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
Natasha2012 [34]
3 years ago
14

Riggs Company purchases sails and produces sailboats. It currently produces 1,200 sailboats per year, operating at normal capaci

ty, which is about 80 % of full capacity. Riggs purchases sails at $ 250 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $ 100 for direct materials, $ 80 for direct labor, and $ 90 for overhead. The $ 90 overhead includes $ 78,000 of annual fixed overhead that is allocated using normal capacity.
The president of Riggs has come to you for advice. "It would cost me $ 270 to make the sails," she says, "but only $ 250 to buy them. Should I continue buying them, or have I missed something?"
Business
1 answer:
faltersainse [42]3 years ago
8 0

Answer:

It is more convenient to produce the sails in house.

Explanation:

Giving the following information:

Riggs purchases sails at $ 250 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $ 100 for direct materials, $ 80 for direct labor, and $ 90 for overhead. The $ 90 overhead includes $ 78,000 of annual fixed overhead that is allocated using normal capacity.

Because there will not be an increase in fixed costs, we will not have them into account.

Variable overhead= 90 - (78,000/1,200)= 25

Unitary variable cost= 100 + 80 + 25= 205

It is more convenient to produce the sails in house.

You might be interested in
tổng giám đốc của một doanh nghiệp sản xuất so sánh lợi nhuận của doanh nghiệp trươc và sau thời điểm đầu tư một dây chuyền sản
Nikitich [7]

Answer:

https://dangcongsan.vn/bao-ve-nen-tang-tu-tuong-cua-dang/quan-he-san-xuat-cua-chu-nghia-tu-ban-duong-dai-nhung-gioi-han-khong-the-vuot-qua-589669.html

8 0
2 years ago
When labor unions successfully bargain for wage rates that are _____ the equilibrium wage rate, they may cause _____. higher tha
Delicious77 [7]

Answer:

When labor unions successfully bargain for wage rates that are HIGHER THAN the equilibrium wage rate, they may cause AN INCREASE IN STRUCTURAL UNEMPLOYMENT.

Explanation:

When a labor union bargains for wages that are above equilibrium rate, this will produce the same effect as a price floor. The supply of labor will increase, while the demand for labor will decrease. This deadweight loss generated by high wages will result in an excess supply that will eventually lead to higher structural unemployment.

3 0
2 years ago
According to the text, thinking about your "academic anatomy" preference is a way to:
Mila [183]
Here is the answer that best completes the statement above. According to the given text, when you are thinking about your "academic anatomy", this preference is a way to get a handle on what you feel satisfying and fulfilling. Hope this helps.
3 0
3 years ago
Michelle owns a rental property in San Diego that she has rented to Luis for four years. The street on which the house is locate
ivolga24 [154]

Michelle must give Luis a sixty-day written notice of the lease termination because he has lived in the property for more than one year.

Explanation:

The landlord must send a 30-day notice of termination in writing with the occupant at the cost of his will, unless the owner stays in the house for more than one year, which includes a notice of 60 days.

The 60 Days Lease Termination Letter is an appointment for a residential property owner to use when he wishes to vacate a tenant for at least a year or more after residing in the house.

In California, a landlord can terminate a rental after a tenant has spent a year or more on the property and has provided the tenant with a notice of sixty days.

8 0
2 years ago
Which protects a peaceful political organization from having to report its membership to the government?
tigry1 [53]
<span>Right of association-Gradpoint</span>
3 0
3 years ago
Read 2 more answers
Other questions:
  • In its proposed 2022 income statement, Hrabik Corporation reports income before income taxes $500,000, income taxes $100,000 (no
    8·1 answer
  • Growers Mart buys one hundred cases of berries from Hilltop Farms. The parties agree that the berries will be transported "F.O.B
    10·1 answer
  • Which is the best option for someone who wants to improve his or her credit and pay less interest on the debt? $15 a month becau
    5·2 answers
  • Which of the following is representative of safeguarding​ assets?
    10·2 answers
  • A statement of cash flows ...
    7·1 answer
  • Demand is said to be inelastic if a. buyers respond substantially to changes in the price of the good. b. demand shifts only sli
    14·1 answer
  • AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and
    8·1 answer
  • Pam and Ralph work at a factory with a labor union. Pam and Ralph may have to
    14·2 answers
  • the direct write-off method is used for tax purposes but is generally not permitted for financial reporting. true or false?
    13·1 answer
  • How did the population and economic patterns of the american west change because of governmental policies, such as the homestead
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!