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IgorC [24]
3 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]3 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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As the price of jeans rises, Levi Strauss is likely to A. decrease production and thus decrease the supply. B. increase producti
LUCKY_DIMON [66]

Answer:

B. Increase production and thus increase the supply.

Explanation:

As the price of Jeans rises, the Levi Strauss is likely to increase production keeping other factors constant as per the law of supply, where quantity is directly proportional to the price of goods and services. As the price of goods increase, the quantity supply of product also increased by supplier or manufacturer to maximize the profit out of the current market condition.

8 0
3 years ago
Sales $200,000 Net income 100,000 Depreciation 20,000 Interest 10,000 Taxes 5,000 What is the company’s operating profit margin?
WITCHER [35]

Answer:

57.5%

Explanation:

Data Provided:

Total Sales =  $ 200,000

The net income = $ 100,000

Depreciation = $ 20,000

Interest = $ 10,000

Taxes = $ 5,000

Now,

the operating profit is the from the income before the taxes and interest. Thus,

the interest and taxes will be included in the net income for the operating profit

therefore,

The operating profit = income + Interest + Taxes

or

The operating profit = $ 100,000 + $ 10,000 + $ 5,000 = $ 115,000

Now,

the operating profit margin = ( Operating profit / Sales ) × 100

or

= ( $ 115,000 / $200,000 ) × 100 = 57.5%

3 0
3 years ago
In​ Japan, it's called kuroi kiri​ (black mist); in​ Germany, it's schmiergeld​ (grease money), whereas Mexicans refer to la mor
givi [52]

Answer:

Providing buyers with​ "gifts" to secure business

Explanation:

When gifts are illegally given to obtain a favor it is called bribery.

Bribery is the giving, receiving, offering, or asking for any item of value in order to influence actiins of a party.

Bribery is a criminal act where both the giver and receiver of bribes are guilty. Also bribe doesn't have to be given or received before on is guilty, when an offer is made the personaking the offer is already guilty of bribery.

4 0
3 years ago
A roofing company would like to implement a new method for giving estimates. The owner has narrowed his choice to three differen
galben [10]

The estimators are the blocks in this study

Explanation:

An estimator is a law in statistics for estimating a calculation based on observed figures for a given amount, thereby differentiating the definition, the quantity of value and its consequence. There are estimators for point and time.

To order to measure the time, energy, equipment and function necessary to produce a commodity, constructing a building or provide a service, cost estimators must gather and analyse data. They typically work on a particular company or industry.

It can either be finite-dimensional (parametric and semi-parametric) or infinite-sized (semi-parametric / non-parametric).

3 0
3 years ago
ang Co. manufacturers its products in a continuous process involving two departments, Machining and Assembly. Journalize the ent
Ksenya-84 [330]

Answer:

a.

Raw Materials $180,000 (debit)

Accounts Payable $180,000 (credit)

b.

Work In Process Machining : Direct Materials $73,000 (debit)

Work In Process  Machining : Indirect Materials $9,000 (debit)

Work In Process  Assembly : Indirect Materials $4,900 (debit)

Raw Materials $86,900 (credit)

c.

Work In Process  Machining : Direct Labor $23,000 (debit)

Work In Process  Assembly : Direct Labor $47,000 (debit)

Salaries Payable $70,000 (credit)

d.

Work In Process  Machining : Depreciation $4,500 (debit)

Work In Process  Assembly : Depreciation  $7,800 (debit)

Accumulated Depreciation $12,300 (credit)

e.

Work In Process  Machining : Overheads $9,700 (debit)

Work In Process  Assembly : Overheads  $11,300 (debit)

Overheads $21,000 (credit)

f.

Work In Process Assembly Department $14,900 (debit)

Finished Goods Inventory $83,400 (debit)

Work In Process Machining Department $98,300 (credit)

g.

Accounts Receivables $100,000 (debit)

Cost of Goods Sold $68,000 (debit)

Sales Revenue $100,000 (credit)

Finished Goods Inventory $68,000 (credit)

Explanation:

Manufacturing Costs are accumulated in the Work In Process Account.

Finished Goods are Transferred from Work In Process Account to Finished Goods Inventory by Debiting Finished Goods Inventory Account and Crediting Work In Process Account.

4 0
3 years ago
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