Answer:
Sell before assembly, The company will be better off by $4 Per Unit
Explanation:
Calculation to determine what decision should Vaughn make
PROFIT BEFORE ASSEMBLY
Profit = Sale price - Cost price
Profit= $51 - $24
Profit= $27 Per Unit
PROFIT AFTER ASSEMBLY
First step is calculate the Cost of Assembled Product
Cost of Assembled Product =$24 + $14
Cost of Assembled Product= $38 Per Unit
Now let determine the profit
Profit = Sale price - Cost price
Profit= $61 - $38
Profit = $23 Per Unit
Now let Determine what decision should Vaughn make
Hence, the Profit by selling assembled product is LOWER than selling the Unassembled product by :
$27 Per Unit - $23 Per Unit
= $4 Per Unit
Therefore the decision that Vaughn should make is: Sell before assembly, The company will be better off by $4 Per Unit
Answer:
China exports a lot of cars, but the reason it is a major part of the auto industry is because it exports a lot of parts.
Explanation:
This one
Answer:
$475,000
Explanation:
Direct materials (M) = $10 per unit
Direct labor (L) = $20 per unit
Manufacturing overhead (O) = 80% of L = 0.8 *$20 =$16 per unit
Selling Price (S) = $65 per unit
Units sold (N) = 25,000 units
The budgeted gross profit for 25,000 units is:
The budgetd gross profit for Goody Company is $475,000
