Use the Information Below to Answer the Following Question(s)

question 51

Multiple Choice

Use the information below to answer the following question(s) .Teddy Bear Company sold a total of 30,000 stuffed tigers and lions.During August the following information was gathered:

-What is the Teddy Bear Company total sales-quantity variance?

• A)$21,600 favourable
• B)$13,750 favourable
• C)$13,750 unfavourable
• D)$4,500 favourable
• E)$4,500 unfavourable

Determine the opportunity costs involved in make-or-buy decisions.

Calculate avoidable fixed costs and their impact on make-or-buy decisions.

Understand the relevance of incremental costs and revenues in decision-making.

Analyze relevant costs in retain or replace equipment decisions.

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Definitions:

Treasury Stock

Shares that were once in circulation but were bought back by the issuing company, decreasing the amount of stock outstanding.

Par Common Stock

The nominal or face value assigned to a share of common stock by the company's corporate charter.

Fair Market

The price at which an asset would change hands between a willing buyer and a willing seller, both having reasonable knowledge of the relevant facts.

Total Assets

The total value of everything a company owns, encompassing both current assets and long-term assets.