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Valentin [98]
2 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:
algol132 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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Champion Bakers uses specialized ovens to bake its bread. One oven costs $689,000 and lasts about 4 years before it needs to be
Strike441 [17]

Answer:

A. ​-$272,638

Explanation:

Firstly, we need to calculate the total present value of initial investment plus all operating cost of the project. Then we will use that amount to solve for equal-amount annual operating cost.

Total present value of the project is -689,000 - 41,000/(1+13%) - 41,000/(1+13%)^2 + ... + 41,000/(1+13%)^4, or -810,953.32 (negative sign mean cost).

So, the equivalent annual cost of an oven is -272,638.

The equation solving problem can be made easily using Excel or BA II plus calculator.

5 0
2 years ago
The major disadvantages of forming a business under a _____ structure is that there is double taxation of profits, and the cost
photoshop1234 [79]

Answer:

The correct answer is Corporations.

Explanation:

Corporate structure refers to how a business is organized to meet its objectives. The corporate structure of a business is important because it determines the ownership, control and authority of that corporation. These characteristics in a corporation are represented by 3 actors: Shareholders, Board of Directors and Directors. The ownership (the owners) are the shareholders. The control is executed by the board of directors on behalf of the shareholders, while the authority over the day-to-day operations is carried out by the Directors.

8 0
3 years ago
The Government Accounting Office (GAO) announces deep cuts to social security, Medicare, and welfare programs. Which determinant
Serjik [45]

Answer:

Consumer spending

Explanation:

  • Consumer spending is the amount that individuals and families spend on final goods and services for personal use and enjoyment in the economy. Contemporary measures of consumer spending include all private purchases of durable goods, durable goods and services.
  • Consumer spending can be thought of as a combination of personal savings, investment cost, and output in the economy.
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3 0
2 years ago
A type of partnership called a ___________ acts much like a corporation and is traded on stock exchanges, but it is taxed like a
gizmo_the_mogwai [7]

Answer:

The correct answer is letter "D": master limited partnership.

Explanation:

A Master Limited Partnership or MLP is a publicly-traded partnership in which the limited partnership interest is traded in much the same way as the corporate shares. In an MLP there are two groups of partners: <em>the general partner</em> -holding a small percentage- and the <em>limited partners</em> -controlling most of the partnership. The limited partners pay MLP revenue taxes on their personal income tax returns.

4 0
3 years ago
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zheka24 [161]

Answer: Parole evidence rule

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