Prof. Anh just opened an aquarium shop in San Antonio selling different types of goldfish. Due...
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Prof. Anh just opened an aquarium shop in San Antonio selling different types of goldfish. Due to the nature goldfish, Prof. Anh must change the dirty tank water (which is contaminated by fish poops and left-over fish foods) with new fresh water almost every day. Normally, he would just dump the dirty tank water away somewhere in the back of his aquarium shop. However, yesterday, a farmer visited Prof. Anh's aquarium shop and saw him dumping the dirty water away. The farmer told Prof. Anh that the dirty tanks water is a miraculous natural source of nutrition for crops that no other types of fertilizer available on the market can mimic. For that reason, he offers to buy that dirty water. Below is an overly simplified income statement of the aquarium: Revenue from fish sale $15,000/month Total DL Total DM Overhead $1,000/month (to hire 1 shopkeeper) $3,000 /month (fishes, foods, chemicals for the tanks, etc.). $5,000 /month (utilities, maintenance, rent, etc.) How much is that dirty tank water cost to Prof. Anh? How much is the minimum that Prof. Anh should charge the farmer for the dirty fish tank water? Explain in detail. b) A week later, a representative from NASA visit Prof. Anh aquarium shop. The guy from NASA told Prof. Anh that NASA is working on a new space mission to grow trees on Mars. After years of testing, scientists found out that the goldfish dirty tank water is the only thing that would be able to fertilize trees on Mars and keep them alive. NASA now want to buy Prof. Anh dirty tank water. As a government agency, they have lots of money to spend, so NASA offer to pay Prof. Anh $100/gallon of dirty tank water, and their demand for that magical water is unlimited. If Prof. Anh accept the deal with NASA, how much is the minimum that Prof. Anh should charge the farmer if he still wants to buy the dirty water? Explain in detail. c) Since he is an expert in Cost Analysis, Prof. Anh immediately do a bunch of analyses and find out the following: Total gallons of dirty tank water "produced" daily = 1,000 gallons >Total gallons dirty tank water "produced" monthly = 30days 1000-30,000 gallons > Expected revenue from selling to NASA 30,000 x $100-$3,000,0000/month Without the NASA deal, identify all the products and the types of products (Primary, By-products, Scrape, Waste) that are generated from the aquarium business. If Prof. Anh accept the deal with NASA, identify all the products and the types of products (Primary, By-products, Scrape, Waste) that are generated from the aquarium business. How does the classification of product types change BEFORE the NASA deal and AFTER the NASA deal? Prof. Anh just opened an aquarium shop in San Antonio selling different types of goldfish. Due to the nature goldfish, Prof. Anh must change the dirty tank water (which is contaminated by fish poops and left-over fish foods) with new fresh water almost every day. Normally, he would just dump the dirty tank water away somewhere in the back of his aquarium shop. However, yesterday, a farmer visited Prof. Anh's aquarium shop and saw him dumping the dirty water away. The farmer told Prof. Anh that the dirty tanks water is a miraculous natural source of nutrition for crops that no other types of fertilizer available on the market can mimic. For that reason, he offers to buy that dirty water. Below is an overly simplified income statement of the aquarium: Revenue from fish sale $15,000/month Total DL Total DM Overhead $1,000/month (to hire 1 shopkeeper) $3,000 /month (fishes, foods, chemicals for the tanks, etc.). $5,000 /month (utilities, maintenance, rent, etc.) How much is that dirty tank water cost to Prof. Anh? How much is the minimum that Prof. Anh should charge the farmer for the dirty fish tank water? Explain in detail. b) A week later, a representative from NASA visit Prof. Anh aquarium shop. The guy from NASA told Prof. Anh that NASA is working on a new space mission to grow trees on Mars. After years of testing, scientists found out that the goldfish dirty tank water is the only thing that would be able to fertilize trees on Mars and keep them alive. NASA now want to buy Prof. Anh dirty tank water. As a government agency, they have lots of money to spend, so NASA offer to pay Prof. Anh $100/gallon of dirty tank water, and their demand for that magical water is unlimited. If Prof. Anh accept the deal with NASA, how much is the minimum that Prof. Anh should charge the farmer if he still wants to buy the dirty water? Explain in detail. c) Since he is an expert in Cost Analysis, Prof. Anh immediately do a bunch of analyses and find out the following: Total gallons of dirty tank water "produced" daily = 1,000 gallons >Total gallons dirty tank water "produced" monthly = 30days 1000-30,000 gallons > Expected revenue from selling to NASA 30,000 x $100-$3,000,0000/month Without the NASA deal, identify all the products and the types of products (Primary, By-products, Scrape, Waste) that are generated from the aquarium business. If Prof. Anh accept the deal with NASA, identify all the products and the types of products (Primary, By-products, Scrape, Waste) that are generated from the aquarium business. How does the classification of product types change BEFORE the NASA deal and AFTER the NASA deal?
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Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
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