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Butoxors [25]
3 years ago
11

Stephans Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materi

als $ 1.00 Direct labor 10.00 Variable overhead 5.00 Fixed overhead 8.00 Total $24.00 Bill Company has contacted Stephans with an offer to sell them 5,000 of the subassemblies for $22.00 each. Stephans will eliminate $25,000 of fixed overhead if it accepts the proposal. Should Stephans make or buy the subassemblies? What is the difference between the two alternatives?
Business
1 answer:
Vaselesa [24]3 years ago
4 0

Answer:

Stephans shall make the product.

The difference is of $5,000 to be saved in case of making the product.

Explanation:

Provided details,

Cost per unit

Variable = Direct material $1 + Direct Labor $10 + Variable Overhead $5.00

= $16

Fixed overhead = $8

Including fixed cost the cost per unit of manufacturing = $16 + $8 = $24

In case of buying cost = $22 per unit.

Cost for 5,000 units in case of buying = $22 \times 5,000 = $110,000

Cost of making 5,000 units = $24 \times 5,000 = $120,000

Fixed cost for 5,000 units = $8 \times 5,000 = $40,000

$25,000 cost is avoidable.

Therefore non avoidable cost = $40,000 - $25,000 = $15,000

Therefore total cost of purchasing = $110,000 + $15,000 = $125,000

Since total cost of purchasing is more than cost of making, goods shall be manufactured and not produced.

Difference = $125,000 - $120,000 = $5,000 additional in case of purchasing.

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________ is a set of activities and techniques firms employ to efficiently and effectively manage the flow of merchandise from t
xz_007 [3.2K]

<u>Supply Chain Management</u><u>  is a set of activities and techniques firms employ to efficiently and effectively manage the</u><u> flow of merchandise</u><u> from the vendors to the retailer's customers.</u>

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Supply Chain Management What Is It?

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8 0
2 years ago
PLEASE! I need help :): will mark brainliest! Describe Sinek's Golden Circle. What does he use this for? Sinek argues that "peop
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Explanation:

Sinek's Golden Circle can be described as a methodology used to analyze marketing campaigns of the company itself and its competitors. It is widely used by advertisers and marketers. The methodology consists of drawing a graph in a target format that indicates from the center the questions: why, how and what.

Senek uses this graph to present a different way of communicating, what he means by that is that people are encouraged to buy not only the company's product, but its values, its causes, what you believe and why that your company exists.

I agree with him because the organizational image and its values ​​are important to the consumer as much as the product or service, because people want to consume value, positive experiences and emotions, therefore they will want to establish a relationship with companies that share the same your personal values.

In the organizational environment it is also important to hire professionals who share the same values ​​as the company, so that work becomes more motivating and productive, in addition to creating an aligned organizational culture that will help the company to be successful both internally and externally.

The Tivo company is an example of a company that tried to use the golden circle strategy but failed because it proposed a value proposal that made sense, because what it promised did not match the value it could offer, so it was a failed strategy.

Therefore, organizational values ​​must be shared by all employees in an organization, starting with the leader, different from those who lead, a true leader is one willing to set an example of how organizational values ​​should be fulfilled, it is necessary that he is willing to help employees, to be ethical and a motivational mirror for everyone in the company, not just a controlling and authoritarian manager who imposes fear and makes it difficult to create a productive and motivating organizational culture.

Security needs are also an important factor in organizations and represent the second level of the Maslow pyramid, in terms of the need that employees have to protect their values, their work, their emotional, job stability, insurance health insurance, life insurance, etc.

To make the work environment safe it is necessary to have employee protection policies, health benefits and life insurance, ease of doing work, physical security, etc.

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3 0
3 years ago
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Answer:

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