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sasho [114]
3 years ago
5

Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 60 comma 000 parts is

$ 160 comma 000​, which includes fixed costs of $ 70 comma 000 and variable costs of $ 90 comma 000. The company can buy the part from an outside supplier for $ 3.00 per​ unit, and avoid​ 30% of the fixed costs. If Harvey Automobiles makes the​ part, how much will its operating income​ be?
Business
1 answer:
Fittoniya [83]3 years ago
7 0

Answer:

$69,000

Explanation:

The computation of the operating income would be shown below:

= Buying cost - making cost

where,

Buying cost equals to

= 60,000 × $3

= $180,000

And, the making cost would be

= Variable cost + fixed cost × avoid percentage

= $90,000 + $70,000 × 30%

= $90,000 + $21,000

= $111,000

Now put these values to the above formula  

So, the value would equal to

= $180,000 - $111,000

= $69,000

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The steps for finding the EOQ in a quantity discount model with variable H are:

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What is the Economic Order Quantity(EOQ)?

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1 year ago
What is an externality? how do externalities relate to socially optimal quantity?
Elodia [21]
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7 0
2 years ago
Mallory Furniture buys two products for resale: big shelves (B) and medium shelves (M). Each big shelf costs $500 and requires 1
Ghella [55]

Answer:

The answer is D

Explanation:

Solution:

Recall that:

Malloy Furniture purchases two products: Big shelves B and Medium shelves M

The cost of big shelf is =$500

The space required = 100 cubic feet

The cost of each medium shelf is =$300

Storage space = 90 cubic feet,

Now,

Since the values 100 and  90 is greater than 18000 cubic feet available for storage, what is required would be 100 big shelves and 100 medium shelves

5 0
3 years ago
Frantic Fast Foods had earnings after taxes of $1,070,000 in 20X1 with 311,000 shares outstanding. On January 1, 20X2, the firm
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Answer:

X1 EPS =  $ 3.44 per share

X2 EPS = $ 3.88 per share

Explanation:

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X1: Earning per share

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X2 shares outstanding:

beginning 311,000 + issued 31,000 = 342,000

EPS: 1,326,800 / 342,000 =  3,8795 = 3.88

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3 years ago
When conducting a swot analysis, budgets, ratios, and sales reports can be used to identify:?
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