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yKpoI14uk [10]
3 years ago
5

U-RIDE, Inc. currently produces the electric engines that are used in golf carts made and sold by the Company. Electco has offer

ed to sell the electric engines to U-RIDE at a price of $235 each.
Current production information follows:
Unit-level material and labor $200
Facility-level depreciation of manufacturing equip. $5,500 /month
Product-level engine production supervisor's salary $2,500 /month
Annual facility-level utilities $17,500

U-RIDE is currently operating profitably producing and selling 2,000 engines a year using 90% of its manufacturing capacity. Which of the following is true?

a. U-RIDE should make the engines for cost savings of $25 per unit.
b. Buying the units would increase U-RIDE's cost by $13 per unit.
c. U-RIDE has avoidable costs of greater than $200 per unit and should therefore buy the engines.
d. Buying the units would increase profitability by $38 per unit.

Buying the engines will free up manufacturing capacity that could be used to make a new economy line golf cart that would produce an additional $65,000 profit per year. U-RIDE is currently operating profitably producing and selling 2,500 engines annually. Based on this information, which of the following is true?

a. The $36,000 is not relevant because it is an estimate.
b. Buying the units would increase U-RIDE's cost by $13 per unit.
c. U-RIDE has avoidable costs of less than $200 per unit and should therefore buy engines.
d. The cost of buying the engines is $5 per unit less than the relevant cost of making the units.
Business
1 answer:
VLD [36.1K]3 years ago
7 0
The first one will be c and the second one will be b
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nabors nagamatsu deposited a check for 299.45 and a check for 229.52 he received 42 on cash what was his total deposit
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3 years ago
You own a portfolio that has four stocks: A, B, C, and D. The portfolio has 50% of your money in stock A, 10% in B, 15% in C, an
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Answer:

WB = BA(WA) + BB(WB) + BC (WC) + BD(WD)

               1.6 = 0.83(0.5) + 1.50(0.1) + 1.42(0.15) + BD(0.25)

               1.6 = 0.415 + 0.15 + 0.213 + 0.25BD

                1.6 = 0.778 + 0.25BD

             1.6-0.778 = 0.25BD

                 0.822  = 0.25BD

                     BD   = 0.822/0.25

                     BD = 3.288

Explanation: The question relates to Beta of a portfolio. The Beta of a portfolio is the aggregate of Beta of each stock multiplied by the weight of each stock. The Beta of stock D was not given, thus, it becomes the subject of the formula.

3 0
3 years ago
The Coffee Cup Company had a credit balance of $500 in interest payable at the beginning of the period, and a credit balance of
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Answer:

The adjustment to net income for the period will be reported as:

Debit Interest expense ($600 - $500)                 $100

Credit Interest payable                                          $100

<em>(Being interest expense for the period)</em>

Explanation:

Interest payable is the accumulation of the interest expense in the balance sheet overa specific period of time agreed with the creditor. When it becomes payable, the interest payable account is debited while cash is credited.

The interest payable in the Coffee Cup Company's account increased from $500 (credit balance) to $600 credit balance. This means there would have been an additional $100 interest expense recorded during the period in order to increase it to $600.

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Trade deficit provides opportunities for domestic businesses to produce quality goods and services to match foreign products.

With domestic merchandise to be had at decreased costs, the inflation price decreases. And a market with a wide style of each home and imported items offers the detail of preference to the clients. In this kind of case, growth in imports shows a fast, developing financial system. And a growing financial system draws more foreign investment.

The balance of change, industrial stability, or internet exports, is the difference among the monetary price of a country's exports and imports over a sure term. from time to time a difference is made between a balance of trade for items as opposed to one for offerings.

A trade deficit reduces the incomes of home people, pushing many into lower earnings brackets. households with decreased incomes generally find it lots more difficult to store. therefore, growing change deficits can and do lessen national savings.

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