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Home / Questions / Cybil Baunt just inherited a 1958 Chevy Impala from her late Aunt Joop. Aunt Joop purchased the car

Cybil Baunt just inherited a 1958 Chevy Impala from her late Aunt Joop. Aunt Joop purchased the car

Cybil Baunt just inherited a 1958 Chevy Impala from her late Aunt Joop. Aunt Joop purchased the car 40 years ago for $6,000. Cybil is either going to sell the car for $8,000 or have it restored and sell it for $22,000. The restoration will cost $6,000. Cybil would be better off by:$2,000 to have the vehicle restored$6,000 to have the vehicle restored$8,000 to have the vehicle restored$10,000 to have the vehicle restored9)Alternative AAlternative BMaterials costs$33,000$53,000Processing costs$38,000$57,000Equipment rental$11,000$11,000Occupancy costs$18,000$29,000What is the differential cost of Alternative B over Alternative A, including all of the relevant costs?$150,000$100,000$125,000$50,00010)Nicklin Corporation is considering two alternatives that are, code-named M and N. Costs associated with the alternatives are listed below:Alternative MAlternative NSupplies costs$74,000$65,000Assembly costs$46,000$46,000Power costs$26,000$39,500Inspection costs$39,000$28,000Required:A.’ Which costs are relevant and which are not relevant in the choice between these two alternatives?B.What is the differential cost between the two alternatives?

 

Apr 27 2020 View more View Less

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