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Answer the Following Questions Using the Information Below

question 59

Multiple Choice

Answer the following questions using the information below:
Mildura Products has a budget of $1 200 000 in 2018 for prevention costs.If it decides to automate a portion of its prevention activities,it will save $75 000 in variable costs.The new method will require $24 000 in training costs and $145 000 in annual equipment costs.Management is willing to adjust the budget for an amount up to the cost of the new equipment.The budgeted production level is 210 000 units.
Appraisal costs for the year are budgeted at $500 000.The new prevention procedures will save appraisal costs of $35 000.Internal failure costs average $20 per failed unit of finished goods.The internal failure rate is expected to be 4% of all completed items.The proposed changes will cut the internal failure rate by one-half.Internal failure units are destroyed.External failure costs average $48 per failed unit.The company's average external failures average 2.5% of units sold.The new proposal will reduce this rate to 1%.Assume all units produced are sold and there are no ending inventories.
-How much will internal failure costs change if the internal product failures are reduced by 50% with the new procedures?

Comprehend the capitalization of retained earnings for both small and large stock dividends.

Understand the various types of preferred stock and their features regarding dividends.

Recognize the accounting for the issuance of common and preferred stock.

Understand the reasons corporations might buy back their own stock and the implication of treasury stocks.

Definitions:

Germany

A country in Central Europe, known for its rich history, culture, and contributions to art, science, and economy.

Italy

A country located in southern Europe, known for its rich history, art, architecture, fashion, and cuisine.

Intrapersonal Goal Conflict

Intrapersonal goal conflict occurs when an individual faces opposing desires or objectives within themselves, leading to difficulty in decision-making or action.

Approach-Approach

A type of conflict situation where an individual must choose between two desirable options.