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White raven [17]
3 years ago
9

ordan Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly c

ost of producing 9,200 containers follows. Unit-level materials $ 5,800 Unit-level labor 6,400 Unit-level overhead 3,900 Product-level costs* 9,600 Allocated facility-level costs 26,600 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Jordan for $2.80 each. Required Calculate the total relevant cost. Should Jordan continue to make the containers
Business
1 answer:
sasho [114]3 years ago
8 0

Answer:

1. $19,300

2. Yes

Explanation:

1. The computation of relevant cost is shown below:-

= Unit-level materials + Unit-level labor + Unit-level overhead + Product level cost

= $5,800 + $6,400 + $3,900 + $3,200

= $19,300

Working note:-

Product level cost = $9,600 ÷ 3

= $3,200

2. Yes, Therefore Production is lower than buying cost, hence it is better to continue production.

Purchase price =  9,200 × $2.80

= $25,760

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Answer:

Goodwill impairment occurs when a company decides to pay more than book value for the acquisition of an asset.

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Explanation:

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3 years ago
You run a hospital with 100 rooms. Fixed daily cost is $880.00 which includes staff salary, property charges, maintenance etc. V
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Answer:

$924

Explanation:

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Now put these values to the above formula

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3 years ago
A consumer downloads 4 movies and 3 apps per week. Suppose the price is $4 per movie and $4 per app, and the marginal utility th
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Marginal utility will be calculated for movies by: 14/(4*4) which would mean 0.875 utils per dollar per movie. Whereas, for apps, it would be: 8/(3*4) which would mean utils per dollar per app to be 0.667. Hence, movies tend to carry higher utility.

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3 years ago
If a payment cap is applied and the required payment does not cover the interest expense, the unpaid interest is added to the lo
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The condition when a payment cap is applied and the required payment does not cover the interest expense, the unpaid interest is added to the loan thereby increasing the loan balance even though the required payment is being made, is known as a negative amortization.

<h3>What is negative amortization?</h3>

A condition where the amount owed by an individual keeps adding even after the repayments are done is known as negative amortization.

Such condition of a negative amortization arises as the amount being repaid does not fully or partly cover the interest amount.

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