1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
zhannawk [14.2K]
3 years ago
15

XYZ Company makes 400 widgets. The variable costs are $35.60 per unit and fixed costs are $30.00 per unit; however, $21.40 in fi

xed costs per unit is unavoidable. What is the effect on net income if the company instead buys the widgets from an outside supplier for $44.00 per unit?
Business
1 answer:
Anuta_ua [19.1K]3 years ago
3 0

Answer:

increase in income  of $80

Explanation:

Prepare an Analysis of Costs and Savings if the Company buys from Outside Supplier.

Note : The  fixed costs per unit at are unavoidable are irrelevant and disregarded in this decision.

<u>Analysis of Costs and Savings</u>

Purchase Price (400 widgets × $44.00)  =    ($17,600)

Savings :

Variable Costs ($35.60 × 400 widgets)   =     $14,240

Fixed Cost ( $8.60 × 400 widgets)           =      $3,440

Net Income effect                                      =           $80

Conclusion :

The effect on net income if the company instead buys the widgets is an increase in  income  of $80

You might be interested in
Stock Y has a beta of 1.59 and an expected return of 25%. Stock Z has a beta of 0.44 and an expected return of 12%. If the risk
muminat

Answer:35%

Explanation:

7 0
3 years ago
Generally, when business startup costs exceed the maximum amount allowed, the remaining costs may be amortized over_____ months.
irina1246 [14]

Answer:

The correct answer is letter "B": 180.

Explanation:

During the first year a business operates, companies can elect to deduct up to $5,000 from their costs. If the costs are higher than $50,000, the deduction of $5,000 will be reduced by the exceeding amount. However, that exceeding amount can be amortized for up to 15 years (180 months).

8 0
3 years ago
In Ben v. City Car Dealership, a state supreme court held that a minor could cancel a contract for the sale of a car. Now a tria
Neporo4naja [7]

Answer:

The correct answer is D

Explanation:

Under the doctrine of the stare decisis, the court will look into the past or the similar issues in order to guide their decisions related to the issues. And the past decisions are referred or acknowledged as the precedent.

Precedent is the principle or rule which is legal and it is established or created by the decision of the court. And this decision become the authority or the example for judging or deciding the similar issues.

Therefore, in this case, the trial court when deciding upon the case of D v E, will likely to allow or permit the minor to cancel the contract or the agreement.

7 0
3 years ago
The selection of an appropriate inventory cost flow assumption for an individual company is made by
Butoxors [25]

Answer: Management

Explanation:

The management is one of the type of organization that manage the various types of business activities for the purpose of achieving the goals and the following are some main function of the management are as follows:  

  • Controlling the system
  • Planning the overall function
  • Organizing

 According to the given question, the selection of the inventory cost flow in the system by the company then it is known as the management as it handles all the inventory business of the various types of products and the services in the management.

  Therefore, Management is the correct answer.  

3 0
3 years ago
If the Federal Reserve is late to recognize a recession and implements an expansionary policy too​ late, the result could be an
kherson [118]

Answer:

A. Procyclical policy.

Explanation:

Procyclical policy is basically is a government approach to increase goverment spending and reduces taxes while government is going through economic expansion.

4 0
3 years ago
Other questions:
  • The company has a target capital structure of 40% debt and 60% equity. Bonds pay 10% coupon (semi-annual payout), mature in 20 y
    11·1 answer
  • If the nominal exchange rate (expressed as foreign currency per unit of the domestic currency) rises 5%, domestic inflation is 2
    10·1 answer
  • "tom is employed by acme industries and is covered by its group long-term disability plan. the company pays 80 percent of the pr
    8·1 answer
  • According to the text, several new technologies are expected to have dramatic impacts on marketing. Among those cited are
    15·1 answer
  • One potential drawback of just-in-time (jit) production is that
    13·1 answer
  • In ascertaining whether a borrower has the ability to pay off his loan over time, a mortgage bank may rely on calculating a tota
    7·1 answer
  • You would use scenario analysis when:________.
    14·1 answer
  • make your own meme for points! But I swear if there is no good memes brainly sucks now because their used to be amaaaaaaaaaazing
    15·2 answers
  • At present, the gap between those employees who say they want unions and those that have union representation in the private sec
    15·1 answer
  • You discover an unattended email address or fax machine in your office receiving beneficiary appeals requests. You suspect no on
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!