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
kondaur [170]
3 years ago
15

Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $17.00

per unit. The unit cost for the business to make the part is $22.00, including fixed costs, and $9.00, not including fixed costs. If 37,884 units of the part are normally purchased during the year but could be manufactured using unused capacity, the amount of differential cost increase or decrease from making the part rather than purchasing it?
a. $226,828 cost increase
b. $421,252 cost decrease
c. $64,808 cost decrease
d. $64,808 cost increase
Business
1 answer:
Vsevolod [243]3 years ago
8 0

Answer:

$303,072 - The Question is altered by the Students, so the options given are not correct.

Explanation:

In relevant cost the only cost relevant is the variable cost not the fixed costs. So differential cost would be the difference of the cost of purchasing and the cost of making the product at home, excludin the fixed cost.

Differential cost = Cost of purchasing   Less     Cost of making at home

Cost of purchasing one unit is $17 which is variable cost. Likewise the cost of making the part at home is $9 which is also 100% variable cost. So by putting values, we have:

Differential cost = 37,884 Units * $17  -  37,884 Units * $9 = $303,072

You might be interested in
A savings account is useful for all of the following purposes EXCEPT…
Setler79 [48]

Answer:

D

Explanation:

5 0
3 years ago
Suppose a large apartment complex is infested with cockroaches that have never been exposed to glucose-baited poison. a new tena
lord [1]
<span>The success of the glucose-averse cockroaches in their new environment depends on the future use of glucose-baited poison in the apartment. If glucose-baited poison is not used, it is likely that the resident cockroaches will outcompete the new cockroaches, as the resident cockroaches will not exclude glucose-containing foods from their diet. However, the use of glucose-containing poison in the apartment will provide the new cockroaches a distinct selective advantage, as they will survive to reproduce, whereas the majority of the resident cockroaches will die.</span>
7 0
3 years ago
A turret lathe section has eight machines, all devoted to the production of the same part. The section operates 10 shifts/wk. Th
kodGreya [7K]

Answer:

Pc = 8294.4 units per week

Explanation:

Pc = U * A * ( N * sw * Hsh * Rp )/ n

Where

Pc = production capacity in terms of availability and utilization per week

U = utilization factor = 80% = 0.8

A = availability = 90% = 0.9

N = number of work centers = 8

sw = number of shifts per week = 10

Hsh = number of hrs per shift = 8

Rp = hourly production rate = 18 units /hr

n = number of distinct operations = 1 , same machine & part

So therefore,

Pc = 0.8 * 0.9 (8 * 10 * 8 * 18)/ 1

Pc = 8294.4 units per week

8 0
3 years ago
On December 2, Coley Corp. reacquired 1,400 shares of its $4 par value common stock for $20 each. On December 20, Coley Corp. re
NISA [10]

Answer:

Credit Treasury Stock $20,000

Explanation:

Treasury shares are those share which is bought back by the company. Treasury stock account is the contra equity account which is deducted from the equity value.

Journal Entry for Re-issuance of treasury stock

Dr.     Cash ( 1,000 x $11 )                    $11,000

Dr.     Add-in capital Treasury stock   $9,000

Cr.    Treasury Stock ( 1,000 x $20 )   $20,000

Due to debit nature of treasury stock it is credit to reduce the balance of treasury stock.

8 0
4 years ago
The mean income per person in the United States is $41,500, and the distribution of incomes follows a normal distribution. A ran
rewona [7]

Answer:

0.010 level of significance = z value of -2.33

41,500-47,500/(10,600/3.1)= -1.754

Z value is less than -2.33 which means that there is not enough evidence to conclude that residents of wilmington have more income than the national average at significance level of 0.010

Explanation:

4 0
3 years ago
Other questions:
  • Your boss would like your help on a marketing research project he is conducting on the relationship between the price of soup an
    10·1 answer
  • A __________ is a sample of consumers or stores from which researchers take a series of measurements. representative group jury
    8·1 answer
  • What is the difference between supply and quantity supplied?
    6·1 answer
  • Consider the circular flow model to answer the questions that follow.
    6·1 answer
  • Which of the following statements is true regarding a cross-functional team?A) A cross-functional team is made up of employees f
    13·1 answer
  • If a person makes a deposit of 10000 or more into a bank account, the bank must notify the
    6·1 answer
  • A résumé should be only one or two typed pages.<br> True or False
    15·2 answers
  • How would you best describe a manufacturing employee who has lost his job because he was replaced by a robot (new technology) an
    10·1 answer
  • Kaye Blanchard is 50 years old. She has $66000 of adjusted gross income and 15,200 of qualified medical expenses. She will be it
    11·1 answer
  • The precaution of prohibiting employees from bringing personal computing devices into a facility is what type of security contro
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!