1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ollegr [7]
3 years ago
7

Frank Co. is currently operating at 80 percent of capacity and is currently purchasing a part used in its manufacturing operatio

ns for $25 unit. The unit cost for Frank Co. to make the part is $30, which includes $3 of fixed costs. If 20,000 units of the part are normally purchased each year but could be manufactured using unused capacity, what would be the amount of differential cost increase or decrease for making the part rather than purchasing it
Business
1 answer:
azamat3 years ago
5 0

Answer:

If the company makes the product, income will decrease by $40,000.

Explanation:

Giving the following information:

Purchase price= $25

Production cost:

The unit cost for Frank Co. to make the part is $30, which includes $3 of fixed costs.

First, we need to calculate the total cost of buying the part:

Total cost= 20,000*25= $500,000

Now, the total cost of production:

We won't take into account the fixed costs, because there is unused capacity.

Total cost= 20,000*27= $540,000

If the company makes the product, income will decrease by $40,000.

You might be interested in
Metaline Corp. uses the weighted average method for inventory costs and had the following information available for the year. Th
Archy [21]

Answer:

Total equivalent units= 4,190

Explanation:

Giving the following information:

Beginning Work in Process (30% complete, $1,600) 250 units

Ending inventory of Work in Process (70% complete) 450 units

Total units started during the year 3,700 units

<u>We need to calculate the number of units completed and transferred out.</u>

Beginning work in process= 250*0.7= 175

Units started and completed= 3,700

Ending work in process equivalent units= 450*0.7= 315

Total equivalent units= 4,190

4 0
3 years ago
The best indication of a property's value comes from:
Andrej [43]
I believe the correct answer is option C. The best indication of a property's value comes from recently sold properties. A property's value would be higher when the place is a transportation access point and around it many infrastructure are present or it is a tourist spot.
8 0
3 years ago
One of the main implications of the four-drive theory is that: employers should give all employees the same employee benefits. e
Vitek1552 [10]

Answer: Employers should offer employees enough opportunity to keep each of their drives in balance.

Explanation:

The Four-Drive Theory is a way of improving Employee motivation through more ways than just financial incentives. It is believed that all four factors are very integral in the motivation of employees and so managers would do well to implement them to get the best out of their employees.

The Four drives are, <em>Acquire and Achieve</em>, <em>Bond and Belong</em>, <em>Create and Challenge</em> and <em>Define and Defend</em>.

A key recommendation by the proponents of this theory is that Managers should not give their employees too little or too much opportunity to follow each drive but rather give them enough opportunity that they keep each drive balanced with the others.

3 0
3 years ago
When is it appropriate to use an absolute reference?
Kipish [7]

Answer:

C.

Explanation:

i just had this question on a paper test and i got it right i hope this helps

5 0
3 years ago
Leggio Inc. issued bonds with a 30-year maturity one year ago. The bonds have a 7% coupon, make one payment per year, and sold a
Talja [164]

Answer:

$1,302.82

Explanation:

The computation of the price that need to sell the bond is shown below:

Here we calculate the present value for the same

Given that

RATE = 5%

NPER = 30 - 1 = 29

PMT = $1,000 × 7% = $70

FV = $1,000

The formula is shown below:

=-PV(RATE;NPER;PMT;FV;TYPE)

After applying the above formula, the present value is $1,302.82

3 0
3 years ago
Other questions:
  • Which type of statement is used to communicate ones feelings in a non confrontational manner?
    5·1 answer
  • A weaker dollar benefits ---------- and hurts-----------
    5·1 answer
  • What is a stock market? What is an example of a stock market?
    7·2 answers
  • Which of the following statements concerning capital structure theory is NOT CORRECT?
    8·1 answer
  • In both Gamma and Delta average labor productivity is $20,000 per worker per year. The population of Gamma is 200,000 and the po
    6·1 answer
  • Bill owns a company called Wild Bill's Bracelets that sells custom jewelry. He launched a Search campaign to drive sales of his
    8·1 answer
  • Soundgarden Company sold 200 color laser copiers on July 10, 2020, for $4,000 apiece, together with a 1-year warranty. Maintenan
    13·1 answer
  • You started your first job after graduating from college. Your company offers a retirement plan for which the companycontributes
    10·1 answer
  • Baker Industries’ net income is $26,000, its interest expense is $6,000, and its tax rate is 45%. Its notes payable equals $23,0
    5·1 answer
  • How does the government use monetary policy and fiscal policy to achieve its macroeconomic goals?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!