Answer:
It is more convenient to produce in house.
Explanation:
Giving the following information:
Direct materials $ 4.00
Direct labor 8.00
Overhead 9.00
Total costs per unit $ 21.00
Direct materials and direct labor are 100% variable. The overhead is 80% fixed. An outside supplier has offered to supply the 61,000 units of RX5 for $19.00 per unit.
The fixed costs are unavoidable, therefore we will concentrate the analysis in the variable costs.
Make in house:
Unitary cost= 4 + 8 + (9*0.20)= $13.8
Buy= 19
Difference= 19 - 13.8= 5.2
It is more convenient to produce in house.
Answer:
The answer is stated below:
Explanation:
The accounting equation is as follows:
Assets = Liabilities + Stockholders' Equity
Analyzing the transactions:
1. The service is provided to customer on account, which result in increase in assets and the stockholders' equity
So,
Assets = Liabilities + Stockholders' equity
+ $4,000 = $0 + +$4,000
2. The equipment is purchased by signing a note, which result in increase in liability and also increase in the assets.
So,
Assets = Liabilities + Stockholders' equity
+ $10,500 = +$10,500 + $0
3. Paid for the advertising, which result in decrease in cash as well as decrease in the equity of the company.
So,
Assets = Liabilities + Stockholders' equity
- $1,200 = $0 + -$1,200
Answer:
1. $46,550
2. $405,000
3. $450,600
Explanation:
1. Computation of differential cost regarding the decision to buy the model 200
Differential cost = Cost of a new model 300 - Cost of a new model 200
Differential cost = $396,350 - $349,800
Differential cost = $46,550
So, the differential cost regarding decision to buy model 200 is $46,550.
2. Sunk costs are the costs which are already incurred by the entity in the past and which are not relevant to decision made today. In this case, sunk cost is the cost of the machine purchased seven years ago for $405,000.
3. Opportunity cost is the profit forgone by chosen alternative course of action. In this case, the Opportunity cost regarding the decision to invest in the model 200 machine is $450,600.
Answer:
The correct answer is 842.1 Pesos and 941.18 Pesos.
Explanation:
According to the scenario, the given data are as follows:
Price of Jeans = $80
So, if exchange rate is $0.095 = 1 pesos
Then pesos required to buy that jeans can be calculated as follows:
Pesos required = $80 ÷ $0.095
= 842.1 Pesos
And if 1 Pesos = $0.085, then
Pesos required = $80 ÷ $0.085
= 941.18 Pesos
Answer:
a. 7,900
b. 10,100
Explanation:
As for the provided information,
We know at break even point taxes shall be = 0 as there are no profits and no losses.
a. At break even: = 
Fixed Cost = $308,100
Contribution per unit = Selling price - Variable cost = $79 - $40 = $39
Therefore, break even units = 
b. In case the company wants a profit of $51,480 after tax @ 40% then,
Earnings before taxes = 
= $85,800
Therefore, number of units = 
= 
= 10,100
