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Fudgin [204]
3 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]3 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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A company is considering two capital investments. Each requires an initial investment of $15,000 and has a 4 year useful life. I
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Answer:

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Explanation:

The computation of the payback period is shown below:

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3 years ago
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Answer:

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Explanation:

A rivalrous good is one in which usage, by an individual limits the ability of another to use the same good. Rival goods are tangible. This means that they can be held or touched. Examples in this category are; A sports team shirt and, the Atlantic Blue Fin Tuna. Eating a Tuna would limit access to another person, who wants to eat Tuna at that point in time. The same would apply to wearing a sports shirt.

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