Swagger Corporation purchases potatoes from farmers. The potatoes are then peeled, producing two intermediate products-peels...

70.2K

Verified Solution

Question

Accounting

image
image
image
image
Swagger Corporation purchases potatoes from farmers. The potatoes are then peeled, producing two intermediate products-peels and depeeled spuds. The peels can then be processed further to make a cocktail of organic nutrients. And the depetied spuds can be processed further to make frozen french fries. A batch of potatoes costs $46 to buy from farmers and $12 to peel in the company/s plant. The peels produced from a batch can be sold as is for animal feed for $28 or processed further for $17 to make the cocktail of nutrients that are sold for $48. The depeeled spuds can be sold as is for $39 or processed further for $28 to makt frozen french fries that are sold for $60. Required: a. Assuming that no other costs are involved in processing potatoes or in selling products, how much money does the company make from processing one batch of potatoes into the cocktail of organic nutrients and frozen french fries? b. Should each of the intermediate products, peels and depeeled spuds, be sold as is or processed further into an end product? Complete this question by entering your answers in the tabs below. Assuming that no other costs are involved in processing potatoes or in selling products. how much money does the company make from processing one botch of potatoes inte the cocktal of organic nutrients and frozen french fries? Swagger Corporation purchases potatoes from tarmers. The potatoes are then peeled, producing two intermediate products-peek and depeeled spuds. The peels can then be processed further to make a cocktail of organic nutrlents. And the depeeled spuds can be processed further to make frozen french fries. A batch of potatoes costs $46 to buy from farmers and $12 to peel in the compamy/s plant. The peels produced from a batch can be sold as is for animal feed for $28 or processed further for $17 to make the cocktall of nutrients that are sold for $48. The depeeled spuds can be sold as is for $39 or processed further for $28 to make frozen french fries that are sold for $60. Required: a. Assuming that no other costs are imvolved in processing potatoes or in selling products, how much money does the company make from processing one batch of potatoes into the cocktail of organic nutrients and frozen french fries? b. Should each of the intermediate products, peels and depeeled spuds, be sold as is or processed further into an end product? Complete this question by entering your answers in the tabs below. Should each of the intermediote products, peels and depeeled spuds, be sold as is or processed further into an end product? (Negative amounts should be indicated by a minus sign.) Assume a company is considering buying 10,000 units of a component part rather than making them. A supplier has agreed to sell the company 10.000 units for a price of $40.50 per unit. The company's accounting system reports the following costs of making the part: One-half of the traceable fixed manufacturing overhead relates to supervisory salaries and the remainder relates to depreciation of equipnent with no salvage value. If the company chooses to buy this component part from a suppliet, then the supervisor who oversees its production would be discharged. What is the financial advantage (disadvantage) of buying 10.000 units from the supplier? Mutiple Choice $35.000 One-half of the traceable foved manufocturing ovechead relates to supervisory salaries and the remahder relates to depreciation of equipment with no salvage value. If the company chooses to buy this component part from a supplier, then the supervisor who oversees its production would be discharged. What is the financlal advantage (disadvantage) of buying 10,000 urits from the supplier? Maltiple Choice $35000 $,35.0001 $70,000 (40,000)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students