Cost of Making the product is as below, We shall exclude the amount of $3 per unit of fixed cost as it is not a relevant cost
Cost of Manufacturing Cost of Buying Difference
Direct Materials $5
Direct Labour $15
Variable Overheads $10
Fixed Overheads $2
Total Manufacturing Cost $32
Total Purchase Cost $37
Total Cost (12000 Units) 384000 444000 60000
Rent Income (40000) (40000)
Total Difference 20000
Thus as can be observed above the company incurs an extra cost of $20000 if it purchases the component from a third party. Thus its advisable if the company produces the component in its own premises.
Answer:
8.31 years
Explanation:
For this question, we have to calculate the number of years by applying the NPER formula which is attached in the attachment below:
Given that,
Present value = $800
Future value = $1,200
Rate of interest = 5%
PMT = $0
The formula is shown below:
= NPER(Rate,PMT,PV,-FV,type)
The present value come in negative
So, after solving this, the answer is 8.31 years
Answer:
commodity foods program
Explanation:
the commodity food program is a way of improving on the diets of low income earners by providing them with nutritious USDA food.
The low income earners in this category includes pregnant women, children, the elderly and infants. This program health to improve their diets as well as their overall health
Answer:
Labor productivity per dollar is 0.0091 rugs/dollar
Explanation:
The computation of labor productivity is shown below:
= Total number of rugs ÷ total labor cost
where,
Total number of rugs is 65
And, the total labor cost = Labor hours × rate per hour
= 550 hours × $13
= $7,150
Now put these values to the above formula
So, the value would equal to
= 65 rugs ÷ $7,150
= 0.0091 rugs/dollar