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
aalyn [17]
3 years ago
10

Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 43,000 parts is $140,

000, which includes fixed costs of $68,000 and variable costs of $72,000. The company can buy the part from an outside supplier for $3.80 per unit, and avoid 30% of the fixed costs. If Blue Ridge Bicycles makes the part, how much will its operating income be?
Business
1 answer:
kifflom [539]3 years ago
8 0

Answer:

$71,000

Explanation:

The computation of operating income is shown below:-

Total costs if company bought = Cost of production × Outside supplier per unit) + (Fixed cost × Remaining percentage)

= (43,000 × $3.80) + ($68,000 × (100% - 30%))

= (43,000 × $3.80) + ($68,000 × 70%)

= $163,400 + $47,600

= $211,000

Loss in Income if part is bought = Total costs if company bought - Total costs originally

= $211,000 - $140,000

= $71,000

Therefore, Making profit will be more by $71,000 and for computing the Loss in Income if part is bought we simply applied the above formula.

You might be interested in
Both transportation and assignment problems are members of a category of lp problems called?
kogti [31]

Both transportation and assignment problems are members of a category of lp problems called network flow problems

<h3>What is  network flow problems?</h3>

Network flow problems are a type of combinatorial optimization problem in which the input is a flow network (a graph with numerical capacities on its edges) and the goal is to construct a flow with numerical values on each edge that respect the capacity constraints and have incoming flow.

A company, for example, may want to ship packages from Los Angeles to New York City by using trucks to transport between intermediate cities. If the route connecting two cities only has one truck and each truck has a maximum load, the graph describing the transportation options will be a flow network.

To know more about  network flow problems follow the link:

brainly.com/question/23828054

#SPJ4

3 0
2 years ago
You own a pet-supply store with various category pages on your website, and you've set up a tracking template so you can manage
Licemer1 [7]
Dog Snacks.
You have to use something unique and different from other pages and other keywords you have. As well as you can still Identify it as a treat!
4 0
2 years ago
The hardest part about finding work is _____.
Snezhnost [94]
Hey there,

Getting the first job would probably be the hardest. So the answer is C.

Hope this helped, have a great day :)
6 0
2 years ago
Read 2 more answers
Assume Ford Motors expects a new hybrid-engine project to produce incremental cash flows of $50 million each year, and expects t
photoshop1234 [79]

Answer:

A) $560 million

Explanation:

First lets calculate the NPV of the cash stream by this investment,

PV Cash stream = Cash flow/ (r-g), where r = avg cost of capital and g = growth of the cash stream.

PV = 50 / (0.09 - 0.04)  = $1000 million

We assume that external finance issuance costs are payable as a part of initial outlay of the project and so,

Total initial outlay = 420 + 20 = $440 million

NPV of the project then,

NPV = 1000 - 440 = $560 million

Hope that helps.

8 0
3 years ago
What is meant by market in the lower-of-cost-or-market rule?
Pavel [41]

Answer:

Stock is valued at lower of : cost or market price [prudence principle]

Explanation :

Prudence or Conservatism is an accounting principle : anticipating for all possible losses & expenditures, not anticipating for possible profits & gains. This makes business better prepared to face all contingent expenditures/ losses.

This concept's implication is that : Stock or Inventory is valued at the value whichever is lesser between 'cost of inventory' & sale price. This makes inventory valuation as per the above explained Prudence/ Conservatism principle.

7 0
3 years ago
Other questions:
  • Key numbers that financial managers use to calculate ratios usually come from the firm’s
    12·1 answer
  • Before giving you a loan or credit, lending institutions may want to know more about you to help determine whether you are a goo
    7·2 answers
  • Charmingbells inc. has been running into a loss gradually, but the board of directors are reluctant to shut the company down bec
    7·2 answers
  • Seventeen years ago, Susan designed a corrugated steel culvert for a rural road. Her work was accepted and paid for by the count
    12·1 answer
  • Arm &amp; Hammer launches a campaign to extend the life of its baking soda products through improved packaging and new uses in p
    15·1 answer
  • On January 1, Power House Co. prepaid the annual rent of $10,140. Prepare the journal entry to record this transaction.
    13·1 answer
  • The ____________________ prescribes that an accounting information system have internal controls, meaning, it employs methods an
    12·2 answers
  • Smith has applied overhead of $73,000 and actual overhead of $87,600 for the month of November. It applies overhead based on dir
    5·1 answer
  • What are chemical contaminants
    9·1 answer
  • Kirby subscribed to purchase 100 shares of stock to be issued by Globule, Inc., an already existing corporation. Globule accepte
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!