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REY [17]
2 years ago
15

Bronson Corporation incurs the following annual costs in producing 30,000 video cards for computers: However, if Bronson purchas

es the video cards from another company at a cost of $10 per card, what would be the increase (decrease) in net income if no fixed costs can be eliminated?
Business
1 answer:
Travka [436]2 years ago
5 0

Answer: ($60,000)

Explanation:

Fixed cost is a cost that doesn't vary alongside production level. It should be noted that the relevant cost for production will be addition of the direct materials to the direct labour and the variable maufacturing overhead. This will be:

= $60,000 + $80,000 + $100,000

= $240,000

The relevant costs that will be bought will be:

= 30,000 × $10

= $300,000

Therefore there'll be decrease in net income by:

= $300,000 - $240,000

= $60,000

The answer will be ($60,000)

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2 years ago
"The best business portfolio is the one that ________.
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The correct answer is option B,the business portfolio is the one that best fits the company's strengths and weaknesses to opportunities in the environment.

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8 0
3 years ago
A new investment opportunity for you is an annuity that pays $550 at the beginning of each year for 3 years. You could earn 5.5%
faltersainse [42]

Answer:

$1,565.48

Explanation:

This is an annuity due type of question since the recurring payments are made at the beginning of each year unlike Ordinary annuity whose payments occur at the end of each period.

With a financial calculator on beginning mode "BGN", use the following inputs to find the PV;

Total duration of investment; N = 3

Recurring payment; PMT = 550

Interest rate; I/Y = 5.5%

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6 0
3 years ago
Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 60,000 parts is $160,
Bas_tet [7]

Answer:

$55,000

Explanation:

The computation of the change in operating income is shown below:

= Buying cost - making cost

where,

Buying cost = Cost of producing parts × outside supplier per unit

                    = 60,000 parts × $3

                    = $180,000

And, the making cost would be

= Variable cost + fixed cost × given percentage

= $110,000 + $50,000 × 30%

= $110,000 + $15,000

= $125,000

So, the operating income would be

= $180,000 - $125,000

= $55,000

3 0
3 years ago
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