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
melisa1 [442]
3 years ago
7

A business is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $14.00 pe

r unit. The unit cost for the business to make the part is $22.00, including fixed costs, and $10.00, not including fixed costs. If 33,168 units of the part are normally purchased during the year but could be manufactured using unused capacity, determine the amount of differential cost increase or decrease from making the part rather than purchasing it.
A. $265,344 cost increase
B. $132,672 cost increase
C. $132,672 cost decrease
D. $464,352 cost decrease
Business
1 answer:
yanalaym [24]3 years ago
4 0

Answer

Option C

Decrease in cost   $132,672

Explanation:

T<em>o determine the increase or decrease in  costs associated with making, we will compare the relevant costs of the two options as follows</em>

<em>                                                                          $</em>

Variable cost of making                                10

Variable cost buying                                      <u>14</u>

Savings in  cost per from making                 4

Total cost savings (decrease)    4 × 33,168 = $132,672

Decrease in cost as result of making =$132,672

You might be interested in
When U.S. goods become more expensive relative to foreign goods, exports will __________ and imports will __________.
ipn [44]

Answer:

fall, rise

Explanation:

US goods will become less expensive

3 0
3 years ago
Shocker Corporation's sales budget shows quarterly sales for the next year as follows: Unit sales Quarter 1 15,400 units Quarter
adelina 88 [10]

Answer:

Production for Q2 12,700 units

Explanation:

Q2

sales for the quarter 11,000 units

desired ending inventory

20% of Q3

20% of 19,500 =      3,900 units

Total requirement   14,900 units

Beginning inventory

20% of Q2 sales

20% of 11,000 =      (2,200) units

Production for Q2   12,700 units

We add the sales and the desired inventory as the production needs.

The beginning inventory is subtracted, those units is work done towards the goal, so we need to produce the differente, which is 12,700 units.

8 0
3 years ago
To maximize utility, a consumer should allocate money income so that the Multiple ChoiceA) elasticity of demand on all products
ikadub [295]

Answer:

D) Marginal utility of the last unit of each product consumed is the same.

Explanation:

To maximize utility with a given income constraint, a consumer must chose products to maximize utility. This can be done so that each extra dollar, which is the marginal income, spent on each of these products yields the equal marginal utility. For example if one product yields more marginal utility per marginal dollar spent, the consumer should reallocate their income so they consume more of this product and less of others, so much so that the utility derived from this product equals utility derived from other products.

Utility is maximized when these marginal utilities per marginal dollar spent coincide.

Hope that helps.

6 0
3 years ago
Say that Alland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Georgeland can
Ierofanga [76]

The true statement out of all is

B) Georgeland has both an absolute and a comparative advantage in producing clothing.

Explanation:

This is because Absolute advantage is when one firm or a producer is able to produce more of a product using less resources or less time or more of the product in the same resources or same time as the other.

Comparative advantage is found out at the added bonus of having the product be as viable as it is advantageous which means that the producer could also be making another product and would have the advantage in that too so either one of them is equally profitable.

5 0
3 years ago
​the key to being a good follower is to think for oneself and to work well without close supervision. this is referred to as ___
swat32
The answer is, "this is referred to as self-management".


There are four essential Qualities of Effective Followers, which includes;
Self-management
Commitment
Competence and focus
Courage
Self management is considered as the key to being a good follower. <span>Effective group members can see themselves as they are as capable as their leaders.</span>
4 0
3 years ago
Other questions:
  • Pablo is saving for a big-screen television. Which of the following actions could be the most harmful to Pablo's savings goal? S
    13·1 answer
  • Classify each item as an asset, liability, common stock, revenue, or expense.
    12·1 answer
  • A company manufactures three​ products, A,​ B, and C from a single raw material input. Product C can be sold at the split off po
    8·1 answer
  • The consumer wi-fi-service providers’ market is best described as a
    13·1 answer
  • If the fair value of a debt investment that is classified as an available-for-sale investment declines for a reason that is view
    6·1 answer
  • Tanner Service Company reported an annual sales revenue of $560,000 in 2019. During the year, accounts receivable decreased from
    12·1 answer
  • Which of the following statements is true of financial leverage
    7·1 answer
  • Morgana Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated
    9·1 answer
  • Question 15 of 20
    12·1 answer
  • List the five elements of a firm's macroenvironment, and illustrate how each element affects the firm.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!