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Lisa [10]
3 years ago
11

Ortega Industries manufactures 19,900 components per year. The manufacturing cost of the components was determined to be as foll

ows: Direct materials$178,000 Direct labor 380,000 Variable manufacturing overhead 104,000 Fixed manufacturing overhead 260,000 Total$922,000 Assume that the fixed manufacturing overhead reflects the cost of Ortega's manufacturing facility. This facility cannot be used for any other purpose. An outside supplier has offered to sell the component to Ortega for $34. If Ortega Industries purchases the component from the outside supplier, the effect on operating profits would be a:
Business
1 answer:
professor190 [17]3 years ago
6 0

Answer: Increased profit as opposed to making them internally.

Explanation:

Make or buy decisions are management decisions as to whether production components should be produced internally or outsourced.

Buy decision

Unit price= $34

Total unites= 19900

Total cost= $34*19900=$676,600

Make decision

$

Direct materials 178,000

Direct Labor. 380,000

Variable overhead. 104,000

Relevant fixed overhead 260,000

Total $922,000

Unit price for make=922000/19900

Unit price=$46.33

Since buying outside is more cheaper than producing internally, it will be more profitable to outsource(buy).

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On the day Harry was born, his parents put $1200 into an investment account that promises to pay a fixed interest rate of 6 perc
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There will be $2712 in Harry's account after 21 years.

Explanation:

The initial amount put into the investment account was $1200. This account has an interest rate of 6% every year. This means that for every year that money is kept in this account, the bank must pay them 6%. To do this we must calculate how much 6% of $1200 is

6% of $1000 is 0.06 * $1000 =$72.

So for every year, the interest of $72 is added into the account. To calculate total interest we multiply this interest amount and the number of years.

So after 21 years= $72 * 21 years = $1512.

So interest gained in 21 years is $1512 but this is only the interest amount. We must add the initial amount with this to find the total amount available in the account.

Total amount present= Inital amount + Amount due to interest= $1200 + $1512= $2712.

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3 years ago
What is mean't by chain of command
mixas84 [53]

Answer: The definition of a chain of command is an official hierarchy of authority that dictates who is in charge of whom and of whom permission must be asked. An example of chain of command is when an employee reports to a manager who reports to a senior manager who reports to the vice president who reports to the CEO.

Explanation:

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3 years ago
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In addition, the average salary refers to a certain period. The most common periods are annual or monthly. That is, the average annual salary or the average monthly salary.

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