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Lyrx [107]
3 years ago
7

Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $13.00

per unit. The unit cost for the business to make the part is $20.00, including fixed costs, and $11.00, excluding fixed costs. If 32,404 units of the part are normally purchased during the year but could be manufactured using unused capacity, what would be the amount of differential cost increase or decrease from making the part rather than purchasing it?$226,828 cost increase$421,252 cost decrease$64,808 cost decrease$64,808 cost increase
Business
1 answer:
aleksandr82 [10.1K]3 years ago
3 0

Answer:

Cost difference= $64,808 cost decrease

Explanation:

Giving the following information:

Purchasing price= $13

Make in-house:

Variable cost per unit= $11

Fixed cost per unit= $9

Production in units= 32,404

<u>To determine whether it is more convenient to make the part in-house or buy it, we need to take into account only the variable cost per unit. We leave out of the decision the fixed costs because they remain constant in both options.</u>

Buy= 32,404*13= $421,252

Make= 32,404*11= $356,444

Cost difference= $64,808 decrease

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Answer and Explanation:

Given:

μ = 75 million

SD = 17 million

Probability (x) raw data = 110 million

Computation:

= Probability (x) < 110 million

= Probability [(x-μ) / SD] < [(110 - 75) / 17]

[(x-μ) / SD] = Z

= Probability [z] < [(35) / 17]

= Probability [z] < [2.05882353]

Using z calculator:

P-value from Z-Table:  

Z score = 0.98024

Therefore, probability is 0.98024

4 0
3 years ago
Providing an analysis for a company regarding adding a particular product line, retracting sales markets, or dealing with risks
strojnjashka [21]

Answer:

The correct answer is True.

Explanation:

The managerial accountant has to become a key pillar in the correct measurement of business performance, in the decision making of senior management and in the development of company strategies, to help it, not only to survive but to generate competitive advantages, in a globalized business world, increasingly growing and hostile.

Because, in addition to being a function of extreme importance, for any business organization, it faces tremendous challenges, such as technological changes and the intensification of international competition. Business leaders and executives are currently in the process of looking for new ways to manage and run their companies. However, it is not only the magnitude of the changes, which causes problems for organizations, but the increasing speed with which they are going.

In fact, Management Accounting systems emerged to provide information, support management and control of companies, and to promote efficiency in the organization.

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NOTE: If you need to extend the explanation given, you can make a comment or add a new question. I will be very pleased to help you.

6 0
3 years ago
A 12-year, 5% coupon bond pays interest annually. The bond has a face value of $1,000.__________ Fill in the blank, read surroun
Nata [24]

Answer:

12.38% decrease

Explanation:

Given the following parameters

6%

Number of years = 12

Market yield I= 6 === 4.5

Present Value = 916.16 == 1045.59

PMT (annuity payment) = 50 (5%x1000)

Future value = 1000

Therefore, to solve for the percentage change, we have in the price of this bond in this situation, we have (916.16-1045.59) / 1045.59 = -0.1238

Hence, 12.38% decrease is the percentage change in the price of this bond if the market yield rises to 6% from the current yield of 4.5%,

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3 years ago
What are a firms four major financial needs?
TEA [102]
Here are the four major needs:

7 0
3 years ago
At Infosoft Solutions, employees are encouraged to take care of their problems by working with one another and with customers, u
likoan [24]

Answer: Decentralized

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This is done by the seniors with the objective of effective running of operations within. The employees in such organisations usually remain more motivated than others.

In the given case, Infososft is encouraging their employees to take their own decisions while dealing with customers. Hence the transfer of authority for decision making is evident.

From the above we can conclude that the correct option is A.

6 0
3 years ago
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