A retired auto mechanic hopes to open a rustproofing shop. Customers would be local new-car dealers. Two locations are being considered , one in the center of the city and one on the outskirts. The central location would involve fixed monthly costs of $7,000 and labor, materials and transporation cost $30 per car. The outside location would have fixed monthly cost of $4,700 and labor materials, and transporation cost of $40 per car. Dealer price at either location will be $90 per car

which location will yield the greatest profit if monthly demand is (1) 200 cars ? (2) 300 cars?

At what volume of output will the two sites yield the same monthly profit?

Evelyn would like to open a small business that is categorized as a being in the distribution industry. to do this she could open a establishment.

Paar corporation bought 100 percent of kimmel, inc., on january 1, 2012. on that date, paar’s equipment (10-year life) has a book value of $420,000 but a fair value of $520,000. kimmel has equipment (10-year life) with a book value of $272,000 but a fair value of $400,000. paar uses the equity method to record its investment in kimmel. on december 31, 2014, paar has equipment with a book value of $294,000 but a fair value of $445,200. kimmel has equipment with a book value of $190,400 but a fair value of $357,000. the consolidated balance for the equipment account as of december 31, 2014 is $574,000. what would be the impact on consolidated balance for the equipment account as of december 31, 2014 if the parent had applied the initial value method rather than the equity method? the balance in the consolidated equipment account cannot be determined for the initial value method using the information given. the consolidated equipment account would have a higher reported balance. the consolidated equipment account would have a lower reported balance. no effect: the method the parent uses is for internal reporting purposes only and has no impact on consolidated totals.

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