Which one of the following items is least likely to directly impact an equipment replacement capital expenditure decision?

Clear Sky Sailmakers manufactures sails for sailboats. The company is currently producing at maximum capacity. The following information relates to current production: Sales price per unit $250 Variable costs per unit      Manufacturing $165      Marketing and admin  $50 Total fixed costs      Manufacturing $750,000      Marketing and admin $200,000 If a special sales order is accepted for 5,000 sails at a price of $225 per unit, and fixed costs remain unchanged, how would operating income be affected?

A capital budgeting project is accepted if the hurdle rate equals or exceeds the internal rate of return.

Starkvegas Inc. manufactures helicopters. It has just completed manufacturing the first newly designed helicopter, R2-D2. Manufacturing data follows:               Direct Material Cost   $124,000 per unit Direct Labor for First Unit  7,200 hours Learning Curve  85% cumulative average time* Direct manufacturing labor cost  $25 per direct labor hour Variable manufacturing overhead cost  $11 per direct labor hour       *for an 85% learning curve, b = -0.234465   What is the total variable cost to produce 8 helicopters?

The effect of a plant closing on employee morale is an example of which of the following?

Whitney Purple Studio is considering replacing its existing delivery van with a new one. The new van can offer considerable savings in operating costs. Information about the existing van and the new van follow: Existing van New van Original cost $50,000 $90,000 Annual operating cost $ 17,500 $ 10,000 Accumulated depreciation $ 30,000 — Current salvage value of the existing van $ 22,500 — Remaining life 10 years 10 years Salvage value in 10 years $ 0 $ 0 Annual depreciation $ 2,000 $ 9,000 If Whitney Purple Studio replaces the existing delivery van with the new one, over the next 10 years operating income will ________.

Use the following information to answer the last 6 questions:   Richey Inc. had the following budget information for 2019: Budgeted Quantity Budgeted Price Direct materials 0.25 pounds $15 per pound Direct labor 0.20 hours $20 per hour In the month of September, Richey Inc. manufactured and sold 10,000 plastic bins. Richey Inc. used 2000 pounds of material costing $31,000 and spent $22,800 on direct labor at an average rate of $19/hour.  

  Tú  vas a ___________________ de negro para el funeral, ¿verdad? (vestirse)

Budgeting slack may result in underestimating revenue or overestimating costs in the budget process.

Which of the following can be a reason for a favorable price variance for direct materials?