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sineoko [7]
3 years ago
10

The SP Corporation makes 48,000 motors to be used in the production of its sewing machines. The average cost per motor at this l

evel of activity is: Direct materials $ 10.70 Direct labor $ 9.70 Variable manufacturing overhead $ 4.05 Fixed manufacturing overhead $ 5.00 An outside supplier recently began producing a comparable motor that could be used in the sewing machine. The price offered to SP Corporation for this motor is $27.55. If SP Corporation decides not to make the motors, there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. Direct labor is a variable cost in this company. The annual financial advantage (disadvantage) for the company as a result of making the motors rather than buying them from the outside supplier would be: Multiple Choice $240,000 ($91,200) $343,200 148,800
Business
1 answer:
gizmo_the_mogwai [7]3 years ago
3 0

Answer:

f the company buys the component, income will decrease by $148,800.

Explanation:

<u>We will take into account only the avoidable costs.</u>

<u />

Make in-house:

Direct materials $ 10.70

Direct labor $ 9.70

Variable manufacturing overhead $ 4.05

Total unitary cost= $24.45

Buy:

Price= $27.55

<u>We need to determine the total cost of both options:</u>

Make in-house= 24.45*48,000= $1,173,600

Buy= 27.55*48,000= $1,322,400

Difference= 1,173,600 - 1,322,400= $148,800

If the company buys the component, income will decrease by $148,800.

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After playing two football​ games, a professional football​ team's defense had given up an average of 28 points per game. After
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Answer:

In the third football game, the team's defense give up 10 points.

Explanation:

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5 0
3 years ago
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Answer:

Taking into consideration only the income, the increase in unit sales will not increase the income of Honda. It can impact in other ways, like a decrease in inventory.

Explanation:

Giving the following information:

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The easy way to remember these 4 categories of stakeholders is by using the acronym UPIG: customers, providers, influencers, governance.

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