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finlep [7]
3 years ago
14

Piper Corp. is operating at 70% of capacity and is currently purchasing a part used in its manufacturing operations for $24 per

unit. The unit cost for the business to make the part is $36, including fixed costs, and $26, not including fixed costs. If 15,000 units of the part are normally purchased during the year but could be manufactured using unused capacity, what would be the amount of differential cost increase or decrease from making the part rather than purchasing it?
Business
1 answer:
Sauron [17]3 years ago
3 0

Answer:

$30,000 increase

Explanation:

Piper Corp is operating at 70% capacity, and so we can produce the unit in-house at no increase to fixed cost we are already incurring. So we assume fixed cost for the extra production is zero

Without fixed cost the unit can be produced at $26, so cost of producing the units needed= 26*15,000= $390,000

To buy the product we need $24 per unit, so the cost of buying the needed units is= 24* 15,000= $360,000

The differential cost of making the part rather than purchasing it = Cost of inhouse production- Cost of Buying= 390,000- 360,000= $30,000

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3 0
1 year ago
____________________An asset that lacks this attribute may take a long time to sell or be collected (so that it can be converted
g100num [7]

Answer:

Liquidity

Explanation:

Liquidity is the degree to which an asset can be converted to cash.  Assets that can easily be converted are described as liquid assets and include stocks and bonds.

Illiquid assets are not easy to sell. These assets may take a long time to sell or may be sold at a much cheaper price than the purchase price in order to make a quick sale. These include real estate, motor vehicles etc.

4 0
3 years ago
What type of bank account is best for everyday transactions?
Ilia_Sergeevich [38]

Answer:

money market account?

Explanation:

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6 0
3 years ago
Read 2 more answers
Suppose that the price of basketball tickets at your college is determined by market forces. Currently, the demand and supply sc
belka [17]

Answer:

a) see attached graph. There is nothing unusual with the supply curve, it is simply fixed. This happens to most services, e.g. there is a fixed number of hotel rooms available for rent, in the short run you cannot add more rooms per night if the demand increases. In order to increase the quantity supplied, you would need to build a larger hotel, or in this case, a larger stadium.

b) the equilibrium price is $8 and the equilibrium quantity is 8,000 tickets

c) if the college plans to increase enrollment, the demand might increase, leading to a higher equilibrium price, but the supply will remain the same until the stadium is expanded.

Explanation:

Price              Quantity Demanded (Qd)          Quantity Supplied (Qs)

$4                            10,000                                        8,000

$8                             8,000                                        8,000

$12                            6,000                                        8,000

$16                            4,000                                        8,000

$20                           2,000                                        8,000

3 0
3 years ago
John Smith, one of three managers at BSG Labs, drafted a policy that would allow his department to do more testing in his lab. T
jok3333 [9.3K]

Answer:

b. The policy made decisions for other departments in the company.

Explanation:

John Smith made the policy alone without involving the other managers. When the policy was implemented, it had to work with other departments to ensure success.

As there are 3 managers and 3 departments at BSG Labs, John Smith should have formulated the new policy with the other managers, so that issues such as scheduling and coordination between bthe various departments will run smoothly.

3 0
3 years ago
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