If a company reorganizes its operation to gain efficiency, the cost associated with this reorganization is classified as
1 answer:
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Answer:
Indifferent Purchase price per wheel = $123,200/110,000 = $1.12
Explanation:
Provided that:
Number of wheels produced: 110,000
Cost for these wheels in case of manufacturing
Direct Material = $22,000
Direct Labor = $33,000
Variable Manufacturing Overhead = $16,500
Fixed Manufacturing Overhead = $59,000
Total Cost = $130,500
Rate of outside supplier = $0.80
Then total cost in case of purchase = Purchase cost + Unavoidable fixed cost - Rent Revenue
= $0.80 110,000 + ($59,000 - $14,000) - $37,700
= $88,000 + $45,000 - $37,700
= $95,300
since net effect of buying the wheels is a gain of $130,500 - $95,300 = $35,200
Thus the wheels shall be bought and not manufactured.
The price at which the buying and manufacturing option will be indifferent shall be:
Purchase Price + Unavoidable Fixed Cost - Rent Revenue = Manufacturing cost
Purchase Price + $45,000 - $37,700 = $130,500
Purchase Price = $123,200
Purchase price per wheel = $123,200/110,000 = $1.12
Answer:
- A. The data in D3 is skewed right.
- B. Three quarters of the data values for D2 are greater than the median value for D1 .
- E. At least a quarter of the data values for D3 are less than the median value for D2 .
Explanation:
A Box Plot can be interpreted as follows;
The first point on the line is the minimum value.
The first end of the box is the First Quartile of the data range.
The next line is the Median.
The last end of the box is the Third Quartile.
The last point on the line is the maximum value.
Most of D3 lies on the right side of Median so it is skewed right.
The First Quartile of D2 is more than the Median of D1 which means that 3 quarters of D2 (first quartile to the maximum value) are greater than the median of D1.
D2's Median value is greater than the Third Quartile of D3 which means that more than just a quarter of D3 falls below D2's Median so option E is correct.
