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Valentin [98]
3 years ago
12

Sunland’s Shop can make 1000 units of a necessary component with the following costs: Direct Materials $21000 Direct Labor 6000

Variable Overhead 3000 Fixed Overhead ? The company can purchase the 1000 units externally for $39000. The unavoidable fixed costs are $2000 if the units are purchased externally. An analysis shows that at this external price, the company is indifferent between making or buying the part. What are the fixed overhead costs of making the component?
Business
1 answer:
algol133 years ago
7 0

Answer:

$9,000

Explanation:

Total variable cost of manufacturing the components are as follows;

Direct materials $21,000

Direct labor 6,000

Variable overhead 3,000

————

Total $30,000

If we purchase the cost is $39,000 and the company is indifferent if they will manufacture or purchase. Therefore;

$39,000 - 30,000 = $9,000 (unavoidable fixed cost)

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NemiM [27]

Answer:

The correct answer is option d.

Explanation:

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Though the assumption of other things being constant does not apply in the real world, it is still used as otherwise change in other factors would complicate the model. If several factors change it would be difficult to understand the relationship between variables.  

Here, to study the effect of change in the price of grapes on the market for wine, it is necessary to assume other factors such as income, consumer preferences, etc to be constant.

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3 years ago
The terms of a partnership agreement provide that one of the partners is to receive a salary allowance of $30,000, plus a bonus
Pavel [41]

Answer:

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Explanation:

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Which of the following is an owner of a fee simple absolute NOT able to do...? Lease the property to another Pledge the property
xxTIMURxx [149]

Answer:

Correct Answer:

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7 0
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kotegsom [21]

Answer:

Alternative of cleaning and shipping is better as loss value is less.

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GalinKa [24]
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