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Brut [27]
3 years ago
7

Bramble Corp., Inc. can produce 100 units of a component part with the following costs: Direct Materials $23000 Direct Labor 350

0 Variable Overhead 26000 Fixed Overhead 11000 If Bramble Corp. can purchase the component part externally for $59000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision
Business
1 answer:
tia_tia [17]3 years ago
7 0

Answer:

$2,500

Explanation:

Bramble Corp., Inc

Purchase the component part externally $59,000 - $4,000

=$55,000

Direct Materials $23,000

Direct Labor $3,500

Variable Overhead $26,000

Total $52,500

Hence:

$55,000 -$52,500

=$2,500

Therefore the correct make-or-buy decision will be $2,500

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A common trade-off that investors face when making investment decisions is the risk-return trade-off.

A trade-off simply means the situational decision where an economic entity loses one quantity in order to gain something else.

A common trade-off that investors face when making investment decisions is the risk-return trade-off. It should be noted that higher risks are usually associated with more probability of higher return. Also, a lower risk has a greater probability of lower return but it's safer.

In this case, investors are usually faced with making a decision of whether to go for a safer investment or to go for one with more risk that will yield more returns.

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mafiozo [28]

Answer:

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Explanation:

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4 0
3 years ago
Which of the following are criteria for determining whether to record an asset as a fixed asset?
valentinak56 [21]

Answer:

must be long lived and used by the company in its normal operations

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Answer:

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