Answer:
The answer is: Continue to make — $60,000 advantage.
Explanation:
We have to compare the current total costs with the total costs of buying the parts from a supplier.
Current costs
- total variable manufacturing $240,000
- Supervisor's salary $60,000
- Depreciation $20,000
- <u>Allocated fixed overhead $140,000</u>
- Total current cost: $460,000
Costs of buying the parts
- total purchase price $360,000
- Allocated fixed overhead $140,000
- <u>Depreciation $20,000</u>
- total costs for buying the parts $520,000
Since buying the parts from a supplier is $60,000 more expensive than continue manufacturing ($520,000 - $460,000), Andrews Co. should continue as it is.
5 Things to Consider When ChoosingYour Health Coverage
Type of plan and provider network. Do the health care providers, hospitals and pharmacies you prefer fall within the plan's network?
Premiums. How much will you pay per month for coverage?
Deductibles. What is the amount you must pay out of pocket before your coverage kicks in?
Copay or coinsurance
Coverage of Medicines
I hope it helped you!
Answer:
A $ 50
B $ 88
C $ 50
D $ 110
E $ 30
Explanation:
Cost Selling Price Sales Cost NRV
A 50 70 14 56.0
B 90 110 22 88.0
C 50 90 18 72.0
D 110 140 28 112.0
E 30 40 8 32.0
We pick between the net realizable value and the historic cost
In all cases but B , the Cost is lower than NRV
1: True. 2. False. 3. False. 4. True.
