An amount of $24 per unit will need to be charged by the outside supplier to make Tide be indifferent between making or buying the subcomponent.
Relevant cost per unit to make = (Direct materials + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead) / Total sub-component unit
Relevant cost per unit to make = ($250,000 + $200,000 + $190,000 + $80,000) / 30,000 units
Relevant cost per unit to make = $24
Hence, the indifferent price is $24 per unit
Therefore, an amount of $24 per unit will need to be charged by the outside supplier to make Tide be indifferent between making or buying the sub-component.
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Answer:
c. decrease by $10,000 per year.
Explanation:
The contributing margin of a business is sales revenue less the variable cost to produce the product
Contributing margin refers to the profit that is free to be used by the business to pay fixed costs and reserve as net profit.
In this scenario if the department is discounted the fixed expense will reduce by $40,000
This implies that the net income will increase by $40,000 if the department is discontinued.
If the department is discontinued income from the department will reduce by $50,000. That is -$50,000
Net income= -50,000 + 40,000= -$10,000
Answer:
January 2, 2020
Dr Accounts receivable 410,000
Cr Sales revenue 370,000
Cr Unearned revenue 40,000
Dr Cost of goods sold 300,000
Cr Merchandise inventory 300,000
Accrual accounting states that revenues must be recognized during the periods that they actually occur (i.e. the earning process is completed). Since the installation process lasts 6 months, the unearned revenue will be recognized as the process is being completed.
Answer: A. you always cite the last name first then the first name.
Explanation:
The correct answer is B. false.
If something is good, then there is no need to change it if there are no problems at all. If this company is making a profit because of a venture they invested in, then why would they seek alternative ventures and risk losing the profit they gained.
