Answer the following question(s)using the information below.John's 8-year-old Chevrolet Trail Blazer requires repairs estimated at $6,000 to make it roadworthy again.His wife, Sherry, suggested that he should buy a 5-year-old used Jeep Grand Cherokee instead for $6,000 cash.Sherry estimated the following costs for the two cars:

-Boyd Tool Company is a tool manufacturer.Production capacity is 3,000 units per month; however, they are considering alternative ways to increase capacity to 3,500 units.One of the alternatives involves purchasing new equipment.In this alternative, there are two choices: machine A will provide increased capacity of 4,000 units per month, with unit costs of $14 at capacity; and, machine B will increase capacity to 3,600 units per month with unit costs of $15 at capacity.Both machines are adequate since Boyd's does not intend to go beyond the 3,500 units per month level for the foreseeable future.Relevant information for this decision includes
A)whether other costs will change solely due to a capacity increase.
B)the different unit cost of production between the two machine at their capacity levels.
C)Boyd's planned capacity utilization.
D)excess capacity of either machine.
E)the different unit cost of production between the two machines at Boyd's planned capacity levels.

Question

Answer the following question(s)using the information below.John's 8-year-old Chevrolet Trail Blazer requires repairs estimated at $6,000 to make it roadworthy again.His wife, Sherry, suggested that he should buy a 5-year-old used Jeep Grand Cherokee instead for $6,000 cash.Sherry estimated the following costs for the two cars:
 
-Boyd Tool Company is a tool manufacturer.Production capacity is 3,000 units per month; however, they are considering alternative ways to increase capacity to 3,500 units.One of the alternatives involves purchasing new equipment.In this alternative, there are two choices: machine A will provide increased capacity of 4,000 units per month, with unit costs of $14 at capacity; and, machine B will increase capacity to 3,600 units per month with unit costs of $15 at capacity.Both machines are adequate since Boyd's does not intend to go beyond the 3,500 units per month level for the foreseeable future.Relevant information for this decision includes
A)whether other costs will change solely due to a capacity increase. 
B)the different unit cost of production between the two machine at their capacity levels. 
C)Boyd's planned capacity utilization. 
D)excess capacity of either machine. 
E)the different unit cost of production between the two machines at Boyd's planned capacity levels.

Quizplus · Accepted Answer

The Answer of Answer the following question(s)using the information below.John's 8-year-old Chevrolet Trail Blazer requires repairs estimated at $6,000 to make it roadworthy again.His wife, Sherry, suggested that he should buy a 5-year-old used Jeep Grand Cherokee instead for $6,000 cash.Sherry estimated the following costs for the two cars:
 
-Boyd Tool Company is a tool manufacturer.Production capacity is 3,000 units per month; however, they are considering alternative ways to increase capacity to 3,500 units.One of the alternatives involves purchasing new equipment.In this alternative, there are two choices: machine A will provide increased capacity of 4,000 units per month, with unit costs of $14 at capacity; and, machine B will increase capacity to 3,600 units per month with unit costs of $15 at capacity.Both machines are adequate since Boyd's does not intend to go beyond the 3,500 units per month level for the foreseeable future.Relevant information for this decision includes
A)whether other costs will change solely due to a capacity increase. 
B)the different unit cost of production between the two machine at their capacity levels. 
C)Boyd's planned capacity utilization. 
D)excess capacity of either machine. 
E)the different unit cost of production between the two machines at Boyd's planned capacity levels.

Answer the Following Question(s)using the Information Below