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Ne4ueva [31]
3 years ago
15

Swifty Corporation manufactures widgets. Bowden Company has approached Swifty with a proposal to sell the company widgets at a p

rice of $88560 for 100000 units. Swifty is currently making these components in its own factory. The following costs are associated with this part of the process when 100000 units are produced:
Direct material $ 33480

Direct labor 31320

Manufacturing overhead 43200

Total $108000

The manufacturing overhead consists of $17280 of costs that will be eliminated if the components are no longer produced by Swifty. From Swifty’s point of view, how much is the incremental cost or savings if the widgets are bought instead of made?

a)$19440 incremental savings
b)$2160 incremental savings
c)$19440 incremental cost
d)$6480 incremental cost
Business
1 answer:
sveta [45]3 years ago
4 0

Answer:D.$6480 Incremental cost

Explanation:

The cost of producing 100,00 units of wigdets are direct material plus direct labour and the overhead cost that will be eliminated if the widget is no longer produce by Swiftly which amounts to $17280.

This amount will be added because it's the amount of overhead directly attributable to the production of wigdets.

Additions of these cost leave the cost of manufacturing at $82,080.

Comparing this with the proposed sales price of $88560 means Swiftly will incur additional cost of $6480

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The corporate charter of Gagne Corporation allows the issuance of a maximum of 100,000 shares of common stock. During its first
Elanso [62]

Answer:

authorized 100,000

issued 70,000

outstanding 70,000 - 4,000 treasury stock = 66,000

Explanation:

The amount authorized doesn't change unless the company start  the legal procedure to do it.

The shares, once issued, can't be destroyed.

Te outstanding shares are the mount in the market, that will be the issued shaes less the treasury stock, which are shares in the company's possesion.

6 0
3 years ago
When a person receives an increase in wealth, what is likely to happen to consumption and saving?
Arturiano [62]

When a person receives an increase in wealth, Consumption increases and saving decreases

Both present and future consumption rises as a consumer's current income does as well. Savings increase because current spending increases but does so at a slower rate than current income growth. Again, both present and future consumption rises when the customer receives an increase in predicted future income.

Savings declines because current consumption rises while current income does not. Current and future consumption both grow when the consumer's wealth increases. Again, because current income has not increased, saving has decreased. These individual actions to adjust one's consumption and saving habits have a cumulative effect on the aggregate amount of desired consumption and saving.

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8 0
2 years ago
Jon enjoys fishing (which costs $20) and golf (which costs $30). last month, jon fished four times and golfed twice. the last fi
Gennadij [26K]
He did maximize the utility <span>according to the utility maximization rule</span>.

6 0
3 years ago
The direct write-off method of accounting for bad debts uses an allowance account. uses a contra asset account. is the preferred
jeyben [28]

Answer:

The correct answer is letter "D": does not require estimates of bad debt losses.

Explanation:

There are mainly two approaches while recognizing bad debts (unpaid debts):  <em>the allowance method </em>and <em>the direct write-off method</em>. Using the allowance method the unpaid account receivable goes through a series of stages until it is recognized as a bad debt. There are no set criteria to do so. When the firm eventually recognizes and calculates the amount of a bad expense, it is recorded in an allowance account. The negative balance diminishes the company's revenue.

The direct write-off method does not generate any allowance account. The account receivable is simply written-off after the company determines the debt as uncollectible. Thus, there is no need to estimate bad debt losses using this approach.

8 0
3 years ago
"Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growt
ladessa [460]

Solution:

D_{0} = $3.10, D_{1} - D_{3}= 20%, D_{4} += 5%, R = 11%

D_{1} = $3.10 • (1 + .20) = $3.10 • 1.20 = $3.720

D_{2} = $3.10 • (1 + .20)^{2} = $3.10 • 1.44 = $4.464

D_{3} = $3.10 • (1 + .20)^{3}= $3.10 • 1.728 = $5.357

D_{4} = $5.357 • (1 + 05) = $5.624

P_{3} = D_{4} / (R – g)= $5.624 / 0.06= $93.744

P_{0} = D_{1}  +  D_{2} + D_{3} + P_{3} =(1 + R) (1 + R) ^{2} (1 + R)^{3}

= $3.720 + $4.464 + $5.357 + $93.744

=  (1 + .11) (1 + .11)2(1 + .11)3= $3.720 + $4.464 + $99.101

=(1.11) (1.11)2(1.11)3= $3.720 + $4.464 + $99.101

=1.11 1.232 1.368= $3.351 + $3.623 + $72.462 = $79.44

4 0
3 years ago
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