Help please It says I got 34 correct if each is worth 5 pts

Help please! It says I got 3/4 correct (if each is worth .5 pts)

My answers were: B, A, B, B, A, A, A, A

Safer Corporation is considering eliminating one of its business segments (tennis balls). The segment incurs significant fixed costs If the segment is eliminated, the building used to make tennis balls will quickly be sold as the market for facilities is currently very strong. If the segment is eliminated, Safer will no longer manufacture or sell tennis balls. For each of the following, identify whether that cost is relevant to the decision about whether to eliminate the tennis ball making division. Advertising of tennis balls Supervisor of the tennis ball factory Allocation of the salary of the Chief Financial Officer (CFO) Original cost of the tennis ball factory Market value of the tennis ball factory Cost to maintain the equipment used to manufacture tennis balls Real estate taxes on the tennis ball factory building Allocation of company-wide facility level costs A Relevant B. Irrelevant

Solution

ANSWER:

Cost Detail

Relevant/Irrelevant

Reason

Advertising of tennis balls

A. Relevant

Advertising cost can be avoided if tennis business discontinues. Hence, relevant

Supervisor of the tennis ball factory

A. Relevant

If tennis business discontinues, the factory building is sold, hence there would no need of supervisor

Allocation of the salary of the chief financial officer(CFO)

B. Irrelevant

Allocation is general cost apportionment whether business continues or not, this will occur

Original cost of the tennis ball factory

B. Irrelevant

Original cost is sunk cost and hence irrelevant

Market value of the tennis ball factory

A. Relevant

Market value is relevant as it would be considered for selling factory

Cost to maintain the equipment used to manufacture tennis balls

A. Relevant

If business discontinues, corporation has to incur this cost

Real estate taxes on the tennis ball factory building

A. Relevant

Real estate taxes would incur only if factory not sold

Allocation of company-wide facility level costs

B. Irrelevant

Companywide facility level cost would incur whether or not tennis business discontinues

Cost Detail	Relevant/Irrelevant	Reason
Advertising of tennis balls	A. Relevant	Advertising cost can be avoided if tennis business discontinues. Hence, relevant
Supervisor of the tennis ball factory	A. Relevant	If tennis business discontinues, the factory building is sold, hence there would no need of supervisor
Allocation of the salary of the chief financial officer(CFO)	B. Irrelevant	Allocation is general cost apportionment whether business continues or not, this will occur
Original cost of the tennis ball factory	B. Irrelevant	Original cost is sunk cost and hence irrelevant
Market value of the tennis ball factory	A. Relevant	Market value is relevant as it would be considered for selling factory
Cost to maintain the equipment used to manufacture tennis balls	A. Relevant	If business discontinues, corporation has to incur this cost
Real estate taxes on the tennis ball factory building	A. Relevant	Real estate taxes would incur only if factory not sold
Allocation of company-wide facility level costs	B. Irrelevant	Companywide facility level cost would incur whether or not tennis business discontinues