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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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Answer: (D) Competency

Explanation:

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It is refers to the set of functions which contain the various types of cognitive skill and the knowledge that performing critical functions. The behavioral and the function are the two main types of the competency.

According to the given question, the evergreen air center is one of the biggest parking system for the aircraft and based on the given scenario the evergreen's location is refers as competency.      

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Pavlova-9 [17]

Answer:

<u>Zone of tolerance</u>

Explanation:

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4 0
3 years ago
According to liquidity preference theory, money supply and money demand are balanced by adjustments of
givi [52]

Answer:

Nominal Interest rate

Explanation:

According to liquidity preference theory, money supply and money demand are balanced by adjustments of Nominal Interest rate. Suppose you have some money, you will decide to either keep it in cash or in the bank. If you keep the money in cash, the opportunity cost of keeping in cash is the interest rate earned if you would have kept the money in the bank. Bank offers the nominal interest rates and not the real interest rates. Bank rates are not adjusted for inflation. So if the interest rate on money increases the opportunity cost of holding money in cash increases. If money supply in the economy increases the demand for money will increase only by reducing the interest rate because then only people fir hold cash and demand higher money.  So, money supply and money demand are balanced by adjustments of the Nominal Interest rate.

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2 years ago
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Levart [38]

Answer:

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