Answer:
increase in income of $80
Explanation:
Prepare an Analysis of Costs and Savings if the Company buys from Outside Supplier.
Note : The fixed costs per unit at are unavoidable are irrelevant and disregarded in this decision.
<u>Analysis of Costs and Savings</u>
Purchase Price (400 widgets × $44.00) = ($17,600)
Savings :
Variable Costs ($35.60 × 400 widgets) = $14,240
Fixed Cost ( $8.60 × 400 widgets) = $3,440
Net Income effect = $80
Conclusion :
The effect on net income if the company instead buys the widgets is an increase in income of $80
Recovery is saving, that is, releasing immobile,
inoperative, or abandoned equipment from its current location and returning it
to operation or to a repairs site for maintenance. These actions typically
involve towing, lifting, or winching. The answer here is self-recovery. Actions
necessitate using only the equipment’s assets. Self-recovery starts at the place
where the equipment becomes caught up or disabled. The operator or crew uses
the accessible recovery objects to carry out self-recovery.
<span>In this scenario, Jacob is a "cultural and change steward." He not only has understanding of the company's culture, but also puts effort into changing and enhancing the company in line with its culture. His efforts are sincere because he respects the significance of the company's culture, indicating his stewardship in bringing about change in the company.</span>
The cost at which a company records purchases of machinery and equipment should include all the under listed:
- Operating costs
- Purchase price
- Installation.
- Shipping fees
- Taxes
<h3>What is acquisition cost?</h3>
Acquisition cost refers to all the cost associated with the purchase of an asset. When calculating how a company records purchases of machinery and equipment, it should be the all inclusive cost of the equipment.
The cost acquisition cost should include :
- Installation cost
- Site preparation
- Sales or other taxes and testing costs prior to placing the equipment into production.
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