Based on the cost to produce each unit of the switches and the annual demand, the total costs will be $25,900 more than the cost of purchasing the switches.
<h3>What is the cost of producing the switches?</h3>
This can be found as:
= Variable cost + set up costs + supervisor's salary + opportunity cost of lost rent
= ( (6 + 5 + 4) x 5,000 units) + 45,500 + 41,000 + (3,700 x 12 months)
= $205,900
If they bought the switches at $36, they would cost:
= 36 x 5,000
= $180,000
Its cheaper to buy by:
= 205,900 - 180,000
= $25,900
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Answer:
$2.89
Explanation:
The formula and the computation of the earning per share is shown below:
Earning per share = (Net income - preference dividend) ÷ (Number of shares)
where,
Net income is
= $911,300 × 5.87%
= $53,493.31
And, the preference dividend is $0
and, the outstanding number of shares is 18,500
So earning per share is
= $53,493.31 ÷ 18,500 shares
= $2.89
Answer:
$1,500
Explanation:
On the end-of-period spreadsheet, the credit adjustment of $500 is made in the Debit balance of Supplies inventory, which will net off the values and resulted Supplies Inventory value will be $1,500 at the end of the year and it will be reported on the financial statements. $1,500 should be appeared for supplies in the adjusted Trial Balance column.