Asmall producer of machine tools wants to move to a larger building, and has identified two alternatives. location a has annual fixed costs of $125,000 and variable costs of $16,000 per unit; location b has annual fixed costs of $325,000 and variable costs of $15,000 per unit. the finished items sell for $18,000 each.

1. at what volume of output would the two locations have the same total cost?
2. for what range of output would location a be superior?
3. for what range would b be superior?

When slick heating company switched to an activity based costing system, it realized that it was allocating a much lower percentage of factory overhead to a product line that the marketing department was trying to push. the product line may contain which type of products?

mary's baskets company expects to manufacture and sell 30,000 baskets in 2019 for $5 each. there are 4,000 baskets in beginning finished goods inventory with target ending inventory of 4,000 baskets. the company keeps no work-in-process inventory. what amount of sales revenue will be reported on the 2019 budgeted income statement?

In early january, burger mania acquired 100% of the common stock of the crispy taco restaurant chain. the purchase price allocation included the following items: $4 million, patent; $3 million, trademark considered to have an indefinite useful life; and $5 million, goodwill. burger mania's policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a five-year service life. what is the total amount of amortization expense that would appear in burger mania's income statement for the first year ended december 31 related to these items?