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cestrela7 [59]
3 years ago
9

Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 60,000 parts is $160,

000, which includes fixed costs of $50,000 and variable costs of $110,000. The company can buy the part from an outside supplier for $3.00 per unit, and avoid 30% of the fixed costs. If Harvey Automobiles makes the part, how much will its operating income be?
Business
1 answer:
Bas_tet [7]3 years ago
3 0

Answer:

$55,000

Explanation:

The computation of the change in operating income is shown below:

= Buying cost - making cost

where,

Buying cost = Cost of producing parts × outside supplier per unit

                    = 60,000 parts × $3

                    = $180,000

And, the making cost would be

= Variable cost + fixed cost × given percentage

= $110,000 + $50,000 × 30%

= $110,000 + $15,000

= $125,000

So, the operating income would be

= $180,000 - $125,000

= $55,000

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If all firms expect greater demand for their products or services, they will hire _____ resources like labor and capital and the
nexus9112 [7]

Answer: more, growth

Explanation:

If all firms expect greater demand for their products or services, they will hire more resources like labor and capital and the economy will experience growth.

For an economy to grow, human capital, labor force, and technology can not be exempted. The quality of the materials used also plays a vital role as well. Once all these are in place, then the economy while start experiencing turn around.

6 0
3 years ago
Ted is trying to decide what cost of capital he should assign to a project. Which one of the following should be his primary con
MrMuchimi

Answer:

c. Mix of funds used to finance the project.

Explanation:

Most of the time businesses don't have the required funds to invest in projects especially capital intensive projects. So businesses raise long term finance from various sources, for example, from capital markets through issuance of shares/stocks and from debt sources through raising long term loans and debt instruments like bonds.

Now each source of finance has a different cost to the business depending upon the likely risks associated with each source of finance and nature of business itself. Therefore, businesses strive to assign such a cost of capital that primarily recovers the cost of finance and generate surplus wealth for the business. So the decision of what cost of capital should be assigned to a project primarily depends upon the the mix of funds used.

Secondly, risk level of the project might somehow effect the required rate of return expected by shareholders and/or debt providers but may not be the primary consideration in this decision.

5 0
4 years ago
If merchandise inventory is being valued at cost and the price level is steadily rising, the method of costing that will yield t
Anastaziya [24]

Answer:

FIFO

Explanation:

FIFO inventory system means the first purchased inventory are the first to be sold.

The LIFO inventory system means the last purchased inventory are the first to be sold.

The average cost inventory system means that the average cost of inventories are used as the cost of the goods sold.

For example, if a business has a beginning inventory of 5 biros at $2 each. On the first of December, the business purchased 10 pens at $2.50. On the 10th, 5 pens were purchased at $3. 15 pens are sold at $5 each. If the FIFO inventory system is used, the cost of goods sold would be = (5×$2)+(10×$2.50) = $35

Total revenue = $75

Net profit = $40.

If the LIFO inventory system is used, the cost of goods sold =(10 × $2.50) + (5×$3) = $40

Net profit = $35

The net profit is higher using the FIFO method.

I hope my answer helps you

3 0
3 years ago
Flandro Company uses a standard cost system and sets predetermined overhead rates on the basis of direct labor-hours. The follow
shtirl [24]

The Direct Materials standard cost is $13.20

The Direct Labor standard cost is $12.00

The Variable Manufacturing Overhead standard cost is $5.00

The Fixed manufacturing overhead standard cost is $11.80

Standard cost per unit- $ 42.00

The solution is in tabular form which is attached with this answer.

What is Variance

Variance is the process of evaluating the financial performance of your mission. fee variance compares your budget that was set before the project started and what was spent. this is calculated by using finding the difference among BCWP (Budgeted cost of work performed) and ACWP (actual cost of work performed.

Learn more about variance brainly.com/question/14116780

#SPJ4

5 0
2 years ago
A partial listing of costs incurred during december at rooks corporation appears below: factory supplies $7,000 administrative w
Eva8 [605]

To solve add up all of the product costs which include, factory supplies, administrative wages and salaries, direct materials and sales staff salaries.

$7,000 + $92,000 + $176,000 + $32,000 = $307,000

6 0
3 years ago
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