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IgorC [24]
2 years ago
9

Epsilon Co. can produce a unit of product for the following costs: Direct material $ 8.80 Direct labor 24.80 Overhead 44.00 Tota

l product costs per unit $ 77.60 An outside supplier offers to provide Epsilon with all the units it needs at $66.20 per unit. If Epsilon buys from the supplier, the company will still incur 35% of its overhead. Epsilon should choose to:
Business
1 answer:
sergeinik [125]2 years ago
4 0

Answer:

Make since the relevant cost to make it is $62.20.

Explanation:

There is an option below the question ask for details

The computation of the total product cost is shown below:

= Direct material per unit + Direct labor per unit + Overhead cost per unit

where,

Overhead cost per unit would be

= Overhead cost per unit × remaining percentage

= $44 × 65%

= $28.6

All the other items values would remain the same

Now put these values to the above formula  

So, the value would equal to

= $8.80 + $24.80 + $28.6

= $62.20

Since the given total product cost is more than the computed one so the company will choose make option and for decision making we take only 65% which is relevant

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Consider a bank that has the following balance sheet: Liabiiiies Reserves $200 Deposits $960 Loans $800 Equity $40 Suppose some
Andru [333]

Answer:

d) The value of equity is $0

Explanation:

Bank loans are classified as performing and nonperforming loans. Nonperforming loans that stay for over a long period (usually 12 months) are considered to be a loss.

When a bank makes a loss on loans (loan goes bad due to nonrepayment) they make provisions and debit the business equity for the loss.

The given loan amount is $800 and the bank had to provision 5% of that amount.

Loss from loan= 800* 0.05= $40

This is deducted from equity= 40- 40= $0

7 0
3 years ago
Green Company purchases a truck for $30,000 on the first day of the year. Green Company uses straight-line depreciation and esti
SpyIntel [72]

Answer:

$5,000

Explanation:

The depreciation by Green Company in respect of truck for the first year of operations shall be calculated using the following mentioned formula;

Depreciation for the year=  (Cost of asset-Residual value)/useful life

Cost of asset=$30,000

Residual value=$5,000

useful life=5

Depreciation for the year=($30,000-$5,000)/5=$5,000

6 0
3 years ago
A broker-dealer and its agent are registered in State A. The agent tells a customer in State A that he is prohibited from making
OlgaM077 [116]

Answer:

There is a violation of Uniform State Law because the agent has made an offer to sell an unregistered non-exempt security in that State

Explanation:

The Uniform State Securities Law is also called blue sky law, and they are put in place at the State level to prevent fraud and to enforce security regulation.

This law was set up to handle investments that do not occur at the federal level. These are out of the purview of the SEC so states handle them.

In the given scenario the agent is trying to make a non exempt security exempt by buying it from the client.

This is an attempt to sell the securities to investors through fraudulent means and it is a violation of Uniform State Law

8 0
2 years ago
Aarp expects agents offering aarp-branded products to demonstrate five key behaviors when interacting with customers. Aarp wants
Andre45 [30]

Answer: Effortless and inspiring

Explanation:

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2 years ago
$6000 is invested into 2 accounts at 8% and 7.5% and the total interest is $472.50 how much is invested at 8%?
djverab [1.8K]
0.08x+0.057 (6000-x)=472.5
Solve for x
X=4500 invested at 8%
4 0
3 years ago
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