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gregori [183]
2 years ago
8

Benitez Company currently outsources a relay switch that is a component in one of its products. The switches cost $26 each. The

company is considering making the switches internally at the following projected annual production costs: Unit-level material cost $ 6 Unit-level labor cost $ 5 Unit-level overhead $ 4 Batch-level set-up cost (8,000 units per batch) $ 34,000 Product-level supervisory salaries $ 42,000 Allocated facility-level costs $ 29,000 The company expects an annual need for 8,000 switches. If the company makes the product, it will have to utilize factory space currently being leased to another company for $2,400 a month. If the company decides to make the parts, total costs will be______________.
Business
1 answer:
love history [14]2 years ago
7 0

Answer:

Total cost is  253,800 $ and cost per unit is 31.725 $.

Explanation:

Material (8000 X 6)                                                    48000

Labor     (8000 X 5)                                                    40000

Factory OH ( 8000 X 4)                                              32000

Salaries                                                                         42000

Set up cost                                                                   34000

Facility level cost                                                         <u> 29000</u>

Total Manufacturing Cost                                           <u>225000</u>

Opportunity Cost ( 2400 X 12)                                     28800

Total Relevant Cost                                                      $<u>253,800</u>

<u>Cost / Unit (253800/8000)</u><em>                                     $  31.725/ unit. </em>

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Answer:E. Task Identity

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3 years ago
Jake, a store keeper at Triscent Hypermarket, is accused of stealing food products from the store. When confronted by his manage
hoa [83]

Answer:

Rationalisation

Explanation:

Rationalisation is the attempt by an individual to justify an action, behaviour, or attitude with logical reasoning. Mostly the reasons given are not appropriate enough.

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This is not enough reason to still but he still tries to rationalise his action based on his low salary.

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AleksandrR [38]

Answer:

False

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3 years ago
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morpeh [17]

Answer:

a. 10.04%

b. $82.78

Explanation:

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The Market rate of return - Risk-free rate of return) is also known as the market risk premium and the same is applied.

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= $5 ÷ (10.04% - 4%)

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7 0
3 years ago
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So it is false

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