Answer:
The president of Riggs has missed something.
She should make the Sail instead of buying because its cheaper to manufacture than purchasing it outside.
Explanation:
<u>Cost of Manufacturing the Sails:</u>
Direct materials $93
Direct Labor $83
Total $173
The president of Riggs has included the $90 overhead based on $78,000 of annual fixed overhead that is allocated using normal capacity in the cost of manufacturing the sail which is incorrect.
Riggs Company is operating at 80 % of full capacity, hence utelizing the 20% excess capacity would not expand its fixed costs.
Thus said the current fixed cost are irrelevent for this decison and would be incurred whether or not Riggs Company utilizes the excess capacity
<u>Conclusion:</u>
The cost of making the sail is $173 which is lower than the cost of buying them at $ 258.
I would advise The president of Riggs to make the sail by utilizing the excess capacity since its cheaper than purchasing it outside.
Question attached
Answer and Explanation:
Answer and explanation attached
Answer:
Compound interest (or combining interest) is that the interest on a loan or deposit calculated supported each the initial principal and also the accumulated interest from previous periods.
<span>The correct option is B. Convenience goods are those goods that are widely available and are often frequently bought with minimal efforts. Convenience goods appeal to large market, they are relatively cheap and consumers bought them with little or no planning. </span>
