Hmcost3e Sm Ch12

8/19/2019 Hmcost3e Sm Ch12

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CHAPTER 12ACTIVITY-BASED MANAGEMENT

DISCUSSION QUESTIONS

1. The two dimensions are the cost dimensionand the process dimension. The costdimension is concerned with accurateassignment of costs to cost objects, such asproducts and customers. Activity-basedcosting is the focus of this dimension. Thesecond dimension—the process dimension—provides information about why work is doneand how well it is done. It is concerned withcost driver analysis, activity analysis, andperformance measurement. This dimensionoffers the connection to the continuous

improvement world found in the advancedmanufacturing environment.

2. river analysis is concerned with identifyingthe root causes of activity costs. !nowingthe root causes of activity costs is the key toimprovement and innovation. "nce amanager understands why costs are beingincurred, then efforts can be taken toimprove cost efficiency. river analysis is apart of process value analysis—along withactivity analysis and performancemeasurement.

3 Activity analysis is concerned with

identifying activities performed by anorgani#ation, assessing their value to theorgani#ation, and selecting and keepingonly those that are value-added. $electingand keeping value-added activities bringabout cost reduction and greater operatingefficiency, thus providing support for theobjective of continuous improvement.

4. %alue-added activities are necessaryactivities. Activities are necessary if they aremandated or if they are not mandated andsatisfy three conditions& '() they cause achange of state, '*) the change of state is not

achievable by preceding activities, and'+) they enable other activities to beperformed. %alue-added costs are costscaused by activities that are necessary andefficiently eecuted.

5. on-value-added activities are unnecessaryactivities or necessary activities that areinefficient and improvable. An eample ismoving goods. on-value-added costs are

those costs caused by non-value-addedactivities. An eample is the cost of materialshandling.

6. '() Activity elimination& the identification andelimination of activities that fail to addvalue. '*) Activity selection& the process of choosing among different sets of activitiescaused by competing strategies. '+) Activityreduction& the process of decreasing thetime and resources reuired by an activity.'/) Activity sharing& increasing the efficiencyof necessary activities using economies of

scale.

7. A kai#en standard is the planned improvementfor the coming period. The kai#en subcycleimplements the improvement, checks it, locksit in, and then begins a search for additionalimprovements. The maintenance subcyclesets a standard based on prior improvements,eecutes, and checks the results to make surethat performance conforms to the new results.If not, then corrective action is taken.

8. 0enchmarking identifies the best practices of comparable internal and eternal units. 1or internal units, information can be gatheredthat reveals how the best unit achieves itsresults2 these procedures can then beadopted by other comparable units. 1or eternal units, the performance standardprovides an incentive to find ways to matchthe performance. 'It may sometimes bepossible to determine the ways theperformance is achieved.)

9. Activity fleible budgeting differs from unit-based fleible budgeting by using fleiblebudget formulas based on both unit-leveland non-unit-level drivers. 3nit-basedfleible budgeting uses only unit-level

drivers in its formulas.

1. 4lanning should identify the purposes andobjectives of an A05 system, its timeline for implementation, the assignedresponsibilities, the resources reuired, thecurrent and desired future competitiveposition, the business processes and productmi, and the ability of the organi#ation to

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accessible !ebsite, in !hole or in part.


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implement the new system and learn how touse the new information produced.

11. A05 focuses on improving the efficiency of activities and thus needs detailed descriptionsof what makes up each activity. !nowing thetasks that define an activity makes it possible

to change the way the activity is done so thatoverall activity performance improves.

12. An A05 implementation may losemanagement6s support if it takes too long or if it fails to produce the epected results."ften, the epected results do notmateriali#e because managers do not knowhow to use the new information, suggestinga lack of training and education in the newsystem6s capabilities. If the advantages of the new A05 system are not detailed, thenmanagers are likely to resist the newsystem.

13. A lack of integration often means that A05is in direct competition or is perceived to bein direct competition with other continuousimprovement methods and the officialaccounting system. This state may causemanagers to reject the new A05approaches and rely on continuousimprovement methods and accounting

information with which they are alreadyfamiliar.

14. A financial-based responsibility accountingsystem is characteri#ed by four elements&'() a responsibility center, whereresponsibility is assigned to an individual in

charge 'responsibility is usually defined infinancial terms)2 '*) the setting of budgetsand standards to serve as benchmarks for performance measurement2 '+)measurement of performance by comparingactual outcomes with budgeted outcomes2and '/) individuals being rewarded or penali#ed according to managementpolicies.

15. In an activity-based responsibility accountingsystem, the focus of control shifts fromresponsibility centers to processes andteams. 5anagement is concerned with how

work is done, not with where it is done.4rocessimprovement and process innovation areemphasi#ed. $tandards tend to be optimal,dynamic, and process oriented. 4erformancemeasurement focuses on processes andactivities that define the processes. 1inally,there tends to be more emphasis on grouprewards rather than on individual rewards.




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CORNERSTONE E!ERCISES

C"#$%#&'"$% E(%#)*&% 12.1

1. V+,% +$ N"$-V+,%-A% C"&' R%/"#'

0"# '% Y%+# E$% 215V+,%-A% N"$-V+,%- Added Total

Activity 7osts 7osts 7osts8eceiving......................... 9 *:*,;;; 9(*,;;;

Assembly.......................... (,(*:,;;; **:,;;; (,+:;,;;;?pediting........................ ; +;;,;;; +;;,;;;$toring.............................. ; >/,;;; >/,;;;

Total............................. 9(,+==,;;; 9=+:,;;; 9*,((*,;;;

2. B"' %(/%*'*$ +$ &'"#*$ +#% $$%)%&&+# +)'**'*%&. B"' &% #%&"#)%&*'"' #*$*$ +"' +$ )+$% " &'+'%.

3. 0"# #%)%**$ )"&' #%)'*"$ "))#& "$, %$ '% +)'+, %+$ "# #%)%**$ "#%#& *& #%)% %+) ,"): " 15 "#%#&. 0"# +&&%,%+) "# &+% /#")%& + &+*$& " ;15. A))"#*$, #%)'*"$ *$&/%$*$ *,, ,*:%, +'%#*+,*


4/31

C"#$%#&'"$% E(%#)*&% 12.2 ?C"$),%@

3. 0#" R%=*#%%$' 1 '% &+*$& /%# $*' " /#")' +#% ;24.9?;4982@ *$*)+'*$ '+' '% )"/%'*'"#& /#*)% #%)'*"$ )+$$"' %+')% ?"# %+'@ *'"' )+$*$ '% $*' /#"*' +#*$ '+' %(*&'% +' '%%*$$*$ " '% %+#. A$"'%# ;2.1 /%# $*' ?;422@ " $"$-+,%-+% )"&' &' % #%)%. I ", #%)"%$ +')*$ '% /#*)%#%)'*"$ '" %$&#% $" ,"&& " +#:%' &+#% *' '% %(/%)'+'*"$ '+' '%$%(' %+# */#"%%$' *,, /#")% +' ,%+&' +$"'%# ;42 " &+*$&.

C"#$%#&'"$% E(%#)*&% 12.3

1. S%'/ &'+$+#> 1 "#& /%# +') E(/%)'% )"&' /%# +')> ;2 ?1 ;2@ +*


5/31

C"#$%#&'"$% E(%#)*&% 12.4 ?C"$),%@

2. A)'**'-B+&% P%#"#+$)% R%/"#'B%'% C"&' B%'

A)'**' A)'+, C"&' ?9 ,%%,@J V+#*+$)%JJF%,*$>

0*(% )"&'........................ ;363 ;348 ;15 UV+#*+,% )"&'................... 85 81 5 0

J;348 ?*(%@ ;1 .9 9 ?+#*+,%@JJA)'+, )"&' ,%&& %'% )"&'

3. F%,*$ )"&' ;48 ;13 X ?T% )"&' " %,*$ %=*/%$' *& *(% '%+#*+,% )"&' *& '% ;3 /%# "# " )"$'#+)' %,*$ ,+"# /,& '% ;1/%# "# "# /+#'& +$ &//,*%&.@

C"#$%#&'"$% E(%#)*&% 12.5

1. P#)+&*$ *& + +,%-+% +)'**' *' SQ 7. T&V",% +#*+$)% ? AQ K SQ @SP

?12 K 7@;19J ;95 U

JA)'**' #+'% ?;456 5@12

T% ",% +#*+$)% *& + %+&#% " '% $"$-+,%-+% )"&'. I$ '*& )+&%"$, +"' 42 /%#)%$' " '% '"'+, +)'**' )"&' *& $"$-+,%-+%.M+$+%%$' &", &'#*% '" *$ +& '" #%)% +$ %%$'+,, %,**$+'%'% $"$-+,%-+% )"/"$%$' " '% /#)+&*$ +)'**'.

2. U$&% )+/+)*' +#*+$)% ? AU K AQ @SP ?16 K 12@;19 ;266 0

T% %+$ "# '% +)'**' +& %%$ #%)% "%%# %)+&% " '% &'%/-*(% )"&' $+'#% " /#)+&*$ ,+"# '% #%)'*"$ *& $"' &*)*%$' '"/#")% + #%)'*"$ *$ +)'**' &/%$*$.

3. R%)+,),+'*$ '% $&% )+/+)*' +#*+$)%>

U$&% )+/+)*' +#*+$)% ? AU K AQ @SP ?9 K 12@;19 ;57 0

A' '*& ,%%, " %+$ "$, "# *$&/%)'"#& +#% $%%% '" %%' '% %+$'& #%&"#)% &/%$*$ )+$ % #%)% ;456. I "$, 7 "#%#& +#%$%%% '%$ 724 2.92 *) */,*%& '+' '#%% /#)+&*$ +%$'&*,, % #%=*#%. T& #%&"#)% &/%$*$ )+$ % #%)% '% )"&' " '"+%$'&> 2 ;456 ;912. T*& *& '% +(* #%)'*"$ * SQ *&#%+)%.




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E!ERCISES

E(%#)*&% 12.6

1. P,+$'*% #+'% ?;54 ;36 ;18@9

;12 /%# +)*$% "# U$*' "%#%+ )"&' ?;12 5@1 ;6

A)'**' #+'%&>M+)*$*$ #+'% ;549 ;6 /%# +&&%, "# I$&/%)'*"$ #+'% ;3645 ;8 /%# *$&/%)'*"$ "# R%"#: #+'% ;1845 ;4 /%# #%"#: "#

T"'+, "%#%+ )"&' ?;6 5@ ?;8 1@ ?;4 75@ ;41

U$*' "%#%+ )"&' ;411 ;41

I/#"*$ '% +))#+) #%)% '% )"&' ;19 *) *& &'*,, ,%&& '+$ '%;2 #%)'*"$ $%%%. F+' '*& %+$& *& '+' +,'" +))#+) +& +/"&*'*% %%)' "$ '% /#*)% *' *& $"' '% "$, /#",%. I' +//%+#& '+')"/%'*'"#& + % "#% %*)*%$' '+$ H+#%. T*& "')"% '%$ &*$+,&'% $%% '"#%)% )"&'&.

2. S*$)% *$&/%)'*"$ +$ #%"#: )"&'& +$ '%*# +&&")*+'% '*% +#% "'#%)% 5 /%#)%$' '% +)'**' #+'%& #%+*$ '% &+% +,'" '%+"$' " )"&' +&&*$% '" '% S/%)*+, "%, *,, )+$%>

T"'+, "%#%+ )"&' ?;6 5@ ?;8 5@ ?;4 375@

;355U$*' "%#%+ )"&' ;3551 ;35.5

T% )"&' $" *& ;24.5 ,%&& '+$ '% "#**$+, *) +,,"& +$+%%$' '"#%)% '% /#*)% ;2 *$)#%+&*$ '% )"/%'*'*% /"&*'*"$ " '% S/%)*+,"%,. ABC *& )"$)%#$% *' " )"&'& +#% +&&*$% %#%+& ABM *& $"'"$, )"$)%#$% *' " '% +#% +&&*$% ' +,&" *' " )"&'& )+$ %#%)%. C"&' +))#+) +$ )"&' #%)'*"$ +#% '% +, '%%& " ABM.

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7/31

E(%#)*&% 12.7

T% ",,"*$ +#% /"&&*,% &%'& " =%&'*"$& +$ +$&%#& ?/#"*% +& %(+/,%&" +' &'%$'& + &%&'@>

C,%+$*$ "*,>

Q%&'*"$> F *& '% "*, /,% ),%+$% +*,LA$&%#> B%)+&% '% /#")'*"$ %=*/%$' ,%+:& "*, %%# +.

Q%&'*"$> F "%& '% /#")'*"$ %=*/%$' ,%+: "*,LA$&%#> B%)+&% + &%+, *& ++% ?#""' )+&%@.

Q%&'*"$> H" " % #%/+*# '% ++% &%+,LA$&%#> B #%/,+)*$ *'.

P#"**$ &+,%& +,,"+$)%&>

Q%&'*"$> F +#% % **$ &+,%& +,,"+$)%&LA$&%#> B%)+&% '% /#")' *& $"' "#:*$ +& *' &",.

Q%&'*"$> F *& '% /#")' $"' "#:*$ +& *' &",LA$&%#> U&+,, %)+&% *' +& + %%)'*% )"/"$%$'.

Q%&'*"$> F "%& *' +% + %%)'*% )"/"$%$'LA$&%#> B%)+&% "# &+&&%, /#")%&&%& "))+&*"$+,, /#")% +

)"/"$%$'&.

Q%&'*"$> F " "# &+&&%, /#")%&&%& /#")% + )"/"$%$'&LA$&%#> B%)+&% "# "#:%#& +#% $"' +& %,, '#+*$% +& '% &", % ?#""'

)+&%@.

Q%&'*"$> H" " % */#"% '% &:*,,& " "# "#:%#&LA$&%#> B %$&#*$ '+' '% +,, /+&& + #*"#"& '#+*$*$ )"#&%.

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8/31

E(%#)*&% 12.8

N"$-+,%-+%>

C"/+#*$ ")%$'& ?&'+'% %'%)'*"$@;144 ?.12 ;12@R%&",*$ *&)#%/+$)*%& ?#%"#:@ ;876 ?.73 ;12@

V+,%-+%>

P#%/+#*$ )%):&;12 ?.1 ;12@M+*,*$ )%):& ;6 ?.5 ;12@

E(%#)*&% 12.9

Q%&'*"$& 2K6 #%/#%&%$' + /"&&*,% &%=%$)% "# '% +)'**' " )"/+#*$")%$'& +$ Q%&'*"$& 1 +$ 3K6 #%/#%&%$' + /"&&*,% &%=%$)% "# #%&",*$*&)#%/+$)*%&. T% '" +)'**'*%& +% + )""$ #""' )+&%.

Q%&'*"$ 1> F +#% % #%&",*$ *&)#%/+$)*%&LA$&%#> B%)+&% '% /#)+&% "#%# #%)%**$ "#%# +$ *$"*)% +% %%$

)"/+#% +$ "$ '" % *$ *&+#%%%$'.

Q%&'*"$ 2> F +#% ")%$'& %*$ )"/+#%LA$&%#> B%)+&% '% + $"' +#%%.

Q%&'*"$ 3> F ", '% ")%$'& $"' +#%%L

A$&%#> B%)+&% "$% "# "#% + % #"$.

Q%&'*"$ 4> F ", + ")%$' % #"$LA$&%#> B%)+&% '% +"$' #%)%*% #" '% &//,*%# + $"' )"##%&/"$

'" '% +"$' "#%#% "# %)+&% '% +"$' *,,% + $"')"##%&/"$ '" '% +"$' #%)%*% "# "'.

Q%&'*"$ 5> F +#% '% +"$'& *%#%$'LA$&%#> B%)+&% " ),%#*)+, %##"#%*'%# & "# '% &//,*%#.

Q%&'*"$ 6> H" )+$ % +"* ),%#*)+, %##"#L

A$&%#> T#+*$*$ "# "# ),%#:& *,, #%)% '% $%# " *&)#%/+$)*%& "#&//,*%#& %('#+ '#+*$*$ +$ )+#% )+$ % &%&'% %#% '%#% *&%*%$)% " + /#",%.

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9/31

E(%#)*&% 12.1

1. A /#")%&& *& + )",,%)'*"$ " +)'**'*%& *' + )""$ "%)'*%. T% )""$"%)'*% " /#")#%%$' *& '" &//, "' +$ /+*-"# +'%#*+,& '""/%#+'*"$& ?%.. '% +$+)'#*$ /#")%&&@. T% )""$ "%)'*% " /#)+&*$ *& '" /#")% + #%=%&' "# +'%#*+,& #" &//,*%#& '% )""$"%)'*% " #%)%**$ *& '" /#")%&& +'%#*+,& #" &//,*%#& +$ "% '%'" '% "/%#+'*"$& +#%+ ?%.. &'"#%& "# +$+)'#*$@ '% )""$ "%)'*%" /+*$ *,,& *& '" /+ "# '% +'%#*+,& #%)%*% #" &//,*%#&.

2. T% %%)' *& '" #%)% '% %+$ "# '% +)'**' " #%&",*$ *&)#%/+$)*%& 3 /%#)%$'. B &" "*$ T+$% *,, &+% 21.9 /%#)%$' ?.3 .73@ " *'&),%#*)+, '*%. T& +"' &*( ),%#:& )+$ % %,**$+'% #%+&&*$*$ '%'" "'%# +#%+& "# &*/, ,+*$ '% ". ?3 .219 6.57 ),%#:& ' "$, 6)+$ % %,**$+'% "# #%+&&*$% %)+&% '% +#% ,/ #%&"#)%&@. T*&*,, /#")% &+*$& " +"' ;;24 ?6 ;4@ /%# %+#. T*& *& +$%(+/,% " /#")%&& */#"%%$'+$ *$)#%%$'+, *$)#%+&% *$ /#")%&&

%*)*%$) #%&,'*$ *$ + )"&' #%)'*"$.

E(%#)*&% 12.11

EDI %,**$+'%& '% %+$ "# *#'+,, +,, '% +)'**'*%& *'*$ '% *,,-/+*$/#")%&&. S"% %+$ + % ,%' "# /+%$' +)'**'*%& #%,+'*% '" '%+)=*&*'*"$ " $"$/#")'*% &//,*%&. A&&*$ )"$&%#+'*%, '+' 9 /%#)%$'" '% %+$ *& "$% '%#% ", % + $%% "# '#%% ),%#:& ?3 K ?.9 3@@.T*& ", &+% '% )"/+$ ;18 ??3 K 3@ ;4@ /%# %+# "# '*&&/#")%&& +,"$%. A*'*"$+, &+*$& ", % #%+,*


10/31

E(%#)*&% 12.12

C+&% N"$-V+,%-A% C"&' R""' C+&% C"&' R%)'*"$1 ;22 /%# $*'+ P#")%&& %&*$ A)'**' &%,%)'*"$2 ;29 /%# &%'/ P#")' %&*$ A)'**' #%)'*"$

3 ;8 /%# $*'

)

P,+$' ,+"' A)'**' %,**$+'*"$4 ;136 /%# %+# M,'*/,%J A)'**' %,**$+'*"$5 ;18 /%# $*'% S//,*%#& A)'**' &%,%)'*"$6 ;9 /%# %+# P#")' %&*$ A)'**' &+#*$

+?.75 K .25@;12 ?6 K 4@;8?15 K .5@;2)?8 K @;1;12 ?8@;2%?5.3 K 5@;6 A& *%$.

J0"# %(+/,% /#")%&& %&*$ /#")' %&*$ +$ =+,*' +//#"+) "#/*,"&"/.

E(%#)*&% 12.13

1. 0*(% +)'**' #+'% SP ;5428 ;18 /%# &%'/ "#

C"&' " $&% )+/+)*'>

SP SQ SP AQ SP AU ;18 2 ;18 28 ;18 262

;36 ;54 ;4716

;468 U ;324 0V",% V+#*+$)% U$&% C+/+)*' V+#*+$)%

T% +)'**' ",% +#*+$)% %+&#%& '% $"$-+,%-+% )"&'.

T% $&% )+/+)*' +#*+$)% *& + %+&#% " '% potential '" #%)% '%&/%$*$ "$ +$ +)'**' +$ '& #%)% '% $"$-+,%-+% )"&'&. I$ '*&)+&% &*$)% '% #%&"#)% *& +)=*#% "$% /%#&"$ +' + '*% '%#% *& $"'&*)*%$' $&% )+/+)*' '" #%)% '% $%# " %/,"%%& "$%. T%+"#+,% $&% )+/+)*' +#*+$)% "%& &*$+, '+' '% +)'**' %+$ *&%*$ #%)%. F%$%%# '% $&% +)'**' #%+)%& 2 "#& '%$#%&"#)% &/%$*$ )+$ % #%)%. ?T% "%)'*% *& '" #%)% '% $%# "

"#& &% '" 2 %,**$+'*$ +,, " '% $"$-+,%-+% )"&'.@




11/31

E(%#)*&% 12.13 ?C"$),%@

2. V+,%-+% )"&'& ;18 2 ;36N"$-+,%-+% )"&'& ;18 26 ;468

A +,%-+% )"&' #%/"#' ", % +& ",,"&>

V+,%-A% N"$-V+,%-A% A)'+, S%''*$ /.................................. ;36 ;468 ;54

H*,*'*$ $"$-+,%-+% )"&'& &"& +$+%#& %#% &+*$& +#%/"&&*,% +$ %/+&*


12/31

E(%#)*&% 12.14

1. S+$"# I$).V+,%- +$ N"$-V+,%-A% C"&' R%/"#'

0"# '% Y%+# E$% D%)%%# 31 215

V+,%-A%J N"$-V+,%-A%JJ A)'+, P#)+&*$ /+#'&................. ; 78 ; 312 ;192R%)%**$ /+#'&.................... 114 57 1521M"*$ /+#'&........................ 114 114S%''*$ / %=*/%$'.......... 12168 12168

T"'+,................................. ;1794 ;3498 ;48438

JSPJSQ JJ?AQ K SQ@SP

2. M"*$ /+#'& *& $"$-+,%-+% ?SQ *& + $%)%&&+# )"$*'*"$ "# + $"$-+,%-+% +)'**'@. M"*$ /+#'& "%& /#")% + )+$% *$ &'+'%

?)+$*$ ,")+'*"$ *& + &'+'% )+$% +& /+#'& &' % ,")+'% %#% '% +#%$%%%@. Y%' /#"/%# %&*$ " '% /,+$' ,+"' +$ *$&'+,,*$ '% #*'*$%$'"# +$+%%$' /#")%#%& *' *& /"&&*,% '" +:% +'%#*+, "%%$'*#'+,, *$&*$**)+$'. I$ "'%# "#& + )+$% *$ &'+'% *& +% $$%)%&&+#.S%''*$ / %=*/%$' &%%& $%)%&&+# +$ '%#%"#% +,%-+%. Y%' * '%'*% *& #%)% '"


13/31

E(%#)*&% 12.15 ?C"$),%@

2. 0"# $"$-+,%-+% +)'**'*%& +)'**' #%)'*"$ )+$ &%#% '" #%)% '%%+$ "# '%&% +)'**'*%& *' '% ,'*+'% "%)'*% " #%)*$ '%%+$ '"


14/31

E(%#)*&% 12.17

C,+&&**)+'*"$>

S*'+'*"$ A)'**'-B+&% 0*$+$)*+,-B+&%

1 A B2 A B3 A B4 B A5 B A6 B A7 A B

C"%$'&>

Situation 1: I$ + *$+$)*+,-+&% &&'% *$**+,& +#% %, #%&/"$&*,% "# '%

%*)*%$) " "#+$*


15/31

E(%#)*&% 12.17 ?C"$),%@

Situation 4: I$ + *$+$)*+,-+&% &&'% /%#"#+$)% " &$*'& *& &+,,*$+$)*+,-+&% +$ *& %+&#% )"/+#*$ +)'+, *' %'% "')"%&.I$ +$ +)'**'-+&% &&'% /#")%&& /%#"#+$)% *& %/+&*


16/31

4A+54E EE7SES

Exercse 12.18

. A&&%,*$ /#)+&*$ +$ %&*$*$ $% /#")%& +#% +,, $%)%&&+#

+)'**'*%& +$ '& +,% +%. R%"#: *& #%"*$ "#: '+' &", +%%%$ "$% )"##%)', '% *#&' '*% +$ *& '%#%"#% $"$+,%-+%.

Exercse 12.19

+. I$&/%)'*$ +$ #%"#: +#% "' $"$+,%-+% +)'**'*%& +$ '% '"'+, )"&' " '% '" +)'**'*%& *& ;126.

Exercse12.20

. A)'**' %,**$+'*"$ *& '% )"##%)' +$&%# +& #%"#: *& + $"$+,%-+%+)'**' +$ &", % %,**$+'%.

Exercse 12.21

+. T% "'%# +$&%#& +#% %+'#%& " +)'**'-+&% )"&'*$.

Exercse 12.22

). he tota% act"t' capact' s 20&000 mo"es ( × &000). hus& theunused capact' s 2&000 mo"es. Each mo"e has a prce of $2&000=20&000). hus& the cost of the unusedcapact' s $&200.

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17/31

PROBEMS

P#",% 12.23

1. A$ +)'**' #*%# %+&#%& '% +"$' " +$ +)'**' )"$&% + )"&'

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19/31

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20/31

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21/31

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22/31

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23/31

P#",% 12.26

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24/31

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25/31

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27/31

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28/31

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29/31

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30/31

P#",% 12.3 ?C"$),%@

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31/31

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