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gregori [183]
3 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]3 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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OlgaM077 [116]

Answer:

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8 0
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3 years ago
You purchased two WXO 30 call option contracts at a quoted price of $.35. What is your net gain or loss on this investment if th
tekilochka [14]

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3 years ago
Santino bought a book for $23.54 the price of the book was $22. what was the sales tax rate
notka56 [123]
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Santino bought it for $ 23.54.
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Now we can find the sales tax rate by using the following formula:
tax \: rate = \frac{tax}{price \: excluding \: tax} \times 100\%

Filling in gives:
tax \: rate \: = \frac{1.54}{22} \times 100\% = 7\%
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3 years ago
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Answer:

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