1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dedylja [7]
3 years ago
8

Company A manufactures a moderately priced set of lawn games that sells for $125. The company currently manufactures and sells 2

,000 sets per year. The manufacturing costs include $40 for direct materials and $15 for direct labor per set. The overhead charge per set is $12, which consists entirely of fixed costs. Company A is considering a special purchase offer from a large retail firm, which has offered to by 500 sets for two years at a price of $110 per set. Company A has the available plant capacity to produce the order and expects no other orders or profitable alternative uses of the plant capacity. What is the total relevant cost per unit to produce the units requested by the retail firm
Business
1 answer:
AfilCa [17]3 years ago
5 0

Answer:

$27,500

Explanation:

As mention in the question the company selling the 2000 seats

also the manufacturing cost is =$40

Direct labor cost =$15

As the seat company  A =500 seats

So the Direct Material Cost= seat company  A allotment *manufacturing cost

=500*40

=$20,000

Also the Direct labor cost =seat company  A allotment *direct labor cost

=$500*$15

=$7500

Therefore the total relevant cost of the firm is

=Direct Material cost +Direct labor cost

=$20,000+$7500

=$27,500

You might be interested in
Revved Rider Inc., a motorcycle company, is the market leader due to its superior engine technology and service orientation. The
Eddi Din [679]

<u>Answer:</u> Option B

<u>Explanation:</u>

Revved Rider company is the market leader as the company possess a superior engine technology that is not owned by other companies. This proves that the company has competitive advantage of technology over the competitors in the market.

Competitive advantage means having an advantageous quality which the other companies do not have in the market. When a company has competitive advantage it can become a price leader or market leader. It also becomes the consumer's most preferred company when compared to other companies.

5 0
3 years ago
The Besnier Company had $250 million of sales last year, and it had $75 million of fixed assets that were being operated at 80%
Elina [12.6K]

Answer:

$312.5 million

Explanation:

Given that,

Besnier Company's sales last year = $250 million

Fixed assets last year = $75 million

Previous operating capacity of fixed assets = 80%

Sales at full capacity:

= Previous sales ÷ Previous Capacity

= $250 million ÷ 80%

= $312.5 million

Therefore, if the company had operated at full capacity then the sales could have been $312.5 million.

7 0
3 years ago
scenario below is safe or unsafe: You choose to store materials by stacking them in tiers, but do not secure them by stacking, r
V125BC [204]
Unsafe because you dont interlock them or sercure them therefore it could fall over hurt you or someone else standing by

3 0
3 years ago
Find the annual percent increase or decrease that y = 0.35(2.3)x models.
marishachu [46]

its B 130%.


(Says I need to write at least 20 characters, sooo hows your day going?)

                                                                                                                                                                       

5 0
3 years ago
The first entry to liquidate a partnership would probably include
Lorico [155]
Property will not added when it liquidate
8 0
3 years ago
Read 2 more answers
Other questions:
  • To​ economists, the social cost of unions depends primarily on
    14·1 answer
  • Where is poseidon when the gods at council decide to help odysseus to return home?
    6·1 answer
  • Jervis sells $3,900 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 3% fa
    7·1 answer
  • Anne Mullens is the bookkeeper for DWG Refrigeration Repair. One afternoon while she was preparing the bank deposit, a customer
    6·1 answer
  • The actual variable cost of goods sold for a product was $140 per unit, while the planned variable cost of goods sold was $136 p
    10·2 answers
  • At January 1, 2016, Waterway Industries has beginning inventory of 1500 surfboards. Waterway estimates it will sell 5000 units d
    7·1 answer
  • Answer the question in the pic.
    6·2 answers
  • The Pan American Bottling Co. is considering the purchase of a new machine that would increase the speed of bottling and save mo
    14·1 answer
  • 3.
    8·1 answer
  • The economic growth demonstrated by this recruitment letter was primarily a result of —.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!