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ycow [4]
3 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]3 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]3 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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3 0
1 year ago
Abby and jason are building a new house. they obtained a construction loan of $100,000, which will be rolled over into a convent
ivann1987 [24]

Answer:

the initial principal balance is $100,000, but it will gain 2% simple monthly interest during 16 months = $100,000 + ($100,000 x 2% x 16) = $132,000

the mortgage loan's principal = $132,000

APR = 12%

n = 30 years or 360 monthly payments

1) using a loan calculator we can determine that the monthly mortgage payment (only  principal + interest) = $1,357.77

2) since they will make 360 monthly payments, they will pay in total = $1,357.77 x 360 = $488,796.71

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3 0
3 years ago
Crane Company purchased a new machine on October 1, 2017, at a cost of $89,920. The company estimated that the machine has a sal
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Answer:

2017 depreciation expense= 10,060*3/12=$2,515

2018 depreciation expense=$10,060

Explanation:

The depreciation expense of machine for the whole year shall be calculated as follows:

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Since the machine is only used for 3 months in the year ended December 31, 2017, therefore the depreciation expense in 2017 will be calculated as follows

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Answer:

This is just a guess but personal.

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If she is wanting someone to help with Her taxes and help Her retire than that seems like personal use to me. Sorry if incorrect.

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2 years ago
Assuming zero transactions costs, if your local grocer buys oranges at a low price from an orchard and resells them to you at a
vitfil [10]

Answer:

The arbitrage profits to the grocer.

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The profit earns through this purchase and sale of oranges will be considered arbitrage profit.

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3 years ago
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