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kumpel [21]
3 years ago
9

Scott Corporation produces a part for use in the production of one of its products. The per-unit costs associated with the annua

l production of 1,000 units of this part are as follows: Direct Materials $10.50 Direct labor $24.00 Variable factory overhead $ 5.50 Fixed factory overhead $12.00 Total Costs $52.00 $5,000 of the fixed factory overhead costs associated with the production of this product are common fixed costs. Larson Company has offered to sell 1,000 units of the same part to Scott Corporation for $42 per unit. Scott should:
Business
1 answer:
denpristay [2]3 years ago
3 0

Answer:

It is cheaper to buy the part. The company will save $5,000.

Explanation:

Giving the following information:

UNitary production cost:

Direct Materials $10.50

Direct labor $24.00

Variable factory overhead $ 5.50

Total avoidable Fixed factory overhead= (12*1,000) - 5,000= 7,000

Larson Company has offered to sell 1,000 units of the same part to Scott Corporation for $42 per unit.

First, we need to calculate the total cost of making the units:

Total cost= (10.5 + 24 + 5.5)*1,000 + 7,000= $47,000

Now, the total cost of buying them:

Buy= 1,000*42= $42,000

It is cheaper to buy the part. The company will save $5,000.

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The Universal Container's customer support organization has implemented knowledge centred support (KCS) in its call centre. Howe
olga2289 [7]

Answer:

Measure and reward agents based on the no of new articles approved

Explanation:

A key way to improve knowledge sharing strategy is by rewarding valuable contribution.

Giving rewards for just any contribution might leads to a massive inflow of useless information purposely in order to claim rewards and at the end of the day , the data system is filled up with jargon and not knowledge.

Knowledge sharing credit should be attached only to information that adds value. Moreover as values can be relative  ,it should be stated that value will be decided by the users of the information , which means the higher the user , the higher the value .

7 0
3 years ago
Under the direct write-off method of uncollectible accounts, the effect on the accounting equation of writing off a customer's a
FrozenT [24]

Answer:

Correct option is (C)

Explanation:

Under direct write off method, if a particular accounts receivable is written off, then no counter asset is created. Bad debt expense is debited and accounts receivable is credited.

As bad debt expense is reported on the debit side of income statement, profit reduces by the same amount thereby decreasing stockholder's equity. Since accounts receivable is credited, accounts receivable is decreased by the same amount in the balance sheet, thereby decreasing assets.

7 0
3 years ago
Distinguish between the short run and the long run. In the short​ run, ______. In the long​ run, ______.
kenny6666 [7]

Answer:

B. the quantity of only one factor of production is​ fixed; the quantities of all factors of production can be varied

Explanation:

  • As in the short run a firm can have a conceptual fixed time, while the other factors are variable in amount as the foxed costs have no impacts on the short run but may tend to have an impact on the form longer run that could potentially increase the output that could be increased by increasing the number of variable costs.
  • Thus, in short, the form is in a monopolistically competitive market hence the quantity of at least one input is fixed.
5 0
2 years ago
A company that doesn't just make money but makes a difference in the world and gives back to the community is a company that eng
mote1985 [20]
Engages in ' Corporate Social Responsibly' the money they earn will be given back to society

For example: a shoe factory allows its customer to buy a pair of shoes so the money goes to society the needy. There is trust between the company and customer and the money benefits society
8 0
3 years ago
The following information pertains to Havana Corporation's defined benefit pension plan: ($ in 000s) 2018 2019 Beginning balance
Hitman42 [59]

$504000 is the actual return

<u>Explanation:</u>

particulars                           calculation Amount

Service cost                                         700000

Interest cost                     600000 * 8 \%        480000

Less: Expected return 10 \% * 5760000    576000

Prior service cost                                    48000

Net loss                                                     30000

Pension expense                                       682000

Therefore, the pension expense is $682000

<u>The computation is as follows for the calculation of return (in $000’s) </u>

<u>Plan assets </u>

Beginning = $5760

Actual return = ?

Cash contributions = 696

Less: Retireee benefits = (624)

Ending balance = $6336

Thus after solving this, we get the actual return that is equal to = $504,000

5 0
3 years ago
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