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Anton [14]
3 years ago
5

Sunland Company incurs the following costs to produce 11400 units of a subcomponent: Direct materials $9576 Direct labor 12882 V

ariable overhead 14364 Fixed overhead 16200 An outside supplier has offered to sell Sunland the subcomponent for $2.85 a unit. If Sunland accepts the offer, by how much will net income increase (decrease)?
Business
1 answer:
anygoal [31]3 years ago
8 0

Answer:

$4,392

Explanation:

Sunland Company

Therefore the costs are eliminated if they outsource the manufacturing:

Direct materials $9,576

Direct labor $12,882

Variable overhead $14,364

Total $36,882

Their new cost is ($2.85 X 11,400) $32,490

$36,882 - $32,490 = $4,392

If Sunland accepts the offer the net income increase (decrease) by $4,392

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How do you account for financial losses in order to maintain quality customer service, for example, a restaurant that gives a fr
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3 years ago
The Simon Company (SIMON) currently has $300,000 market value (and book value) of perpetual debt outstanding carrying a coupon r
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Answer:

The answer is "4,750"

Explanation:

They have indeed been given the information that we require.

The current market cap for Simon Company (SIMON) is $300,000.

rate= 6%

EBIT=$150,000

The business has no plans to expand.

The current cost of capital is 8.8%,

The tax rate is 40%.

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