Answer:
It is cheaper to make the part in house.
Explanation:
Giving the following information:
Harrison Enterprises currently produces 8,000 units of part B13.
Current unit costs for part B13 are as follows:
Direct materials $12
Direct labor 9
Factory rent 7
Administrative costs 10
General factory overhead (allocated) 7
Total $45
If Harrison decides to buy part B13, 50% of the administrative costs would be avoided.
To calculate whether it is better to make the par in-house or buy, we need to determine which costs are unavoidable.
Unavoidable costs:
Factory rent= 7
Administrative costs= 5
General factory overhead= 7
Total= 17
Now, we can calculate the unitary cost of making the product in-house:
Unitary cost= direct material + direct labor + avoidable administrative costs
Unitary cost= 7 + 5 + 5= $17
It is cheaper to make the part in house.
Answer:
The contribution margin for Sam's Bookstore for the first quarter is 0.84 or 84 %
Explanation:
Contribution Margin = Contribution ÷ Sales
Where,
<em>Contribution = Sales - Variable Costs</em>
where,
Sales :
Sales = $ 900,000
Number of Books Sold = $ 900,000 ÷ $50
= 18,000 books
Variable Costs Calculation :
Cost of goods sold $630,000
Variable selling expenses ($5 × 18,000 books) $90,000
Variable administrative expenses( 4% × $ 900,000) $36,000
Total Variable Costs $756,000
Therefore,
Contribution Margin = $756,000÷ $ 900,000
= 0.84 or 84 %
Answer:
supply
Explanation:
it is how much of something you have to sell
Answer:
$8,120
Explanation:
<em>To calculate the proceeds, the gross proceed less the discount charged by the bank. The gross proceed is the total amount that would have been received should the note is held to maturity.</em>
Gross proceed= P + (P×R×T)
P- 8,000 R- 6%, T- 10/12
Gross proceed = (8,000 + 8,000× 6%× 10/12)
= $8,400
Discount charges = Gross proceed × discount rate × time to maturity
Time to maturity = 10 - 5 = 5 months
Discount rate - 8%, Time- 5/12
Discount charges = 8400× 5/12× 8% = $280
Proceeds to be received = $8,400 - $280
= $8,120
