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Kay [80]
3 years ago
5

Sardi Inc. is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 14,200

of the components each year. The unit product cost of the component according to the company's cost accounting system is given as follows: Direct materials $ 10.00 Direct labor 7.00 Variable manufacturing overhead 2.80 Fixed manufacturing overhead 4.80 Unit product cost $ 24.60 Assume that direct labor is a variable cost. Of the fixed manufacturing overhead, 30% is avoidable if the component were bought from the outside supplier. In addition, making the component uses 1 minutes on the machine that is the company's current constraint. If the component were bought, time would be freed up for use on another product that requires 2 minutes on this machine and that has a contribution margin of $6.40 per unit. When deciding whether to make or buy the component, what cost of making the component should be compared to the price of buying the component? (Round your intermediate calculations to 2 decimal places.)
Business
1 answer:
IceJOKER [234]3 years ago
3 0

Answer:

Total cost $24.44

Explanation:

Sardi Inc.

Make

Direct materials$10.00

Direct labor7.00

Variable manufacturing overhead 2.80

Fixed manufacturing overhead (30% × $4.80 is avoidable)1.44

Opportunity cost ($6.40 per unit ÷ 2 minutes per unit) × 1 minutes3.20

Total cost $24.44

Therefore the cost of making the component should be compared to the price of buying the component at $24.44

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3 years ago
Buying and selling products online is called ____________. A. Information systems B. Browsing the web C. E-commerce D. E-mailing
Nadusha1986 [10]

Answer:

The answer is C. E-commerce

Explanation:

E-commerce refers to the process of buying or selling products or services over the Internet. So i believe this is the answer to the question.

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Chad competes in multiple ironman triathlons every year and trains outdoors daily. chad's been getting sunburned on his long bik
ch4aika [34]
The correct answer is "compliance influence".

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5 0
3 years ago
Neutrino Industries stock trades at $49 per share and there are 120 million shares outstanding. The management would like to rai
Gelneren [198K]

Answer:

Neutrino Industries must sell <u>8.68 million shares</u> to raise $400 million.

Explanation:

To calculate this, let B represents the number of shares Neutrino Industries must sell. Therefore, we have:

Gross proceeds = $49 * B, or $49B

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To raise $400 million, we deduct the underwriter charges from gross proceeds and solve for B as follows:

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$46.06B = 400,000,000

B = 400,000,000 / 46.06

B = 8,684,324.79 shares, or 8.68 million shares.

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4 0
3 years ago
27. The organizational unit that represents the independent legal accounting entity in SAP is the ________.
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The organizational unit that represents the independent legal accounting entity in SAP is the Company Code.

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A company code in SAP is the smallest organizational unit of external accounting for which you can establish a totally self-contained set of accounts for transaction posting.

If there are external reporting requirements, such as segment reporting for that unit in the local currency of that country, you can also use a business code to indicate a legally dependent operating unit abroad (commercial place of work).

Therefore, The Company Code is the SAP organizational unit that reflects the independent legal accounting entity.

To know more about SAP refer to:  brainly.com/question/12228915

#SPJ4

5 0
1 year ago
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