föllowingCost FactorSite B170,000$Site APrice of land100,000SMonthly cost of delivering materials S 10,000$ 7,000Cost of equipment setup$ 12,000$ 9,000Cost of utilities per month$ 1,5001,100For site A, an extra $ 60/ day is needed for additional site guards.a- Which site should the contractor select?b- When do the costs of two sites are equals (After how many months of work the costs aresimilar)?

The decision regarding choosing the one alternative over the another is one of the difficult task…

Answered: a- Which site should the contractor…

a- Which site should the contractor select? b- When do the costs of two sites are equals (After how many months of work the costs are similar)?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

föllowing
Cost Factor
Site B
170,000$
Site A
Price of land
100,000S
Monthly cost of delivering materials S 10,000
$ 7,000
Cost of equipment setup
$ 12,000
$ 9,000
Cost of utilities per month
$ 1,500
1,100
For site A, an extra $ 60/ day is needed for additional site guards.
a- Which site should the contractor select?
b- When do the costs of two sites are equals (After how many months of work the costs are
similar)?

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