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Alexxx [7]
3 years ago
13

Quirch Inc. manufactures machine parts for aircraft engines. The CEO, Chucky Valters, was considering an offer from a subcontrac

tor who would provide 2,400 units of product PQ107 for Valters for a price of $150,000. If Quirch does not purchase these parts from the subcontractor it must produce them in-house with the following costs:
Cost per Unit:

DM 31

DL 18

Variable Overhead 9
Business
1 answer:
Brilliant_brown [7]3 years ago
8 0

Answer:

Supplier's quotation (2,400 x $6.25)                     150,000

Less: Relevant cost of production:

Direct material (2,400 x $31)                 74,400

Direct labour (2,400 x $18)                    43,200

Variable overhead (2,400 x $9)             <u>21,600</u>       <u>139,200</u>

Savings                                                                       <u> 10,800</u>

The parts should be produced in-house since the relevant cost of production is lower than supplier's quotation.

 Explanation:

In this case, we need to compare supplier's quotation to the relevant cost of production. The price of $6.25 above was computed by dividing the total price charged by the supplier by the number of parts. Moreso, the relevant cost of production is obtained by the aggregate of direct material, direct labour and variable overhead.

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The partnership of Anderson, Berry, Hammond, and Winwood is being liquidated. It currently holds cash of $20,000 but no other as
Rashid [163]

Answer:

a. Contribution from Berry = $6,000

b-1. Contribution from Hammond = $22,556

b-2. Disbursement shall be:

Anderson = $8,889

Berry = $3,667

c. Amount to be received by Anderson on Liquidation = $11,500

Explanation:

As for the provided information we have,

Capital balances

Anderson     40%       $20,000

Berry             30%      $12,000

Hammond     20%      $17,000 (Deficit)

Winwood       10%       $25,000 (Deficit)

a. Total deficit in this case will be = Share of Hammond + Winwood = $17,000 + $25,000 = $42,000

Berry's share = \frac{30}{30+40} \times 42,000 = 18,000

Since Berry's current balance = $12,000

Contribution required = $18,000 - $12,000 = $6,000

b-1. Total deficit of Winwood = $25,000

Hammond share = \frac{20}{20+30+40} \times 25,000 = 5,556

Hammond's current balance = - $17,000

Thus, contribution from Hammond = $5,556 + $17,000 = $22,556

b-2. Total deficit balance = $17,000 + $25,000 = $42,000

Total sufficient balance = $20,000 + $12,000 = $32,000

Net deficit balance = $42,000 - $32,000 = $10,000

Anderson share in Deficit of Winwood = 25,000 \times \frac{40}{40 + 30 +20} = 11,111

Thus, net capital of Anderson = $20,000 - $11,111 = $8,889

Berry's share in deficit of Winwood = 25,000 \times \frac{30}{40+30+20} = 8,333

Thus, net capital from Berry = $12,000 - $8,333 = $3,667

c. Total deficit from Hammond = $17,000

Anderson share = 17,000 \times \frac{40}{40+30+10} = 8,500

Anderson's current balance = $20,000

Amount extra contributed by Anderson = $20,000 - $8,500 = $11,500

Thus, Anderson will receive $11,500 on liquidation.

Final Answer

a. Contribution from Berry = $6,000

b-1. Contribution from Hammond = $22,556

b-2. Disbursement shall be:

Anderson = $8,889

Berry = $3,667

c. Amount to be received by Anderson on Liquidation = $11,500

3 0
3 years ago
Zen Electronics has taken a penetration pricing approach to launch its new line of mobiles. Therefore, Zen is most likely to ___
Serjik [45]

Answer:

initially charge a relatively low price per product

Explanation:

A penetration pricing approach is a strategy in which an organization establishes a low price for a new product at the beginning to attract customers and then, the price is raised. According to this, the answer is that Zen is most likely to initially charge a relatively low price per product.

6 0
3 years ago
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Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The payoff matrix that follows shows the profit (
Vladimir [108]

Answer:

Flashfone and Pictech

The Nash equilibrium is achieved when Pictech and Flashfone price their smartphones high without the other party changing their strategy.  

Explanation:

a) Data and Calculations:

                                Pictech  

                          High         Low

             High     8   8        3  10

Flashfone

             Low    10   3        5   5

b) By acting at the Nash equilibrium and pricing their smartphones high, Pictech and Flashfone achieve a payoff of $8 million respectively.  This payoff level does not put any of the two firms at a disadvantage.

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2 years ago
Nieto Company’s budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January $26
vova2212 [387]

Answer:

dang bro

Explanation:

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3 years ago
The following statement describes which of the following theories? _________ is a theory of management that analyzes and synthes
Angelina_Jolie [31]

Answer:

The answer is: Taylorism

Explanation:

Frederick Winslow Taylor and Henry Fayol are considered the "fathers" of management theory, but had opposing views on how businesses should work and be organized. Taylor was responsible for developing the Scientific Management theory (Taylorism) and led the Efficiency Movement.

He was obsessed with increasing labor productivity. Most of his theories are considered archaic now, but he was the first man to really try to understand this concept. Most of his ideas still serve as a basis for modern management and some companies like McDonald's still follow several of his basic concepts like work specialization.  

4 0
3 years ago
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