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Likurg_2 [28]
3 years ago
9

Carmen manufactures a unit called A2. Variable manufacturing costs per unit of A2 are as follows:The Don Company has offered to

sell Carmen 5,000 units of A2 for $22 per unit. If Carmen accepts the offer, $60,000 of fixed manufacturing overhead will be eliminated.Applying differential analysis to the situation, what should Carmen do? Support your answers with the calculations you used to make your decision.Direct materials$1Direct labor$10Variable manufacturing overhead$5
Business
1 answer:
myrzilka [38]3 years ago
8 0

Answer:

Accepted

Explanation:

In this question, we have to compare the make or buy options which are shown below:

Particulars                                                    Make                    Buy

Direct materials (5,000 units × $1)           $5,000

Direct labor (5,000 units × $10)               $50,000

Variable manufacturing overhead

(5,000 units × $5)                                     $25,000

Fixed manufacturing overhead              $60,000           $110,000 (5,000 units  × $22)                                                                                  

Total                                                        $140,000                $110,000

Since in buy decision, the cost is minimum. So, the company should accept this offer

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kiruha [24]

Answer:

a. 1.5  and 1.8

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Explanation:

Below is the calculation for the current ratio:

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Current ratio of Kansas = 59000 / 40000 = 1.5

Current ratio of Montana = 78000 / 43000 = 1.8

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3 years ago
The ideal target market for a firm is the one in which it can profitably generate the greatest customer ________ and ________ it
serg [7]

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Value; Sustain and Grow

Explanation:

5 0
2 years ago
Surrealists emphasized _____________ instead of ____________.
liberstina [14]

The correct answer is irrationalism and rationalism. It is because surrealist are cultural movement in which they are likely to reunite cultures or different races in means of having to have unity, that’s why they are likely to focus more on irrationalism than rationalism.

3 0
3 years ago
Read 2 more answers
Northwest Fur Co. started the year with $92,000 of merchandise inventory on hand. During the year, $425,000 in merchandise was p
Artyom0805 [142]

Answer:

$ 142,800.00  

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The ending inventory can be computed by rearranging the cost of goods sold formula:

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8 0
3 years ago
"At that time, the market price of ABC is $44. If the market rises to $58 and the call is exercised (the put expires out the mon
steposvetlana [31]

Answer:

600 loss

Explanation:

The computation of the gain or loss is shown below:

Since on Jan, there is a put option of 45 at $3 and the market rises to $58

So it losses by 13 points i.e

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So for 6 points, the net loss is $600

7 0
3 years ago
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