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
liubo4ka [24]
3 years ago
11

Gelb Company currently manufactures 40,000 units per year of a key component for its manufacturing process. Variable costs are $

1.95 per unit, fixed costs related to making this component are $65,000 per year, and allocated fixed costs are $58, 500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.50 per unit.
a. Calculate the total incremental cost of making 40,000 units. (Round "variable cost per unit" answer to 2 decimal places.)

b. Calculate the total incremental cost of buying 40,000 units. (Round "Purchase price per unit" answer to 2 decimal places.)
Business
1 answer:
pogonyaev3 years ago
8 0

Answer:

a. $143,000

b. $140,000

Explanation:

The computation is shown below:

a. For making 40,000 units

Particulars Relevant Amount per Unit Relevant Fixed Costs Total Relevant Costs

Variable cost per unit $1.95                                              $78,000

Fixed manufacturing costs                   $65,000             $65,000

Total incremental cost to make                                                     $143,000

The $78,000 is come from

= $1.95 × 40,000 units

= $78,000

b. And, for buying 40,000 units

Particulars  Relevant Amount per Unit Relevant Fixed Costs Total Relevant Costs

Purchase price per unit   $3.50                                             $140,000

The $140,000 is come from

= $3.50 × 40,000 units

= $140,000

You might be interested in
How does corruption limit investment and economic growth? Instructions: In order to receive full credit, you must make a selecti
docker41 [41]

Answer:

Correct option are (1) and (3).

Tax revenues are often diverted to those in power instead of going into legitimate productive investment, and the same is sometimes true of foreign aid money from abroad.

Knowing that payments of graft must be made prevents many people from undertaking actions that might lead to growth.

Explanation:

In a corrupt economy, government incomes from charge and outside guide frequently are occupied to politically influential individuals as opposed to being contributed for gainful purposes. Since individuals realize that defilement cash needs to paid to concerned authorities, they don't attempt such profitable venture either. Both these variables identified with defilement limits speculation and development.

6 0
3 years ago
Suppose the economy is operating at a point where output is less than the natural level of output. Which of the following statem
laiz [17]

Answer: a) the price level is less than the expected price level.

Explanation:

When the actual output in an economy is lower then the natural output it is called a Contractionary Gap and the price level will be lower.

This is because the Short Run Aggregate Supply Curve and the Demand curve will intersect at a lesser quantity which will equate to a lower price as well because the economy is producing less and the people are demanding less as well so the point at which they meet will be a lesser price.

3 0
3 years ago
Mr. Alex is the marketing manager of the company and he wants to implement a new way to promote the products in the market but h
SCORPION-xisa [38]

Answer: Planning reduces creativity

Explanation:

Under Planning reduces creativity, all team menbers are instructed or directed to work within the frame given by the management to them, working outside the frame of what was issued would go against the directives of the organization. This type of limitation of planning limits creativity, because members won't be able to introduce ideas to advance the growth of the team.

7 0
3 years ago
Ten reasons why we need to have laws for business's
Anika [276]
1. To define unacceptable behavior.
2. To provide certainty & stability.
3. To protect the public.
4. To provide mechanism for businesses to resolve disputes.
5. Law gives everyone a framework for how to ace and operate.
6. To make better decisions.
7. To sue & be sued.
8. To balance harm done by the offender against the individual and society at large.
9. To collect and generate revenue from the masses.

Just need one more sorry
8 0
3 years ago
On January 1, 2022, the Ivanhoe Company ledger shows Equipment $48,300 and Accumulated Depreciation $17,720. The depreciation re
Cerrena [4.2K]

Answer:

$13,290

Explanation:

Straight line depreciation expense = (book value of asset - salvage value ) / useful  life

Book value of the asset = $48,300 - $17,720 = $30,580

($30,580  - $4,000) / 2 = $13,290

8 0
2 years ago
Other questions:
  • Little Kona is a small coffee company that is considering entering a market dominated by Big Brew. Each company's profit depends
    12·1 answer
  • Despite zero population growth, why is the population of the United States growing?
    11·1 answer
  • Which of the following statements about adjusting entries is NOT true?
    15·1 answer
  • What is the Future of TV going to Look Like?
    13·2 answers
  • Many companies are allowing employees to set their own work hours. For example, a company may require its employees to work 8 ho
    13·1 answer
  • The map above shows air release, or emissions, sites across the United States. These sites include locations such as smokestacks
    11·1 answer
  • An income statement shows the
    13·1 answer
  • A travel company sells tours in Costa Rica on its website. Instead of designing the website themselves, the company hired an out
    5·1 answer
  • Supervisors can more easily manage employees' motivation than they can their ability or the environment.
    5·1 answer
  • Ski ABC Company manufactured too many ski jackets, overestimating the quantity retailers would purchase. So Ski ABC has offered
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!