Managerial Accounting: Creating Value in a Dynamic Business Environment
12th Edition
ISBN: 9781260417074
Author: HILTON, Ronald
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 16, Problem 46P
1.
To determine
Prepare a
2.
To determine
State whether the representative of Company W should recommend the given proposal or not.
3.
To determine
Identify the most uncertain and least uncertain data that are used to analysis the given proposals.
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Washington County's Board of Representatives is considering the construction of a longer runway at the county airport.
Currently, the airport can handle only private aircraft and small commuter jets. A new, long runway would enable the
airport to handle the midsize jets used on many domestic flights. Data pertinent to the board's decision appear below.
Cost of acquiring additional land for runway
Cost of runway construction
Cost of extending perimeter fence
Cost of runway lights
Annual cost of maintaining new runway
Annual incremental revenue from landing fees
$ 70,000
200,000
29,840
39,600
28,000
40,000
In addition to the preceding data, two other facts are relevant to the decision. First, a longer runway will require a new
snowplow, which will cost $100,000. The old snowplow could be sold now for $10,000. The new, larger plow will cost
$12,000 more in annual operating costs. Second, the…
Use the following information to answer questions 45-47
[The following information applies to the questions displayed below.]
Washington County's Board of Representatives is considering the construction of a longer runway at the county airport.
Currently, the airport can handle only private aircraft and small commuter jets. A new, long runway would enable the
airport to handle the midsize jets used on many domestic flights. Data pertinent to the board's decision appear below.
Cost of acquiring additional land for runway
Cost of runway construction
Cost of extending perimeter fence
Cost of runway lights
Annual cost of maintaining new runway
Annual incremental revenue from landing fees
$ 60,000
305,000
53,937
30,000
15,000
20,000
In addition to the preceding data, two other facts are relevant to the decision. First, a longer runway will require a new
snowplow, which will cost $105,000. The old snowplow could be sold now for $10,500. The new, larger plow will cost
$6,000 more in annual…
Use the following information to answer Problems 45-47 (Algo)
[The following information applies to the questions displayed below.]
Washington County's Board of Representatives is considering the construction of a longer runway at the county airport.
Currently, the airport can handle only private aircraft and small commuter jets. A new, long runway would enable the
airport to handle the midsize jets used on many domestic flights. Data pertinent to the board's decision appear below.
Cost of acquiring additional land for runway
Cost of runway construction
Cost of extending perimeter fence
Cost of runway lights
Annual cost of maintaining new runway
Annual incremental revenue from landing fees
$78,500
236,770
32,475
43,850
31,400
44,760
In addition to the preceding data, two other facts are relevant to the decision. First, a longer runway will require a new
snowplow, which will cost $117,000. The old snowplow could be sold now for $10,850. The new, larger plow will cost
$13,700 more in…
Chapter 16 Solutions
Managerial Accounting: Creating Value in a Dynamic Business Environment
Ch. 16 - Prob. 1RQCh. 16 - Prob. 2RQCh. 16 - Prob. 3RQCh. 16 - Prob. 4RQCh. 16 - Prob. 5RQCh. 16 - Explain the following terms: recovery of...Ch. 16 - List and briefly explain two advantages that the...Ch. 16 - List and briefly explain four assumptions...Ch. 16 - Prob. 9RQCh. 16 - Prob. 10RQ
Ch. 16 - Give an example of a noncash expense. What impact...Ch. 16 - Prob. 12RQCh. 16 - What is a depreciation tax shield? Explain the...Ch. 16 - Prob. 14RQCh. 16 - Why is accelerated depreciation advantageous to a...Ch. 16 - Prob. 16RQCh. 16 - Why may the net-present-value and...Ch. 16 - Prob. 18RQCh. 16 - What is meant by the term payback period? How is...Ch. 16 - Prob. 20RQCh. 16 - How is an investment projects accounting rate of...Ch. 16 - Prob. 22RQCh. 16 - Prob. 23RQCh. 16 - Prob. 24ECh. 16 - Refer to the data given in the preceding exercise....Ch. 16 - Prob. 26ECh. 16 - Prob. 28ECh. 16 - Prob. 29ECh. 16 - Prob. 30ECh. 16 - Prob. 31ECh. 16 - Prob. 32ECh. 16 - Sharpe Machining Company purchased industrial...Ch. 16 - The owner of Atlantic City Confectionary is...Ch. 16 - The management of Niagra National Bank is...Ch. 16 - Allegience Insurance Companys management is...Ch. 16 - Prob. 37ECh. 16 - Prob. 38ECh. 16 - The states Secretary of Education is considering...Ch. 16 - The supervisor of the county Department of...Ch. 16 - Prob. 41PCh. 16 - Prob. 42PCh. 16 - Prob. 43PCh. 16 - Special People Industries (SPI) is a nonprofit...Ch. 16 - Washington Countys Board of Representatives is...Ch. 16 - Prob. 46PCh. 16 - Prob. 47PCh. 16 - Mind Challenge, Inc. publishes innovative science...Ch. 16 - Philadelphia Fastener Corporation manufactures...Ch. 16 - Prob. 50PCh. 16 - Prob. 51PCh. 16 - Prob. 52PCh. 16 - Prob. 53PCh. 16 - Prob. 54PCh. 16 - Prob. 55PCh. 16 - Prob. 56PCh. 16 - Pensacola Cablevision Company provides television...Ch. 16 - Pensacola Cablevision Company provides television...Ch. 16 - The board of education for the Central Catskill...Ch. 16 - Prob. 60C
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