • Hero Member
  • *****
  • Posts: 541
Cysco Corp has a budget of $1,210,000 in 2017 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $108,000 in variable costs. The new method will require $50,400 in training costs and $145,000 in annual equipment costs. Management is willing to adjust the budget for an amount up to the cost of the new equipment. The budgeted production level is 206,000 units.

Appraisal costs for the year are budgeted at $510,000. The new prevention procedures will save appraisal costs of $50,600. Internal failure costs average $32 per failed unit of finished goods. The internal failure rate is expected to be 4% of all completed items. The proposed changes will cut the internal failure rate by one-half. Internal failure units are destroyed. External failure costs average $50 per failed unit. The company's average external failures average 2.7% of units sold. The new proposal will reduce this rate to 1%. Assume all units produced are sold and there are no ending inventories.

How much will internal failure costs change if the internal product failures are reduced by 40% with the new procedures?
◦ $151,360 decrease
◦ $134,400 decrease
◦ $105,472 decrease
◦ $87,000 increase


Related Topics

Need homework help now?

Ask unlimited questions for free

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

deja

  • Sr. Member
  • ****
  • Posts: 332
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 35% of students answer this correctly




jace

  • Member
  • Posts: 541
Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)


TheNamesImani

  • Member
  • Posts: 334
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Adults are resistant to the bacterium that causes Botulism. These bacteria thrive in honey – therefore, honey should never be given to infants since their immune systems are not yet resistant.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Though newer “smart” infusion pumps are increasingly becoming more sophisticated, they cannot prevent all programming and administration errors. Health care professionals that use smart infusion pumps must still practice the rights of medication administration and have other professionals double-check all high-risk infusions.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

For a complete list of videos, visit our video library