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julsineya [31]
3 years ago
14

Wilson Corporation produces a large number of fishing products. The costs per unit of a particular fishing reel are as follows.

Direct materials and direct labor $ 10 Variable factory overhead 6 Fixed factory overhead 4 The company recently decided to buy 10,000 fishing reels from another manufacturer for $18 per unit because "it was cheaper than our cost of $20 per unit." Is the decision made by Wilson's management correct or not? Correct Incorrect
Business
1 answer:
vlada-n [284]3 years ago
3 0

Answer:

The decision is incorrect. It is cheaper to make in house.

Explanation:

Giving the following information:

Make in house:

Direct materials and direct labor 10

Variable factory overhead 6

Fixed factory overhead 4

The company recently decided to buy 10,000 fishing reels from another manufacturer for $18

We need to  calculate the unitary variable cost of production. Fixed costs are unavoidable, therefore they shouldn't be taken into account.

Variable cost= direct material + direct labor + variable overhead

Variable cost= 10 + 6= $16

The decision is incorrect. It is cheaper to make in house.

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Task 3: Budget for 25- to 30-year-old Business Professionals
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Answer:

Sample Budget

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Explanation:

The mid aged person who is age of 25 to 30 will have different expenses. He will have to budget his monthly income and routine expenses to identify the savings. The sample budget will include different types of household expenses that a person incurs to live. He might have to budget one off expenses such as party cost, gifts etc. He will have to keep track of groceries and food expenses.

3 0
4 years ago
Harley signs a check payable to Pro Accountants, P.C., and gives it to Pro, leaving the amount blank but authorizing the firm to
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Answer:

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Explanation:

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Answer:

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7 0
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