Flagler corporation takes eight hours to complete the setup process for a certain electrical component, with the setup cost averaging $150 per hour. if the company's competitor can accomplish the same process in six hours, flagler’s non-value-added cost would be: a. $0.b. $150.c. $300.d. $900.e. $1,200.

Option (c) $300

Explanation:

Data provided in the question:

Time taken to complete the setup process for a certain electrical component

= 8 hours

Average setup cost = $150 per hour

Time taken to complete the process by competitor company = 6 hours

Now,

Flagler’s non-value-added cost

= (Difference in time taken by the companies) × Average setup cost

or

Flagler’s non-value-added cost = ( 8 - 6 ) × 150

or

Flagler’s non-value-added cost = 2 × 150

or

Flagler’s non-value-added cost  = $300

Hence,

Option (c) $300

$44,592

Explanation:

The book value of a building = Cost Price - Accumulated Depreciation

= $(251,060 - 109,510)

= $141,550

The present value of the non-interest-bearing note due on January 1, 2023 (or Discounted Cash Flow) =

FV/(1+i)^t

= $241,060/(1+0.09)^3

= $241,060/1.29503

= $186,142

Gain on Sale of the building = $(186,142 - 141,550) = $44,592