Name:
Section:
Score: 0%
Key Code:
a.
Differential revenue from alternatives:
Revenue from lease
Proceeds from sale
b.
Is it advisable to lease or sell the machinery?
Exercise 12-1
.
Instructions
2
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YAMADA INDUSTRIES
Proposal to Lease or Sell Machinery
Name:
Section:
Score: See student sheet for student’s score
Scoring
a.
Differential revenue from alternatives:
Revenue from lease 290,000$
Proceeds from sale 200,000
b.
Is it advisable to lease or sell the machinery? Lease
Explain:
SOLUTION
ON
YAMADA INDUSTRIES
Proposal to Lease or Sell Machinery
Name:
Section:
Score: 0%
Key Code:
1.
Differential revenue from alternatives:
Revenue from operating warehouse
Revenue from investment in bonds
2.
Should the proposal to operate the warehouse be accepted?
3.
Total estimated revenue from operating warehouse
Total estimated expenses to operate warehouse:
Proposal to Operate Warehouse
Problem 12-1
Instructions
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FIVE STAR
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2
Name:
Section:
Score: See student sheet for student’s score
Scoring:
1.
Differential revenue from alternatives:
Revenue from operating warehouse 4,800,000$
Revenue from investment in bonds 540,000
2.
Should the proposal to operate the warehouse be accepted? Yes
3.
Total estimated revenue from operating warehouse 4,800,000$
Proposal to Operate Warehouse
ON
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Problem 12-1
SOLUTION
Instructions
FIVE STAR
Name:
Section:
Score: 0%
Key Code:
1.
Annual manufacturing costs associated with present machine
2.
Should the proposal to replace the machine be accepted?
CATALINA TOOLING COMPANY
Indicate which of the following questions are important in determining whether the proposal should be
accepted and the old machine replaced.
Proposal to Replace Machine
2
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Problem 12-2
Instructions
Name:
Section:
Score: See student sheet for student’s score
Scoring:
1.
Annual manufacturing costs associated with present machine 33,150$
Annual manufacturing costs associated with proposed new machine 18,200
2.
Should the proposal to replace the machine be accepted?
Important?
Problem 12-2
SOLUTION
Instructions
Proposal to Replace Machine
ON
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Indicate which of the following questions are important in determining whether the proposal should be
accepted and the old machine replaced.
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CATALINA TOOLING COMPANY
Yes, unless there is another opportunity that would yield higher differential income
Name:
Section:
Score: 0%
Key Code:
a.
Bowls Plates Cups
Differential revenue from monthly sales:
Revenue from sales
b.
Should the Cups line be retained?
Explain:
Instructions
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DINNER WARE COMPANY
2
Exercise 12-3
Differential Product Analysis Report
Name:
Section:
Score: See student sheet for student’s score
Scoring:
a.
Bowls Plates Cups
Differential revenue from monthly sales:
Revenue from sales 1,500,000$ 2,350,000$ 975,000$
b.
Should the Cups line be retained? Yes
Exercise 12-3
SOLUTION
Instructions
DINNER WARE COMPANY
ON
Differential Product Analysis Report
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Name:
Section:
Score: 0%
Key Code:
1.
Cross-Trainer Running
Shoe Shoe
Differential revenue from proposals
Differential costs of proposals:
2.
Should the proposal for the sales campaign be accepted?
Explain (select from the drop-down list):
ROCKET SHOE COMPANY
Proposals for Sales Promotion Campaign
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Problem 12-3
Instructions
2
Name:
Section:
Score: See student sheet for student’s score
Scoring:
1.
Cross-Trainer Running
Shoe Shoe
Differential revenue from proposals 2,250,000$ 2,016,000$
Differential costs of proposals:
2.
Should the proposal for the sales campaign be accepted? No
Proposals for Sales Promotion Campaign
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Problem 12-3
SOLUTION
Instructions
ROCKET SHOE COMPANY
ON
Name:
Section:
Score: 0%
Key Code:
a.
Purchase price of carrying case
b.
Is it advisable to make or buy the manufacturing case?
2
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Exercise 12-6
Instructions
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BALBOA TECHNOLOGIES COMPANY
Proposal to Manufacture Carrying Case
Name:
Section:
Score: See student sheet for student’s score
Scoring:
a.
Purchase price of carrying case 20.00$
b.
Is it advisable to make or buy the manufacturing case? Make
ON
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BALBOA TECHNOLOGIES COMPANY
Proposal to Manufacture Carrying Case
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Exercise 12-6
SOLUTION
Instructions
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