BE20.1 (LO 1) The steps in management's decision-making process are listed in random order below...
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BE20.1 (LO 1) The steps in management's decision-making process are listed in random order below Indicate the order in which the steps should be executed. Review results of the decision Determine and evaluate possible courses of action Make a decision Identify the problem and assign responsibility BE20.2 (LO 1) Bogart Company is considering two alternatives. Alternative A will have revenues of $160,000 and costs of $100,000. Alternative B will have revenues of $180,000 and costs of $125,000. Compare Alternative A to Alternative B showing incremental revenues, costs, and net income. BE20.3 (LO 2) At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player that normally sells for S45. A foreign wholesaler offers to buy 3,000 units at $25 each. Bargain Electronics will incur special shipping costs of $3 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order BE20.4 (LO 3) Manson Industries incurs unit costs of $8 ($5 variable and $3 fixed) in making an assem bly part for its finished product. A supplier offers to make 10,000 of the assembly part at $6 per unit. If the offer is accepted, Manson will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Manson will realize by buying the part. BE20.5 (LO 4) Pine Street Inc. makes unfinished bookcases that it sells for $62. Production costs are $36 variable and $10 fixed. Because it has unused capacity, Pine Street is considering finishing the book- cases and selling them for $70. Variable finishing costs are expected to be $6 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Pine Street should sell unfinished or finished bookcases
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