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murzikaleks [220]
3 years ago
5

Laskowski Company manufactures a part for its production cycle. The annual costs per unit for 5,000 units of the part are as fol

lows:
Per Unit

Direct materials $3.00
Direct labor 5.00
Variable factory overhead 4.00
Fixed factory overhead 2.00
Total costs $14.00

The fixed factory overhead costs are unavoidable. Hendricks Company has offered to sell 5,000 units of the same part to Laskowski Company for $14 per unit. The facilities currently used for the part could be used to make 5,000 units annually of a new product that would contribute $5 a unit to fixed expenses. No additional fixed costs would be incurred with the new product. Laskowski Company should ________.

A) make the part to save $5,000
B) make the part to save $15,000
C) make the new product and buy the part to save $5,000
D) make the new product and buy the part to save $15,000​​​​​​​ (this is the correct answer, please explain why)
Business
1 answer:
kaheart [24]3 years ago
4 0

Answer:

D) make the new product and buy the part to save $15,000​​​​​​​

Explanation:

Total Cost to Make a Product = Cost per unit * units = 14*5,000 =70,000

Relevant cost to Buy the Product

= Cost to purchase per Unit + Fixed Overhead Per Unit - Contribution Per Unit From New Product

= $14+2 -5 = 11.00 Per Unit

Cost to Buy = 11,,00*5000 =55,000

Net Advantage to Buy = 70,000-55000 = $15,000

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At Infosoft Solutions, employees are encouraged to take care of their problems by working with one another and with customers, u
likoan [24]

Answer: Decentralized

Explanation: In a decentralized organisation, the seniors in the organisation transfers the authority and responsibility to their subordinates.

This is done by the seniors with the objective of effective running of operations within. The employees in such organisations usually remain more motivated than others.

In the given case, Infososft is encouraging their employees to take their own decisions while dealing with customers. Hence the transfer of authority for decision making is evident.

From the above we can conclude that the correct option is A.

6 0
3 years ago
Susan seller gave her agent a 60 days listing to sell her home for $200,000. the seller specified in the exclusions section of t
Kaylis [27]

Answer:

B) $647.47

Explanation:

The initial closing date was set for May 1st, but due to a problem with the buyer, it was moved to May 10th but that date was accepted by the seller. This means that the buyer should be responsible for the property taxes starting May 10th.

Property taxes per day = $1,832 / 365 days = $5.02 per day

Susan is responsible for paying 31 days in January, 28 days in February, 31 days in March, 30 days in April, and 9 days in May = 129 days x $5.02 = $647.47

The buyer is responsible for $1,184.53 in property taxes.

3 0
3 years ago
The Tingey Company has 500 obsolete microcomputers that are carried in inventory at a total cost of $720,000. If these microcomp
GrogVix [38]

Answer: $720000

Explanation:

Sunk cos simply refers to a coat which a company has already incurred and can't be recovered. They're not relevant to future decisions if the company has they already happened in the past.

In this case, the sink cost will be $720,000 which is the total cost of the obsolete microcomputers, Other coat such as $100,000, $160,000, and $50,000 are relevant cost.

6 0
3 years ago
A fixed asset with a five-year estimated useful life and no scrap value is sold at the end of the second year of its useful life
Agata [3.3K]

Answer:

Using straight line method over Double-declining balance method chances of loss or reduction in gain increases.  

Explanation:

When we use straight line method it gives constant value that decrease the book value of plant assets while using double-declining balance method is reduce book value more aggressively in earlier years. Therefore, Book value of asset is much higher compare to double declining balance method hence, chances of loss or reduction in gain are obvious when we use the straight line method.

7 0
3 years ago
Read 2 more answers
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Galina-37 [17]
C. Sherbet.

The citrus's <span>acidic sweetness to clear the taste buds.</span>
3 0
3 years ago
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