Answer:
Redbud Company
A) Relevant costs:
B) Direct labor
C) Direct material
D) Variable overhead
F) New manager's salary
B) B) Redbud is indifferent about the decision.
C. Other factors to consider:
B) The potential for improved control over the availability of the parts by having it when needed and the potential for improved quality of the parts.
C) Since Redbud Company is considering the use of currently available capacity, it should evaluate any relevant opportunity costs of using this capacity for more profitable activities.
Explanation:
a) Data and Calculations:
Cost of buying parts from outside supplier = $50 per part
Units required in the next year = 10,000
Costs required to produce internally:
Supervisor's salaries $40,000
Direct material $ 28
Direct labor 12
Variable overhead 6
Fixed overhead (includes
manager at $4 per unit) 10
Total unit cost $ 56
Relevant costs:
Direct material $ 28
Direct labor 12
Variable overhead 6
Fixed overhead (includes
manager at $4 per unit) 4
Total unit cost $50
Answer:
C. Customers in Nashton were more likely than customers in Oakville to view XYZ as a luxury good.
Explanation:
If Nashton customers viewed the product as luxury good, their demand was more elastic. So by charging higher price in the more elastic segment, company had a decrease in total revenue.
Answer:
$77,000
Explanation:
On October 1, 2013
cost of the asset = $80,000
Salvage value = $20,000
Useful life = 5 years
Annual depreciation = (80000 - 20000)/5
= $12,000
Accumulated Depreciation between October 1, 2013 and December 31, 2013 using the straight-line method of depreciation
= $12000 × 3/12
= $3,000
Book value of the asset on December 31, 2013
= $80000 - $3000
= $77,000
Answer:
im saying B just so I can get the points for answering
