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Greeley [361]
3 years ago
9

The following standard costs pertain to a component part manufactured by Bor Co.:

Business
1 answer:
larisa [96]3 years ago
3 0

Answer:

Relevant cost= $30

Explanation:

Giving the following information:

Direct materials $4

Direct labor 10

Factory overhead 40

Standard cost per unit $54

Fixed cost is 60% of applied factory overhead, and is not affected by any make or buy decision.

<u>The relevant cost in a "make or buy" decision is the cost that can be avoided. Therefore, the fixed manufacturing cost is not relevant.</u>

<u></u>

Relevant overhead= 40*0.4= $16

Relevant cost= 4 + 10 + 16

Relevant cost= $30

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If a company reports profit margin of 33.1% and investment turnover of 1.20 for one of its investment centers, the return on inv
PolarNik [594]

If the investment turnover is  1.20 for one of its investment centers, the return on investment must be: 39.72%.

Using this formula

Return on investment = Profit margin ×Investment turnover

Where:

Profit margin=33.1% or 0.331

Investment turnover=1.20

Let plug in the formula

Return on investment = 0.331×1.20

Return on investment = 0.3972×100

Return on investment = 39.72%

Inconclusion If the investment turnover is  1.20 for one of its investment centers, the return on investment must be: 39.72%

Learn more about return on investment here: brainly.com/question/23823344

7 0
2 years ago
Suppose the tax rate on the first​ $10,000 of income is 0​ percent; 10 percent on the next​ $20,000; 20 percent on the next​ $20
dsp73

Answer:

option (A) $32,000 for A and $7500 for B

Explanation:

Given:

Tax rate as:

on the first​ $10,000 of income = 0%

10% on the next​ $20,000

20% on the next​ $20,000

30% on the next​ $20,000

40% on income over​ $70,000

Income of family A = $120,000

Thus,

For A

Up to $10,000 ; tax = 0

Tax amount from $10,000 to $30,000 at 10 % tax rate

= 10% × $20,000

= $2,000

From $30,000 to $50,000 at 20 % tax rate

= $20,000 × 20%

= $4,000

From $50,000 to $70,000 at 30 % tax rate

= $20,000 × 30%

= $6,000

Tax amount above $70,000 to $120,000 at 40 % tax rate

= (120,000 - $70,000) × 40%

= $50,000 × 40%

= $20,000

Therefore,

Total tax bill for family A

= $2,000 + $4,000 + $6,000 + $20,000

= $32,000

Similarly,

For family B

Income of family B = $55,000

Thus,

Up to $10,000 = $0

From $10,000 to $30,000 at 10 % tax rate

= $20,000 × 10%

= $2,000

From $30,000 to $50,000 at 20 % tax rate

= $20,000 × 20%

= $4,000

Tax amount from $50,000 to $70,000 at 30 % tax rate

= ($55,000 - $50,000) × 30%

= $5,000 × 30%

= $1,500

Therefore,

Total tax bill for family B = $2,000 + $4,000 + $1,500 = $7,500

Hence,

The correct answer is option (A) $32,000 for A and $7500 for B

5 0
3 years ago
First National Bank of America has more than 75% of its assets in first residential fixed-rate mortgages that mature in more tha
iris [78.8K]

Answer:

2. Interest income will drop by less than $3 million for a sudden 1% drop in market interest rates

Explanation:

Since in the question it is mentioned that there is decrease in 2021 interest income of $3 million in the case when there is a sudden decline of 1% in the rate of interest of the market this is due to the convexity of the curve as the GAP analysis and assume straight line

So the option 2 is correct

7 0
3 years ago
An outside supplier has offered to provide Maxter Corp with the 10,000 subcomponents at a $65 per unit price. If Maxter Corp acc
Irina18 [472]

Answer:

Option b ($150,000 decrease) is the correct answer.

Explanation:

Given:

Fixed manufacturing overhead,

= $65

Units,

= 10,000

According to the question,

Current cost is:

= 70\times 10,000

= 700,000 ($)

The expected cost will be:

= Fixed \ manufacturing \ overhead+(Units\times Purchase \ price)

By substituting the values, we get

= (65\times 10000)+200000

= 650000+200000

= 850000

then,

= 850000-700000

= 150000 ($)

Thus the above is the right answer.

3 0
3 years ago
Which expense category will most likely be changed to allow money for the purchase of a car?
Ivan
<h2>Reducing the "Entertainment " will hold good for the given scenario</h2>

Explanation:

There things which a man needs like food, water, shelter, etc.

Savings : This aspect is necessary for helping us in crucial point. It can serve as an another hand on demand.

Groceries : This is most important component of every men and women for living. So it cannot be reduced.

Utilities : This is equally important.

Entertainment : This shows luxurious aspect and not a mandatory one. So the amount spent in this category should be reduced.

7 0
3 years ago
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