1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kupik [55]
3 years ago
15

Harrison Enterprises currently produces 8,000 units of part B13. Current unit costs for part B13 are as follows: Direct material

s $12 Direct labor 9 Factory rent 7 Administrative costs 10 General factory overhead (allocated) 7 Total $45 If Harrison decides to buy part B13, 50% of the administrative costs would be avoided. All of the company’s items, including part B13, are manufactured in the same rented production facility. The company has an offer from a wholesaler that wishes to sell the part to Harrison for $31 per unit. What will occur if the company accepts the offer?
Business
1 answer:
Yakvenalex [24]3 years ago
3 0

Answer:

It is cheaper to make the part in house.

Explanation:

Giving the following information:

Harrison Enterprises currently produces 8,000 units of part B13.

Current unit costs for part B13 are as follows:

Direct materials $12

Direct labor 9

Factory rent 7

Administrative costs 10

General factory overhead (allocated) 7

Total $45

If Harrison decides to buy part B13, 50% of the administrative costs would be avoided.

To calculate whether it is better to make the par in-house or buy, we need to determine which costs are unavoidable.

Unavoidable costs:

Factory rent= 7

Administrative costs= 5

General factory overhead= 7

Total= 17

Now, we can calculate the unitary cost of making the product in-house:

Unitary cost= direct material + direct labor + avoidable administrative costs

Unitary cost= 7 + 5 + 5= $17

It is cheaper to make the part in house.

You might be interested in
Please help. I will mark you as brainliest !!!
OLga [1]
Hey hhufghjoofffghggh
8 0
2 years ago
Read 2 more answers
Which type of money does the diagram best describe?
loris [4]

Answer: Commodity

Explanation: I believe this is the answer because Commodity money actually presents value because it can be valuable in different ways such as gold and silver.

8 0
3 years ago
Sarkis is a sales manager for the bratney companies, a company that manufactures equipment used in the processing of grains and
pentagon [3]
The decision is made under the condition of Uncertainty, Because T<span>he goal is clear, but there is no clear solution to the problem
The condition of uncertainty occurs when the managers are required to take a certain decision which outcome couldn't be predicted by the Organization.
To handle this type of situation, the managers must willing to take the chance of failure that could damage the organization while providing the organization to advance at the same time.</span>
6 0
3 years ago
Indicate with the appropriate letter the nature of each adjustment described below: Type of Adjustment A. Change in accounting p
julia-pushkina [17]

Answer:

A. Change in accounting principle (reported retrospectively) - PR

B. Change in accounting principle (exception reported prospectively) - PP

C. Change in estimate - E

D. Change in estimate resulting from a change in accounting principle - EP

E. Change in reporting entity - R

F. Correction of an error - N

4 0
3 years ago
Classify each of the following based on the macroeconomic definitions of saving and investment:1. Saving Investment Kyoko borrow
r-ruslan [8.4K]

Answer

The classification is shown below:

Explanation:

The saving refers to the amount i.e above its consumption expenditure let us take an example if an individual salary is $100,000 and its expenditure assumes $50,000 then it saves $50,000 so the $50,000 is the savings.  While the investment is the amount that is spent to buy some assets in terms of building, machinery, home, etc.

So the classification is presented below:

a. Kyoko borrows money to build a new lab for her engineering firm.  = Investment

b. Rina purchases stock in Nano Speck, a biotech firm.  = saving

c. Musashi takes out a mortgage for a new home in Detroit. = investment

d.Jacques purchases a corporate bond issued by a car company. = saving

6 0
3 years ago
Other questions:
  • A rights offering that gives existing target shareholders the right to buy shares in either the target or an acquirer at a deepl
    15·1 answer
  • Regardless of how well or poorly a franchise business is doing, franchisees must give the franchiser a monthly
    13·1 answer
  • Your son, Jason, left his skateboard at the bottom of your basement stairs. While going downstairs, you stepped on the skateboar
    11·1 answer
  • Problem 1: On April 01, 2016 Anees started business with Rs. 100,000 and other transactions for the month are: 2. Purchase Furni
    15·1 answer
  • A company acquires a 25% investment in another corporation. The reporting of this investment depends primarily onThe percentage
    14·1 answer
  • What causes the Tragedy of the Commons? a. Social and private incentives differ, and common resources are not rival in consumpti
    5·1 answer
  • The minimum selling price that should be acceptable in a special order situation is equal to total Select one: a. production cos
    10·1 answer
  • Evaluate the importance of doha development round?
    5·1 answer
  • To evaluate _____, a systems analyst needs information about projected future volume for all outputs, inputs, and processes.
    10·1 answer
  • if a firm is operating at the point of tangency between an isoquant and an isocost line, its production is:
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!