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ycow [4]
2 years ago
7

MSI is considering outsourcing the production of the handheld control module used with some of its products. The company has rec

eived a bid from Monte Legend Co. (MLC) to produce 14,000 units of the module per year for $18.00 each. The following information pertains to MSI's production of the control modules Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit . $22 MSI has determined that it could eliminate all variable costs if the control modules were produced externally, but none of the fxed overhead is avoidable. At this time, MSI has no specific use in mind for the space that is currently dedicated to the control module production. Required 1. Compute the difference in cost between making and buying the control module fference in Cost
Business
2 answers:
Alik [6]2 years ago
8 0

Answer:

1)

cost of making (14000*22) = 308000

cost of buying (14000*(18+6)) = 336000

Difference cost = 28000

2)

No, Since, there is not other use of fixed cost, therefore, fixed cost will be a part of cost of buying.

3-a)

cost of making (14000*22) = 308000

cost of buying (14000*18) = 252000

3-b)

Yes, Since, there is other use of fixed cost, therefore, fixed cost will not be a part of cost of buying.

borishaifa [10]2 years ago
4 0

Answer:

The answer is 28000

Explanation:

1)as far as the fixed cost is unavoidable If units are purchased from outside Therefore it is irrelevant in decision making

Variable cost of manufacturing (since avoidable ,savings) =8+6+2= 16

Purchase cost :18

Difference in cost :14000[18-16 ]

             = 28000

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Answer: Valuation

Explanation:

The assertion that assertion relates to the statement that Assets, liabilities, and equity interests are included in the financial statements at appropriate amounts is the valuation assertion.

According to the assertion of accuracy and valuation, it simply means that all the figures that are presented in a financial statement are known to be accurate and are based on proper valuation of the assets, the liabilities and the equity balances

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2 years ago
Suppose the European Parliament is considering legislation that will decrease tariffs on agricultural products imported from the
VMariaS [17]

Answer:

€2,500 million

Explanation:

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4 0
3 years ago
When conducting "focused" inspections, OSHA compliance officers look at four
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Explanation:

I hope this helped you :D

6 0
2 years ago
When planning a procurement, it is useful to ______________.
Gre4nikov [31]

Answer & Explanation: When planning a procurement, it is useful to at least conduct a make or buy analysis which aids in determining the most cost effective approach, to consult and liaise with in-house experts in the departments of procurement, human resource, and legal, and also to insure the sponsor of the project signs off on the procurement plan. The goal of procurement planning is to increase the transparency and predictability of the procurement process while also deciding on what to buy, when and from what source.

5 0
3 years ago
As Vince described his firm's landscape maintenance program to the buyer for Allentown Medical Center, Alex (the buyer) interrup
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Answer:

Direct denial

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8 0
3 years ago
Read 2 more answers
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