1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kap26 [50]
3 years ago
13

Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 68,00

0 units of RX5 follows. Direct materials $ 5.00 Direct labor 9.00 Overhead 10.00 Total costs per unit $ 24.00 Direct materials and direct labor are 100% variable. Overhead is 70% fixed. An outside supplier has offered to supply the 68,000 units of RX5 for $20.00 per unit. Required: 1. Determine the total incremental cost of making 68,000 units of RX5. 2. Determine the total incremental cost of buying 68,000 units of RX5. 3. Should the company make or buy RX5
Business
1 answer:
Genrish500 [490]3 years ago
5 0

Answer:

1.Total cost of making = $1,632,000.

2) Incremental cost of buying $<em>204,000 </em>

3.)The company should make the product as it will save $204,000 by doing so

Explanation:

1) Total cost of making = unit cost× units required cost

Total cost of making =  24.00 × 68,000= 1,632,000.0

2) Total incremental cost of buying

<em>Relevant cost of making</em>

Unit variable cost= (5.00 + 9.00+ (30%× 10)=17

Total variable cost of making = 17  ×68,000 =               1,156,000

<em>Relevant cost of buying        </em>68,000× 20   =                <u> 1,360,000 </u>

Incremental cost of buying                                             <u><em>204,000 </em></u>

<u><em></em></u>

3) Haver should make the product as it will save $204,000 by doing so

       

You might be interested in
Differential costs ______. Multiple choice question. are always variable costs include all costs related to a decision can be fi
natka813 [3]

Answer:

Can be fixed or variable

Explanation:

8 0
2 years ago
McLeod, Inc. incurred fixed costs of $300,000 and variable costs of $200,000 for total costs of $500,000 when 59,000 units are p
Ad libitum [116K]

Answer:

$3.389

Explanation:

Data provided as per the question below

Fixed cost = $300,000

Variable cost = $200,000

Total cost = $500,000

Units produced = 59,000

The computation of variable cost per unit is shown below:-

Variable cost per unit = Variable cost ÷ Units produced

= $200,000 ÷ 59,000

= $3.389

Therefore we applied the above formula.

3 0
3 years ago
An example of a free rider is a. someone who benefits from clean air without paying for it. b. someone who adds value to a netwo
Anna71 [15]

is a person who benefits from something without expending effort or paying for it.

3 0
3 years ago
Stelwire LLC, a vintage car dealer, advertises the sale of a 1964 Ford Thunderbolt. Ralph
DENIUS [597]

Answer:

A) firm offer rule

Explanation:

The firm offer rule states that an offer shall remain open and firm until its expiration date (in this case a fortnight). Stelwire LLC can revoke an offer (anyone can) but in order to do so, it must notify the other party about the revocation. If Stelwire LLC didn't properly revoke the offer before Ralph accepted it, then they are liable for it.

3 0
3 years ago
What general conclusions can be drawn about Eli’s situation? Check all that apply.
Alex777 [14]

Answer:

He may still be covered in some cases.

He faces more risk than insured people do.

He may have to take precautions but many factors are beyond his control.

Not being able to afford insurance was a factor in him not being covered.

Explanation:

I got it correct

7 0
3 years ago
Read 2 more answers
Other questions:
  • A new barcode reading device has an installed cost basis of ​$20 comma 060 and an estimated service life of seven years. It will
    5·1 answer
  • Suppose that on Valentine's Day, the demand for both roses and greeting cards increases by the same percentage amount. However,
    12·1 answer
  • Brothern Corporation bases its predetermined overhead rate on the estimated machine- hours for the upcoming year. Data for the m
    10·1 answer
  • Write a brief story about a young person shopping at a local mall that incorporates all benefits of marketing ?
    7·1 answer
  • Once you’ve graduated college how should you update your resume
    11·2 answers
  • Bentley manages a building supply company. He wants to invite 20 of his most valuable building-contractor customers to a golf ou
    12·1 answer
  • The cost of preferred stock is different from the cost of _____ because there is no maturity date on which principal must be pai
    15·1 answer
  • Gregory visited a prospect for the first time this morning, chatted a while with
    10·2 answers
  • A financial statement is a summary of all the financial transactions that have occurred over a particular period. Also financial
    6·1 answer
  • Bonnie is writing a growth plan for her bicycle repair shop. She wants to pay off the loan for the building she uses for her bus
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!