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
Yanka [14]
4 years ago
10

Suppose that a manufacturer needs to produce a custom aluminum housing for a special customer order. Because it currently does n

ot have the equipment necessary to make the housing, it would have to acquire machines and tooling at a fixed cost (net of salvage value after the project is completed) $170,000. The variable cost of production is estimated to be $30 per unit. The company can outsource the housing to a metal fabricator at a cost of $43 per unit. The customer order is for 14,000 units. What should it do? The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.
Business
1 answer:
insens350 [35]4 years ago
8 0

Answer:

It is more convenient to produce in house.

Explanation:

Giving the following information:

It would have to acquire machines and tooling at a fixed cost (net of salvage value after the project is completed) $170,000. The variable cost of production is estimated to be $30 per unit. The company can outsource the housing to a metal fabricator for $43 per unit. The customer order is for 14,000 units.

Make in house:

Total cost= 30*14,000 + 170,000= $590,000

Buy= 43*14,000= $602,000

It is more convenient to produce in house.

You might be interested in
You are considering a 10-year, $1,000 par value bond. Its coupon rate is 8%, and interest is paid semiannually. If you require a
Schach [20]

Answer:

$1,061.28

Explanation:

We need to calculate the present value of the bond using the minimum effective rate of 7.1225%

First we calcualte the present value of an annuity of $80 for 10 years

C * \frac{1-(1+r)^{-time} }{rate} = PV\\

80 * \frac{1-(1+7.1225%)^{-10} }{7.1225%} = PV\\

PV = $558.72

Then we calculate the $1,000 in 10 years present value

\frac{Principal}{(1 + rate)^{time}}= PV

\frac{1,000}{(1 + 7.1225%)^{10} } = PV

PV =  $502.57

Then we add both values

$502.57 + $558.72 = $1,061.28

This will be the present value AKA market price which yields the minimun rate of 7.1225%

7 0
3 years ago
What is an emergency fund?
alexira [117]

Answer:

box of money.

Explanation:

it is for money so u can get the money for emergency's

4 0
3 years ago
Pretax financial statement income for the year ended December 31, 2018, was $25 million for Scott Pen Company. Scott’s taxable i
valkas [14]

Answer:

Option B $9 million is the correct answer.

Explanation:

The current portion of income tax expense is the taxable for the year multiplied by the prevalen tax rate in the year.

Current portion of income tax expense=taxable income*tax rate

taxable income is $30 million

tax rate is 30%

current portion of income tax expense=$30 million*30%=$ 9 million

Option B is the correct answer

However,if one chooses option A,it implies that one had used pretax net income of $25 million in computing the income tax expenses instead of taxable income on which tax is payable

6 0
3 years ago
Read 2 more answers
Diversification is most effective when security returns are _________. a. high b. negatively correlated c. positively correlated
Y_Kistochka [10]

Answer: Option B  

                       

Explanation: In simple words, diversification refers to the process of allocating capital in different investments to reduce the overall risk of the investment portfolio.

Therefore, analyst tries to make portfolio in such a way that securities will be negatively correlated. If two securities are negatively correlated then the decrease of one will lead to proportionate increase of others.

This ensures that the investors money will not be depreciated but at the same time the potential for abnormal returns also decreases.

3 0
3 years ago
Bullie Jean has $1.20 to spend and wants to buy cither a new amplifier for her guitar or a new mp3 player to listen to music whi
Rasek [7]

Answer: b. people face trade-offs

Explanation:

From the question, we are informed that Bullie Jean has $120 to spend and wants to buy cither a new amplifier for her guitar or a new mp3 player to listen to music while working out.

We are further informed that the amplifier and the mp3 player cost $120, each and so she can only buy one. This shows that people face trade offs and have to make a choice regarding some decisions. Here, an opportunity cost will be the one that she didn't buy at the expense of the other.

6 0
3 years ago
Other questions:
  • List three causes of a favorable direct materials price variance. ​(Select three possible​ answers.)
    12·1 answer
  • What finger do you use to strike the T key?
    9·2 answers
  • To be effective, market researchers must ___________ collect, record, analyze, and interpret data. Group of answer choices syste
    14·1 answer
  • Help me out with this question please ​
    5·1 answer
  • If you damage a house or fence with your car you can cover for the damage under ?
    12·1 answer
  • Read the scenario. Raoul is heading to college and needs a reliable car. He has a steady part-time job that he can keep while in
    10·2 answers
  • Jennifer is trying to decide between a cup of coffee and a glass of orange juice. The coffee costs $1 and yields 10 units of add
    14·1 answer
  • the probabilities that stock A will rise in price is 0.61 and that stock B will rise in price is 0.39. Further, if stock B rises
    5·1 answer
  • The letters A, B, C, D, E, F, G are called what?
    15·1 answer
  • A company had total liabilities of $275,000 and the owner’s equity was $1,722,000. According to the fundamental accounting equat
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!