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
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).

You might be interested in
Owen is considering giving a large charitable contribution to an organization in the current year. Owen's adjusted gross income
oee [108]

Answer:

Explanation:

There is a limit on the amount of charitable contribution that a taxpayer can claim as deduction and it depends on the type of property that a taxpayer donates and nature of charity organization. A taxpayer can deduct up to 60% of adjusted gross income (AGI) in the case of cash contributions to public charity. When he contributes capital gain property, he can deduct up to 30% of adjusted gross income in the case of public charity. When he contributes capital gain property to private non operating foundation, he can deduct up to 20% adjusted gross income.

Calculate the maximum amount of deduction as follows

Download xlsx
4 0
3 years ago
Business Information Management 1a: Introduction / Unit 2: The Finances of Business
Y_Kistochka [10]

The finances of businesses involve several things, including:

  • Revenue and profit.
  • Costs and expenses.
  • Budgets.

<h3>What are some components of finance in business?</h3>

The financial aspect of a business is hugely important to the success of the business because it involves making a profit which is the sole purpose of business.

In order to be successful in business, one needs a good financial plan. This plan will predict the revenue that the company should be earning in order to make profit.

It should also include the various costs and expenses that the business will incur as it engages in business. This financial plan usually comes in the form of a budget which provides ideas on how a business should spend money.

Note: Question was incomplete so a general overview of business finance was given.

Find out more on business finance at brainly.com/question/1265337.

5 0
2 years ago
Read 2 more answers
Which of the following statements is CORRECT?a. Two firms with the same expected free cash flows and growth rates must also have
brilliants [131]

Answer:

.b. It is appropriate to use the constant growth model to estimate a stock's value even if its growth rate is never expected to become constant

TRUE The multi-stage valuation considers different grow rates for the subsequent years

Explanation:

a. Two firms with the same expected free cash flows and growth rates must also have the same value of operations

FALSE as their cost of capital can differ.

c. If a company has a weighted average cost of capital WACC = 12%, and if its free cash flows are expected to grow at a constant rate of 5%, this implies that the stock's dividend yield is also 5%.

FALSE dividend yield is a relationship between price and dividend it doesn't considers the growth of the company, just current values.

d. The value of operations is the present value of all expected future free cash flows, discounted at the free cash flow growth rate

FALSE They are discounted at the difference between return and grow rate

e. The constant growth model takes into consideration the capital gains investors expect to earn on a stock.

FALSE It considers the capital gains as speculations

8 0
2 years ago
What human relations skills is most clearly related to communication?
Wewaii [24]
The answer is Hearing. On the off chance if the mouth is open, the ears cannot listen. Hearing and talking go as an inseparable unit, on the off chance that you cannot talk no one can comprehend what you need either. 

I hope this helped ^_^ 
4 0
3 years ago
Cheapo Corporation sells products that are poorly made. Marcia, who has never bought a Cheapo product, files a suit against the
galina1969 [7]

Answer:

standing

Explanation:

Standing -

It refers to the situation , when the party who has filed the complaint on the court is not able to show any proof for the case filed , is referred to as standing .

It refers to the type of some medical report , any eye witness ,or any clue or proof against the other party , can be provided to the court .

Hence , from the given scenario of the question ,

The correct term is standing .

3 0
3 years ago
Other questions:
  • Which of the following is not a common term for a mortgage loan? A. 30 years B. 20 years C. 15 years D. 10 years
    6·1 answer
  • In times of economic downturn, which of the following businesses is most likely to do well?
    10·2 answers
  • What is the elastic clause and how does it help the constitution remain relevant?
    12·1 answer
  • Question 1 (1 point)
    14·1 answer
  • Suppose the real risk-free rate is 3.00%, the average expected future inflation rate is 5.90%, and a maturity risk premium of 0.
    13·1 answer
  • At the end of the current period, Maltese, Inc. reports the following amounts: Assets = $52,300; Liabilities = $21,100; Dividend
    9·1 answer
  • Pl lumber stock is expected to return 22 percent in a booming economy, 15 percent in a normal economy, and lose 2 percent in a r
    11·1 answer
  • You believe that the future value of the Australian dollar will be determined by purchasing power parity (PPP). You expect that
    14·1 answer
  • The downward slope of a demand curve illustrates the pattern that as ________ decreases, ________ increases.
    14·1 answer
  • WeeBee Company has three assembly labor dassifications: 5-1, S-2, and S-3. The three dassifications are paid $16, $19, and $22 p
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!