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
elena-14-01-66 [18.8K]
3 years ago
10

Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $120,000

Direct Labor 25,000 Variable Overhead 45,000 Fixed Overhead 30,000 If Tex's Manufacturing Company can purchase the component externally for $190,000 and only $5,000 of the fixed costs can be avoided, what is the correct make-or-buy decision?
Business
1 answer:
Thepotemich [5.8K]3 years ago
3 0

Answer:

Is better to continue the production of the component as currently is taking allocated overhead from other department. Buying will inccur in a financial disadvangate of 25,000

Explanation:

<u>Make</u>

Direct cost:

DM                   120,000

DL                      25,000

VMO            <u>      45,000  </u>

Total Variable:  185,000

Tracable fixed cost: 5,000

Total cost:   190,000

<u>Buy option:</u>

purchase 190,000

unavoidable cost: (30,000 - 5,000) = 25,000

Total cost: 215,000

You might be interested in
Mrs. Smith operates a business in a competitive market. The current market price is $8.10. At her profit-maximizing level of pro
Luba_88 [7]

Answer:

Mrs Smith either shut down the business or invest in efficient equipements that lowers the total cost to below $7

Explanation:

The reason is that the you can not make profit if you product is sold in the market at a higher price than the competitor who offers the same product with the same features. So here, Smith can not make profits by selling the product at $8 because here total cost is $8.25 per unit.

So either she should invest in the business equipments which bring efficiencies and keeps the total costs to below $7 or she should shut down her business because the business is turned into loss making machine.

3 0
3 years ago
A 4.9 percent corporate coupon bond is callable in 10 years for a call premium of one year of coupon payments. Assuming a par va
NeTakaya

Answer:

$1,049

Explanation:

Data given in the question

Par value = $1,000

Interest rate = 4.9%

Time period = 10 years

So, by considering the above information, the price paid to the bond holder is

= Par value + Par value × rate of interest

= $1,000 + $1,000 × 4.9%

= $1,000 + $49

= $1,049

Hence. the price paid to the bond holder is $1,049

4 0
2 years ago
Solve the simultaneous equation <br>y+x=4<br>2y-x=5​
beks73 [17]

Answer:

<h2>Value of X = 1</h2>

<h2>Value of y = 3</h2>

Solution,

Using substitution method,

y + x = 4

Move 'x' to the left hand side and change its sign:

y = 4 - x --------> equation (i)

Now,

2y - X = 5

putting the value of y from equation (i)

2( 4 - x ) - X = 5

8 - 2x - x = 5

8 - 3x = 5

- 3x = 5 - 8

- 3x = - 3

The difference sign (-) will be cancelled in both sides

3x = 3

3x/3 = 3/3

X = 1

Value of X is 1

Now, replacing the value of X in equation (i)

y = 4 - x

= 4 - 1

= 3

Value of y is 3

Hope this helps...

Good luck on your assignment...

6 0
3 years ago
My helicopter Brother said Sup
AlekseyPX

Answer:

BRO YOU STILL ON THIS TONY THING xDDDD

Explanation:

5 0
3 years ago
Read 2 more answers
Statutes prohibit police officers from demanding money for investigating and apprehending criminals and prohibit firefighters fr
irakobra [83]

Answer:

The citizen, however, does not have to pay because the police officer has a pre existing duty.

Explanation:

"Preexisting duty rule is a common-law rule of contract. It says that the rule that performance of an act by which a party is already contractually bound to perform does not constitute valid consideration for a new promise. In other words, a party's offer of a performance already required under an existing contract is an insufficient consideration for modification of the contract."

Then, the citizen doesn't have to pay because the police officer has an existing contract, and it's considered an insufficient consideration for modification of that contract.

Reference: US Legal, Inc, 2019. “Preexisting Duty Rule Law and Legal Definition.” Preexisting Duty Rule Law and Legal Definition | USLegal, Inc., 2019

3 0
3 years ago
Other questions:
  • What are the most important reasons why eCommerce has seen explosive growth in recent years? In your opinion, will this growth i
    8·1 answer
  • Q 4.13: salaries and wages expense should have been accrued on december 31st, but the entry was not made. the result of this ove
    7·1 answer
  • A parents' group in a small town formed an unincorporated association to run a little league soccer team. Alex was elected presi
    11·1 answer
  • In Techsorrd Inc., the leads of the technical team, support team, and marketing team anticipate the resource needs for their res
    5·1 answer
  • First Simple Bank pays 6.4 percent simple interest on its investment accounts. If First Complex Bank pays interest on its accoun
    8·1 answer
  • Care sunt avantajele si dezavantajele serviciului de transport din bucuresti REATB
    9·1 answer
  • Other things being equal, foreign governments and corporations would demand ____ U.S. funds if their local interest rates were s
    15·1 answer
  • 2) What is the correct way to mark False Starts in Full Verbatim?
    8·1 answer
  • Who is the best rapper??
    13·2 answers
  • Assume the manager is located at point B in the diagram above, and he is charging a price of P0. What does the demand for the fi
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!