Liquid Chemical Case Study

Pages: 3 (287 words) Published: April 19, 2013
Tynia Fantroy
Professor: Sarah Engle
Course Project: Cost Analysis for Decision Making The Liquid Chemical Company
ACCT 244
April 19, 2013

There are four alternatives Mr. Walsh that available to the Liquid Chemical Co. to pursue. The first alternative (Alternative A) is the status quo where Liquid Chemical will continue making the containers and performing maintenance.

|Relevant cost |Alternative A | |Purchase cost of GHL |$144,000 | |Other material cost |$500,000 | |Salary(supervisors) |$50,000 | |Labor (workers) |$450,000 | |Warehouse rent |$85,000 | |Maintenance of machinery |$36,000 | |Other expenses |$157,500 | |Salary (managers) |$80,000 | |Severance cost | | |Pension Expense | |

The second alternative (Alternative B) is for Liquid Chemical Co. to continue making the containers, but it will outsource...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Liquid Chemicals Case Analysis Essay
  • Liquid Chemical Case Essay
  • Case Study Essay
  • Liquid Chemical Company Case Study Essay
  • case study Essay
  • case study Essay
  • Victoria Chemicals Case Study Essay
  • Ovania Chemicals Case Study Essay

Become a StudyMode Member

Sign Up - It's Free