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Semenov [28]
3 years ago
8

The SP Corporation makes 40,000 motors to be used in the production of its sewing machines. The average cost per motor at this l

evel of activity is:
Direct materials $ 9.90
Direct labor $ 8.90
Variable manufacturing overhead $ 3.65
Fixed manufacturing overhead $ 4.60
An outside supplier recently began producing a comparable motor that could be used in the sewing machine. The price offered to SP Corporation for this motor is $25.15. If SP Corporation decides not to make the motors, there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. Direct labor is a variable cost in this company. The annual financial advantage (disadvantage) for the company as a result of making the motors rather than buying them from the outside supplier would be:

Multiple Choice

($76,000)

$254,000

108,000

$184,000
Business
1 answer:
Yuri [45]3 years ago
5 0

Answer:

c) 108,000 dollars

Explanation:

Buy option:

Purchase:        40,000 motors at 25.15 = 1,006,000

unavoidable fixed cost: 40,000 x 4.60 =    184,000

                                                               1,190,000.00

Produce option:

Manufacturing Cost (9.9 + 8.9 + 3.65) x 40,000 = 898,000.00

Fixed cost:                                                                  184,000.00

Total Cost                                                          1,082,000.00

Differential:  1,190,000 - 1,082,000.00 = 108,000.00

It is advantageous to continue the production as the unavoidable cost will make the buy option a worse deal

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alex41 [277]

The goal that can be associated with persuasive presentation strategy is be able to change the prospect's beliefs as well as attitudes of buyer action.

  • Persuasive presentation strategy can be regarded as strategy use to make more sales.

  • This strategy is used in influencing the potential buyers so they can make purchase, it encourages them and change their beliefs.

Therefore, persuasive presentation strategy is the correct term.

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7 0
2 years ago
Happy​ Valley, Inc. has received an invoice for​ $6,500 with terms of​ 3/15, n/45 and uses the net method to record purchases. I
Strike441 [17]

Answer:

$6,500

Explanation:

In these cases, the fraction 3/15 represents that 3% discount will be offered on payment if the payment is made within 15 days.

The fraction n/45 represents the total credit period allowed for this purchase is 45 days.

So if a person makes the payment beyond 15 days there will be no discount offered and accordingly, the purchase price will be paid.

Here, Happy Valley also paid after 15 days, that is on 17th day. Thus, net purchase will be $6,500 and no discount shall be recorded on such payment, or recording the purchase value.

4 0
3 years ago
If an importer has a good reputation regarding its following of Customs regulations, the likelihood that one of its shipments is
Lena [83]

Answer:

E) None of the above

Explanation:

  • The infirmed compliance includes educating the importers on the methods of the classification and assessment of the values to the merchandise and ensuring the familiarity with the laws and regulations of the customs agency.
  • Thus the importers need to develop a good reputation when dealing with the clients and follow the customer's regulations and thus minimizing the delay time and ensuring the supply chain quality service.
8 0
3 years ago
Which of the following best describes an economic system?
stepladder [879]

Answer:Beans

Explanation: Open the can of beans and bean them.

3 0
3 years ago
Celestin Manufacturing Company incurred $5,000 of depreciation on its manufacturing equipment during its first year of operation
KengaRu [80]

Answer:

A. $5,000 of depreciation expense on its income statement.

Explanation:

Assuming the company uses straight line method of depreciation, then cost of depreciation is $5,000 each year.

Now, under the income statement as per GAAP, the cost of goods sold only includes the direct cost associated with manufacturing the product.

It does not included fixed cost like depreciation.

As the depreciation is fixed and does not depend on number of units produced and sold, the depreciation to be charged in income statement = $5,000.

Therefore, the correct option is

A. $5,000 of depreciation expense on its income statement.

3 0
3 years ago
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