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
Tasya [4]
3 years ago
10

Sparrow Co. is currently operating at 80% of capacity and is currently purchasing a part used in its manufacturing operations fo

r $8.00 a unit. The unit cost for Sparrow Co. to make the part is $9.00, which includes $0.60 of fixed costs. If 4,000 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? a. $20,000 cost decrease b. $4,000 cost increase c. $1,600 cost increase d. $12,000 cost decrease
Business
1 answer:
ELEN [110]3 years ago
7 0

Answer:

The correct option is C) $1600 cost increase.

Explanation:

COST OF BUYING WOULD BE = 4000 UNITS X $8

                                                    = $32,000

COST FOR MANUFACTURING THE PART WOULD BE =

4000 UNITS X $9 - 4000 UNITS X $.60

here we are subtracting the fixed cost from the total cost of manufacturing,a s only the variable cost would be taken in to account.

= $36,000 - $2400

= $33,600

So the difference between making product and buying product is $1600, therefore there would be increase of cost by $1600.

You might be interested in
2 question 50 points PLUS Brainliest!
Kay [80]
  1. <em><u>Option </u></em><em><u>b </u></em>
  • <em>cuz </em><em>she's</em><em> </em><em>going </em><em>to </em><em>inform</em><em> </em><em>the </em><em>public</em><em> </em><em>about</em><em> </em><em>this </em><em>so<u> </u></em> <em>she needs to be a great public speaking </em>

2. <em><u>True</u></em>

7 0
3 years ago
Read 2 more answers
Brenda conducts brokerage activities and can receive compensation directly from buyers
kykrilka [37]

Answer:

A) Broker

Explanation:

she is a Broker if she recieves compensation directly from either buyers or seller.

moreover, she conducts brokerage activities.

hope it helps .

5 0
3 years ago
If total utility has reached a maximum level, and assuming that diminishing marginal utility already applies, then what will hap
Nady [450]

Answer:

Marginal utility of the additional units will turn negative

Explanation:

As total utility has reached a maximum level, adding additional units of the same product will generate the total utility to decrease thus, the marginal utility of this additional products is negative as they made the utility of the consumer to decrease.

The diminish return theory state that:

The units increase utility at a decreasing rate  and then, they reach a maximum of utility afterwhihc, additional units do not generate utility, they decrease it

4 0
4 years ago
X Company is preparing its IPO prospectus and is informed by its attorneys that the company needs to discuss the board's role in
Rom4ik [11]

<u>Answer: </u>This discuss would be best placed within the section of the prospectus known as the management section.

<u>Explanation:</u>

The management section in the prospectus has the information regarding the management team biography and the key people in the company. The board's role in risk oversight is through developing policies to build strategies that are consistent with risk ability of the X Company.

Enterprise risk management is a strategy that helps is preventing the company from any hazards. ERM has its effect on the operations of the company so the Board plays a major role in managing ERM.

3 0
3 years ago
The best explanation as to why direct democracy would not work well in the United States is that
Masteriza [31]

The US general population is far too diverse and the population too large.  There is bound to be issues and disagreements on almost all laws that would be passed.  With the amount of laws being passed in the state and national government nowadays, people would literally spend most of their waking hour voting rather than being useful members of the society

:)

6 0
3 years ago
Other questions:
  • If you were given a large data set, such as the sales over the last year of our top 100 customers, what might you be able to do
    15·2 answers
  • Which of the following will usually be found on an income statement prepared using absorption costing? Contribution Margin/ Gros
    12·1 answer
  • On February 1, a seller paid $1,140 in annual property tax for the current calendar year. He sold the house with the closing set
    14·1 answer
  • Wyatt Co. has a probable loss that can only be reasonably estimated within a range of outcomes. No single amount within the rang
    10·1 answer
  • In addition to the three basic financial statements, which of the following is also a required financial statement?
    9·1 answer
  • The degree of financial leverage for ABC Inc. is 2.5, and the degree of financial leverage for XYZ Corporation is 1.5. According
    11·1 answer
  • You have been engaged to review the financial statements of Flounder Corporation. In the course of your examination, you conclud
    15·2 answers
  • Discuss reasons why a business needs funding ?
    13·1 answer
  • What are the two major components of a working capital management strategy
    8·1 answer
  • Reason for a bimodel distribution
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!