Top Posters
Since Sunday
5
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
pduvin pduvin
wrote...
Go to Answer
Posts: 679
Rep: 0 0
6 years ago
A company has two manufacturing facilities: one in Alberta that produces a bulk chemical that it sells to many different retailers, and one facility in Ontario that is dedicated to producing a specialty chemical for one client only. The annual profit from the single client is $150,000; and, the profit from the other facility's sales is $1,500,000, after allocating combined fixed costs based on units produced. Another company has offered to lease the Ontario facilities for $250,000.
Which of the following is TRUE?
A) The $250,000 is an opportunity cost of continuing to use the Ontario plant.
B) The company incurred a $250,000 opportunity cost for the past years, but this was not recorded on its books.
C) The company needs to determine the contribution margin for each product before making any decision.
D) Incremental revenues exceed total costs if the plant is rented.
E) Incremental costs exceed incremental revenues if the plant is rented.
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
Read 847 times
12 Replies
Replies
Answer verified by a subject expert
pachopacho
wrote...
#1
Top Poster
Posts: 682
Rep: 38 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
Tatianna Pelletier,  Prabhjot Singh1,  Jasmine Arora
-Michigan State University

Related Topics

wrote...
#2
4 years ago
thanks
wrote...
#3
3 years ago
THank you
wrote...
#4
3 years ago
Thank you
wrote...
#5
3 years ago
Thanks
wrote...
#6
3 years ago
thank you
wrote...
#7
3 years ago
thanks
wrote...
#8
3 years ago
thank you
wrote...
#9
3 years ago
thansk
wrote...
#10
3 years ago
Thabnks
wrote...
#11
3 years ago
thank you
wrote...
#12
3 years ago
Thanks
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1275 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 295
  
 356
  
 510
Your Opinion
What's your favorite funny biology word?
Votes: 328
Previous poll results: Should Ph.D.'s be addressed as doctors?