City Hospital is considering replacing its old X-ray machine…
City Hospital is considering replacing its old X-ray machine with a new X-ray machine. The new machine would produce X-rays faster and at a lower cost per X-ray. The new machine would also use less electricity and would use a color printer to produce higher quality X-ray images. Instead of investing funds in the new X-ray machine for its radiology department, the hospital could buy a new DNA analyzer for its medical laboratory. Which of the following statements regarding the decision to replace the old X-ray machine with a new X-ray machine is not true?
Read DetailsDiscovery Company sell backyard swing sets. Discovery’s budg…
Discovery Company sell backyard swing sets. Discovery’s budgeted sales for the current year were 3,600 units at a selling price of $225 per unit. Actual sales for the current year were 3,300 units at a selling price of $215 per unit. Budgeted variable costs were $166 per unit, and budgeted total fixed costs were $122,000. Actual total variable costs were $518,100 and actual total fixed costs were $126,000. What is Discovery’s flexible budget spending variance for total costs?
Read DetailsBeluga Corporation is considering a capital investment with…
Beluga Corporation is considering a capital investment with a 3-year time horizon. In addition to the upfront cost and salvage value of the new equipment, the project has additional working capital needs. Beluga uses a hurdle rate of 20% to make capital budgeting decisions and performed the following net present value analysis of the project: What is the profitability index of this project? (Round to two decimal points.)
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