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Tems11 [23]
3 years ago
8

Waterway Industries incurs the following costs to produce 11800 units of a subcomponent: Direct materials $9912 Direct labor 133

34 Variable overhead 14868 Fixed overhead 16200 An outside supplier has offered to sell Waterway the subcomponent for $2.85 a unit. If Waterway accepts the offer, by how much will net income increase (decrease)?
Business
1 answer:
Alex Ar [27]3 years ago
4 0

Answer:

If the company buys the subcomponent, the company will save $4,484.

Explanation:

Giving the following information:

Production= 11,800 units

Direct materials= $9,912

Direct labor= $13,334

Variable overhead= $14,868

Total variable cost= $38,114

An outside supplier has offered to sell Waterway the subcomponent for $2.85 a unit.

We have no reason to believe that the fixed costs are avoidable. Therefore, they take no part in the decision making process.

Total cost of production= 38,114

Total cost of buying= 11,800*2.85= 33,630

If the company buys the subcomponent, the company will save $4,484.

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Answer:

Explanation:

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d. "not in the labor force", does not have a job and is not looking for one at the current moment in his life.

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If the demand for a product decreases, what is likely to happen?
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Wolverine Corporation plans to pay $3 dividend per share on each of its 300,000 shares next year. Wolverine anticipates earnings
lesantik [10]

Answer:

new equity  $  1,425,000

new debt     $    950,000

Explanation:

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1 = 4 + equity

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The company can riase capital expenditured for 1,625,000 and mantaining his capital structure.

As the company need 4,000,000 it will need to raise more capital as it surpass the retained earnings breakpoint.

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4 0
3 years ago
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Hoochie [10]

Answer:

Explanation:

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Now the journal entry would be

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      To Supplies A/c                            $2,950

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4 0
3 years ago
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