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3 years ago

Sheridan, Inc. currently manufactures a wicket as its main product. The costs per unit are as follows:

Business

1 answer:

katrin [286]3 years ago

7 0

Answer

Sheridan should buy because doing so would save it $5900

Explanation

To determine the right course of action we will consider the relevant cost of making and buying

The relevant cost of making $

Variable cost ( 18 × 5,900 106200

Fixed cost (3× 5,900) <u> 17700 </u>

Total cost <u> 123,900</u>

Relevant of buying (20 × 5,900 ) = 118,000

Saving in cost by buying = 123,900 -118,000 =$5900

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Howrley-David, Inc., manufactures two models of motorcycles: the Fatboy and the Screamer. Both models are assembled in the same

Arte-miy333 [17]

Answer:

Fatboy Screamer Total

Direct labor . $ 2,000,000 $ 4,000,000 $ 6,000,000

Indirect materials . $600,000 $1,200,000 $1,800,000

Other overhead . $1,400,000 $2,800,000 $4,200,000

Materials cost . $4,000,000 $12,000,000 $16,000,000

Total cost . $8,000,000 $20,000,000 $28,000,000

Number of units . 2,000 4,000 6,000

Unit cost . $4,000 $5,000 $4,667

Explanation:

Assign the Material Cost to the Products appropriately. The conversion costs musts be allocated based on the number of units assembled. Conversion costs is the sum of Direct Labor and Manufacturing Overheads (Indirect Costs).

7 0

3 years ago

Kristen Lu purchased a used automobile for $16,750 at the beginning of last year and incurred the following operating costs:

Molodets [167]

Answer:

The average operating cost is $0.46 per mile

In deciding whether to to her use her own car or rent a car the costs are analysed below:

Variable operating cost is a relevant cost

Depreciation is not relevant as it is already cost and also it is sunk cost

insurance is not relevant as well

automobile tax and license is not relevant as it would be paid regardless of the option chosen

Explanation:

The average cost comprises of the variable operating cost per mile as well as the fixed operating cost per mile

variable operating cost per mile is $0.06

fixed cost operating cost=fixed costs/total miles driven=($3,350+$1,700+$900+$450)/16000=$6400 /16000=$0.40

average cost per mile=$0.06+$0.40=$0.46

4 0

3 years ago

Jessica works for ABC Shoes. At ABC, Jessica is responsible for establishing structure, strategic goals, and guiding her empl

vesna_86 [32]

Answer: Top Manager

Explanation:

Top manager are managers at or near the upper levels of the organization structure who have the responsible for making organization wide decisions and establishing the plans and goals that affect the entire organization.

Top managers typically have titles such as executive vice president, president, managing director, chief operating officer, or chief executive officer.

3 0

3 years ago

Globe Travel Agency sells Spring Break trips to University of Houston undergraduate students. The fixed cost of Globe is $100,00

Usimov [2.4K]

Answer:

the breakeven quantity at current price is 500 units

Explanation:

The computation of the breakeven quantity at current price is shown below:

Breakeven point = Fixed cost ÷ (Price per unit - variable cost per unit)

= $100,000 ÷ ($600 - $400)

= 500 units

Hence, the breakeven quantity at current price is 500 units

We simply used the above formula so that the correct units could arrive

5 0

3 years ago

Three Torque Inc., a U.S.-based multinational company, allows its managers to make facilitating payments in host countries to ex

Goryan [66]

Answer:

Cultural Relativism

Explanation:

Cultural relativism basically implies that other people's values, norms and morals should be understood and respected, rather than judged, usually from the viewpoint of another culture, as the saying goes when in Rome, act like the Romans.

Therefore, Three Torque Inc. has demonstrated Cultural Relativism in deciding to respect the ethics of countries that prohibit facilitating payments.

6 0

4 years ago