Answer:
Incremental cost= $61,875
Explanation:
Giving the following information:
Gelb Company currently manufactures 49,500 units per year of a key component for its manufacturing process. Variable costs are $5.15 per unit, fixed costs related to making this component are $75,000 per year, and allocated fixed costs are $70,500 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 $3.90 per unit
We need to determine whether it is more convenient to produce the component or outsource it. We will only consider the relevant costs, therefore the fixed costs will not be taken into account.
Make in house:
Cost= 49,500*5.15= $254,925
Buy:
Cost= 49,500*3.90= $193,050
Incremental cost= 254,925 - 193,050= $61,875
The maximum daily profit for the company is $860
<h3>
What is an inequality</h3>
Inequality is an expression that shows the non equal comparison of two or more variables and numbers.
Let x represent the number of bed and y represent the number of pillow, hence:
4x + 2y ≤ 40 (1)
Also:
2x + 4y ≤ 32 (2)
From the graph, the solution is at:
(8, 4)
Profit = 80x + 55y = 80(8) + 55(4) = $860
The maximum daily profit for the company is $860
Find out more on inequality at: brainly.com/question/24372553
Brokerage firms make their profits primarily in : D. Fees commissions on sales or transfers
to put it simply, A brokerage firm is a financial institution that facilitates the selling process of stock/securities between the buyer and the seller. From each transaction that happen, a brokerage firm will receive a commission from its client.
hope this helps
Answer:
c. the cost of corporate advertising aired during the Super Bowl.
Explanation:
Financial statements show the financial position of a business for a given period, and the income statement compares revenue and expenses to get profitability of a business at a particular time.
Higado Confectionery Corporation has a number of store locations throughout North America. Since there is segmented income statement per store items like store manager salaries, store building depreciation expense and cost of goods sold at each store will appear in individual statements.
However when there is a corporate advertisement at the Superbowl all of the stores jointly benefit, so there will be a representation of this cost on all their income statements.
