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anastassius [24]
3 years ago
10

Computers makes 5 comma 900 units of a circuit​ board, CB76 at a cost of $ 290 each. Variable cost per unit is $ 220 and fixed c

ost per unit is $ 70. Peach Electronics offers to supply 5 comma 900 units of CB76 for $ 270. If Degler buys from Peach it will be able to save $ 25 per unit in fixed costs but continue to incur the remaining $ 45 per unit. Should Degler accept​ Peach's offer? Explain.
Business
1 answer:
blondinia [14]3 years ago
4 0

Answer:

There is a loss on buying from outside supplier ,Peach's offer should not be accepted.

Explanation:

Variable cost is a cost that varies with number of units produced or sold so it is always a relevant cost while making decision.

Fixed cost remains constant irrespective of number of units so it is a irrelevant cost unless avoidable.So in the given case ,fixed cost $70 is irrelevant since same will be incurred whether purchased or manufactured.

Incremental savings  

Saving in variable cost   220

saving in fixed cost   25

Total saving                   245

less: Incremental cost (270)

Incremental profit /(loss) on buying from outside supplier (25)

Total loss 25*5900= -147500

Therefore, There is a loss on buying from outside supplier ,Peach's offer should not be accepted.

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Answer:

$16,400

Explanation:

Depreciation for 2020 is calculated as;

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Given that ;

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Therefore, depreciation for 2020 is $16,400.

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Answer:

The correct answer is letter "B": You will not have access to Federal student aid, such as scholarships, grants, and loans.

Explanation:

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3 years ago
E-Eyes has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first di
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Answer:

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Explanation:

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5 0
2 years ago
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Answer:

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7 0
1 year ago
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A store accidentally priced an item at $20 instead of $30 and honored the mispricing. where should the $10 difference
dimulka [17.4K]

Answer:

The difference is attributed to sales.

Explanation:

The difference of $10 will be attributed to sales because $20 is charged instead of $30 which means selling price has been changed. However, it cannot be considered as a loss because the cost price is not given. It might be the actual cost price for the item is $15 and the store is selling at $20 instead of $30. So, in this case, the store is making a profit of $5. Thus, the difference is considered as the sale difference.

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