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Fudgin [204]
4 years ago
10

Eichholtz Company uses 10,000 units of a part in its production process. The costs to make a part are: direct materials, $12; di

rect labor, $25; variable overhead, $13; and applied fixed overhead, $30. Eichholz has received a quote of $55 from a potential supplier for this part. If Eichholtz buys the part, 70 percent of the applied fixed overhead would continue. Eichholtz Company would be better off by
a) $50,000 to manufacture the part
b) $150,000 to buy the part
c) $40,000 to buy the part or
d) $160,0000 to manufacture the part
Business
1 answer:
slava [35]4 years ago
3 0

Answer:

c) $40,000 to buy the part

Explanation:

For computing the better off first we have to compute the per unit cost which is shown below:

= Direct material per unit + Direct labor per unit + variable overhead + applied variable overhead

= $12 + $25 + $13 + $30 × 30%

= $12 + $25 + $13 + $9

= $59

The difference cost would be

= $59 - $55

= $4

Now the better off would be

= Number of units × difference cost

= 10,000 units × $4

= $40,000

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3 years ago
When a pharmaceutical company advertises that its product has a greater pain-relieving effect than Tylenol, it is using _____ ad
Marina CMI [18]

When a pharmaceutical company advertises that its product has a greater pain-relieving effect than Tylenol, it is using comparative advertising.

<h3>What do you mean by comparative advertising?</h3>

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6 0
2 years ago
The quality control manager at a computer manufacturing company believes that the mean life of a computer is 80 months, with a s
dangina [55]

Answer:

0.4998

Explanation:

Given that:

Mean life of computer μ = 80

standard deviation σ  = 8

Mean of sample n = 73

x = 83.28

We have to find P(Mean of sample is less than 83.38 months) =

P(X<x=83.38), to do this we have to first determine the z score.

Since we are dealing with multiple samples, the z score will :

z = (x – μ) / (σ / √n)

z = (83.28 - 80)/ (8/√73)

z = 3.28/0.936

z = 3.5

P(X<x=83.38) = P ( Z < z = 3.5)

Use the standard normal table to find P ( Z < 3.5 )

We will have P (Z < 3.5 ) = 0.4998

The probability that the mean of a sample of 73 computers would be less than 83.28 months is 0.4998

3 0
3 years ago
Monetary Policy in Mokania Mokania has had inflation of 15% for many years. Mokania establishes a new central bank, the Bank of
mart [117]

Answer: b. unemployment rises but it would have risen by less if the Bank of Mokania had reduced inflation to 5% rather than 3%

Explanation:

There exists and inverse relationship between the unemployment rate and the inflation rate with the logic being that higher inflation means that the economy is doing better and people have more jobs and are demanding more goods and services hence the inflation.

If the inflation drops more than people were expecting it to therefore, unemployment would rise. As mentioned above, inflation and unemployment are negatively correlated so the more the fall in inflation, the higher the unemployment rate.

A fall in inflation to 3% would therefore mean a higher rise in employment than a fall in inflation to 5% which is less of a fall and so will lead to a smaller rise in unemployment.

7 0
3 years ago
Simon Inc. has the following account balances before the closing,
Lesechka [4]

Answer:

$18,200

Explanation:

Retained earnings. $2,520

Add: Service revenue $21,920

$24,440

Less : Expenses

Wages expenses (3,200)

Supplies expense (1,120)

Depreciation exp. (960)

Total expenses. (5,280)

Net income 19,160

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Retained earnings 18,200

Retained earnings at 31 December is $18,200

7 0
4 years ago
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