Essay About Opportunity Cost And Bike Parts Production Total

Managerial Accounting
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QUESTION NUMBER-1 (21)Opportunity cost- Susan Ortiz:The cost of the two attendants, utilities and the fixed cost are the same, however on the football  Weekend we calculate the opportunity cost as:There are 100 spots for the car * we know the hours its 6 hours * and we know the hourly rate its $6 so it all-to gather comes up to $3600.In shot Susan has no concern with the Sheraton’s offers & normal football crowd, but she should think about her potential customer dis-satisfaction and her upcoming loss in future if all the facilities relating to her business will not be available on a busy football weekend. Question number-2 (1.26)(Wheelworks, Inc. value chain and strategic cost analysis):a)Bike Parts production Total ($)Per bike ($)Revenue if parts were sold in the market 30000030Operating cost less depreciation (100000)(10)Value of the production assets at start and end (1025000-975000)(50000)(5)Cost of capital @12% 12%*1000000(120000)(12)Profit from production 300003 b)Bike assembly Total ($)Per bike ($)Revenue if parts were sold in the market1500000150Operating cost less depreciation(1250000)(125)Value of the production assets at start and end (600000-400000)(200000)(20)Cost of capital @12% 12%*500000(60000)(6)Loss from bike Assembly (10000)(1)c) Distributor Total ($)Per bike ($)Revenue 250000025CGS(1750000)(175)Operating cost include depreciation (330000)(33)Given Cost of capital (40000)(44)Profit to retailer 38000038Note:Based on 10000 units of bike.$1000000= ($1025000+$975000)/2.        $500000= ($600000+400000)/2.Question number 2.23:Franklin L.L.P cost flowAs we know that the cost flow equation is BB + TI = TO + EB We have to find the ending inventory we have the other values so by putting all the other values in the equation