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Angelina_Jolie [31]
3 years ago
8

Gelb Company currently manufactures 53,500 units per year of a key component for its manufacturing process. Variable costs are $

2.95 per unit, fixed costs related to making this component are $67,000 per year, and allocated fixed costs are $64,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.50 per unit. Calculate the total incremental cost of making 53,500 units and buying 53,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier
Business
1 answer:
Airida [17]3 years ago
6 0

Answer and Explanation:

The computation of the total incremental cost is shown below;

For making 53,500 units

<u>Particulars Relevant     Relevant            Total </u>

<u>                        Per Unit    Fixed Costs        Relevant Costs </u>

Variable Cost

Per Unit           $2.95                          $157,825

                                                                    (53,500 units × $2.95)

Fixed

Manufacturing

Costs                        $67,000           $67,000

Total Incremental Costs to Make  $224,825

For making 53,500 units

<u>Particulars Relevant     Relevant            Total </u>

<u>                        Per Unit    Fixed Costs        Relevant Costs </u>

Purchase

Price

Per Unit        $3.50                                  $187,250

                                                                    (53,500 units × $3.50)

Total Incremental Cost to Buy   $187,250

The company should buy the component from the outside supplier as it saves the cost for ($224,825 - $187,250) = $37,575 plus the buying cost is less than the making cost

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Swifty Corporation plans to introduce a new product and is using the target cost approach. Projected sales revenue is $850500 ($
pochemuha

Based on the information given the desired profit per unit is $0.14 per unit.

First step is to find the unit using this formula

Units=Target sales revenue / Target selling price per unit

Units=$850500 / $4.05

Units =210,000

Second step is to calculate the  desired profit per unit using this formula

Desired profit per unit=Target selling price per unit - (Target costs / Units)

Desired profit per unit=$4.05-($821250 / 210,000)

Desired profit per unit=$4.05- $3.91

Desired profit per unit=$0.14

Inconclusion the desired profit per unit is $0.14 per unit.

Learn more here:

brainly.com/question/24315795

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2 years ago
An accrual refers to an event where the: 31)
Nesterboy [21]
The answer is c......
3 0
3 years ago
1.which of the following groups would you not send a persuasive business letter to?
stepladder [879]
<h3>1. Answer:</h3><h2>D. Vendors</h2><h3>Explanation:</h3>

Persuasive business letters are letters written in great detail which describes in length the strategies, practices, and tools required in order to reach a certain goal. These letters are considered official paperwork that represents your personality. Which is why they are sent out to official business partners as well as potential clients/users so as to detail your plan to them. Vendors do not need to know the inner workings and practices which is why they are excluded from the list.



<h3>2. Answer:</h3><h2> C. Convincing readers that the action you propose in easy.</h2><h3>Explanation:</h3>

The AIDA format is a widely used marketing practice that stands for Attention, Interest, Desire, and Action. Of these 4 phases, the action phase entails all the information that the reader needs in order to properly understand the actions needed in order to either make a purchase or at the very least to fully make the intention of making a purchase. Which is why the language used needs to be convincing so as to make the reader as comfortable as possible.


<h3>3. Answer:</h3><h2>A. builds desire by emphasizing how inexpensive the solution is</h2><h3>Explanation:</h3>

The AIDA format is a widely used marketing practice that stands for Attention, Interest, Desire, and Action. Through this letter, the objective is to convince the reader to feel the need, or desire, to make the purchase. Which is why great emphasis is put on the solution itself and how easy it is to implement. This can be done via showing how inexpensive it is, like in this case, or how easily implementable it is through other means. But regardless of the reason, it must emphasize and entice the reader into realizing how much they want the product.

<h3>4. Answer: </h3><h2>A. please return the enclosed coupon by June 15 for your free oil and filter change. </h2><h3>Explanation: </h3>

It is widely believed that the best way to make a concluding statement is to give the reader an incentive to reply, without setting very strict deadlines or conditions. As in the case above, the correct answer choice provides the reader with an incentive to answer by the 15th of June. Unlike the other options which either do not make the incentive clear to the reader or provide no incentive at all, the correct choice is tailored towards that specific reader and makes the message very clear.


<h3>5. Answer: </h3><h2>C. logical, emotional  </h2><h3>Explanation: </h3>

The objective of a persuasive message is to entice and convince the reader. Which is why it is very important to make the reader fully understand the product, realize its need and evaluate its affordability and/or feasibility. The best way to achieve this result is to form a logical argument so that the client fully understands both the need of the product and its uses, as well as, provide an emotional backing to that logical argument stating how much better they'd be through its use. Thereby fully captivating the reader.

<h3>6. Answer: </h3><h2>C. quickly getting to the point of the message </h2><h3>Explanation: </h3>

In writing a persuasive message, the structure of the message is very important. Rather than blurting out as much information in a small amount of time, or conversely, giving very little information, the best option is to provide an appropriate amount with proper structure. Which is why things like using positive language, being mindful of one's culture and heritage, and building credibility are important.


<h3>7. Answer: </h3><h2>B. emphasizing how horrible your company's customer service department is </h2><h3>Explanation: </h3>

While writing a persuasive message it is imperative to focus on what you and your company is best at and to play at your strengths. Mentioning the weaknesses and shortcomings of your company will almost always lead to a detrimental effect on the reader. Which is why it is a good practice to provide solutions and workarounds for any issue that may arise, rather than highlighting faults and thereby losing clients.

<h3>8. Answer: </h3><h2>D. By as many types and as much information as possible </h2><h3>Explanation: </h3>

The purpose of marketing and sales letters is to provide the reader with any and every way that the product can be used to solve a problem, and how it can be put to use. For this purpose, the reader needs to know all the types of products and all relevant information so they can make the decision of whether it helps them with their problems or not.

<h3>9. Answer: </h3><h2>D. Attention, interest, desire, action </h2><h3>Explanation: </h3>

This one is pretty self-explanatory. AIDA is a marketing model that is used to detail all the steps involved in the decision-making process of the consumer. It starts from where the consumer first hears of it (Attention), to the specific steps required in order to help the consumer make the decision of buying the product (Action). This is one of the longest and most widely used models in marketing.


<h2>Please Check the attachment for the remaining answers.</h2>
Download docx
6 0
3 years ago
Read 2 more answers
When Castle Corporation pays insurance premiums, the transaction is recorded as a debit to prepaid insurance. Additional informa
atroni [7]

Answer:

$227,500

Explanation:

The computation of the total amount of cash paid is shown below:

Cash paid for insurance premium = Prepaid Insurance at end of the year  + Prepaid Insurance recognized - Prepaid Insurance at the beginning of the year

= $61,250 + $218,750 - $52,500

= $227,500

We simply applied the above formula so that the correct amount of cash paid could come with respect to the insurance premium

5 0
3 years ago
Why should management increase with the size of the company?
Evgen [1.6K]

Answer:B. So that the growth can be carefully monitored and managed

Explanation: Management is an act of planing,coordinating and the executing responsibilities in order to improve efficiency.

When a company grows the number of managers are expected to increase so that the activities of the organization is effectively coordinated,growth can be properly and efficiently monitored and managed.

If growth is not efficiently monitored and managed it will hinder the overall performance of the organization.

6 0
3 years ago
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