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Elina [12.6K]
3 years ago
13

Han Products manufactures 37000 units of part S-6 each year for use on its production line. A this level of activity, the ost pe

r unit for part S-6 is:
Direct materials $3.60
Direct labor 9.00
Variable manufacturing overhead 2.40
Fixed manufacturing overhead 6.00
Total cost per part $21

An outside supplier has offered to sell 37,000 units of part S-6 each year to Han Products for $19 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $87,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier.

Required:
What is the financial advantage (disadvantage) of accepting the outside supplier's offer?
Business
1 answer:
babymother [125]3 years ago
5 0

Answer:

$13,000

Explanation:

The computation of the financial advantage (disadvantage) of accepting the outside supplier's offer is given below:

Making cost  

Materials (37,000 × $3.60)        $133,200

Direct Labour (37,000 × $9.00) $333,000

Overhead:  

Variable (37,000 × $2.40)   $88,800

Fixed      (37000 × 6.00)      $222,000

Total making cost             $777,000

For buying cost  

outside market purchase (37,000 × 19.00) $703,000

Unavoidable fixed overheads (37000 × 6 × 2÷3) $148,000

Less: Rentout of resources           ($87,000)

Total Cost if buy                         $764,000

So, the Financial advantage of accepting the outside suppliers offer is

= $777,000 - $764,000

= $13,000

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The expansionary phase of the business cycle is characterized by
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Answer:

<u>increasing real output and reducing unemployment</u>

Explanation:

The expansionary phase of the cycle is business characterized by the i<em><u>ncreasing real output and reducing unemployment.</u></em>

<em> Business cycle refers to that cycle in which there is increase and decrease or fall and rise of output of goods and services.</em>

<em> Business cycle has main four stages expansion ,peak , contraction and trough.</em>

The main cause of business cycle is the forces of supply and demand , expectation of future and it availability of the capability may also cause the business cycle.

Economic cycle is another name of Business cycle . Business cycle plays a crucial rule in the economy as it influence the demand of the consumer.

4 0
3 years ago
How aggressively should TJX expand globally, and where, and when, to maximize the value of the company shareholders?
Anni [7]
Might have to do some personal research idk who's gonna do a whole project for you but googles a wonderful thing
6 0
3 years ago
2.3 The Ledger and Posting
blsea [12.9K]

The net change in the Cash account balance from these three transactions is $30,000

What is the company's net change in cash account balance?

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net change in cash balance=$200,000-$150,000-$20,000

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8 0
2 years ago
quizlet calaf’s drillers erects and places into service an off-shore oil platform on january 1, 2021, at a cost of $10,000,000.
Nostrana [21]

quizlet calaf’s drillers erects and places into service an off-shore oil platform on january 1, 2021, at a cost of $10,000,000. calaf is legally required to dismantle and remove the platform at the end of its useful life in 10 years. calaf estimates it will cost $1,000,000 to dismantle and remove the platform at the end of its useful life in 10 years. (the fair value at january 1, 2021, of the dismantle and removal costs is $450,000.) prepare the entry to record the asset retirement obligation.

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What is  asset retirement obligation?

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Therefore,

Oil Platform 450,000

Asset Retirement Obligation 450,000

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brainly.com/question/14298631

4 0
1 year ago
Suppose that for 10 bicycles, the total fixed cost is $100 and total variable cost is $300. Then the average fixed cost and aver
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Explanation:

because 100÷10=0.1

and the total is 300$

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answer is 21

7 0
2 years ago
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