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katen-ka-za [31]
3 years ago
12

Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $10; direct la

bor, $14, variable overhead $3 and fixed overhead, $8. An outside supplier has offered to sell the product to Paxton for $32. Compute the net incremental cost or savings of buying the component.
Business
1 answer:
Usimov [2.4K]3 years ago
6 0

Answer:

$5 per unit

Explanation:

In this question, we compare the total cost and outside supplier cost which are shown below:

Total cost = Direct material per unit + direct labor per unit + variable overhead per unit

= $10 + $14 + $3

= $27

And, the outside supplier cost is $32

So, the incremental cost would be

= $32 - $27

= $5 per unit

The fixed cost would remain unchanged. So, we do not consider it.

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If the price of output falls from $5 to $2, the value of the marginal product of labor of all workers:
kicyunya [14]

When price declines, the value of marginal product of labor of all workers decreases.

Marginal product of labor is the change in output when labor employed in changed by one unit. For example, if total output of labor is 10 units when only one unit of labor is employed and 20 when two units of labour is employed. Price is $1. The marginal product of labor is $10 $1(20 - 10).

An increase in the price of output increases the marginal product of labor and a decline in the price of output decreases the marginal product of labor.

Please find attached the complete question. To learn more about the marginal product of labor, please check: brainly.com/question/17009411

3 0
3 years ago
General cognitive ability is similar to which of the five leadership traits in this text
stellarik [79]

Answer:

<u>Intelligence.</u>

Explanation:

General cognitive ability is a variable developed in psychometric studies of human intelligence and ability. That is, it is the ability to differentiate individuals according to their mental abilities. Individual mental capacity can be measured in a variety of ways through cognitive tasks or tests, which tend to be comparable to one's performance with other cognitive tasks. The purpose of factor G is to obtain a specific measure of overall intelligence.

5 0
3 years ago
The point at which it is no longer advantageous to buy in bulk is known as marginal?
kipiarov [429]

The point at which it is no longer advantageous to buy in bulk is known as marginal. It is the incremental increase in a benefit to a consumer caused by the consumption of an additional unit of good.Marginal benefits normally decline as a consumer decides to consume more and more of a single good.


8 0
3 years ago
Read 2 more answers
A profit-maximizing entrepreneur rents an apple orchard for a day. He is a price taker in both the market for labor and the mark
yaroslaw [1]

Answer:

c. 5

Explanation:

L       Q     MPL (ΔinQ/ΔinL)    VMPL

4      52  

5      60              8                       80

6      66              6                       60

7      70               4                       40

8 72               2                       20

Note: Labour hired per day = L, Total product = Q, Marginal Product of labor=MPL, VMPL =Price*MPL

A firm will maximize the profit by increasing the number of labor as long as VMPL is higher than or equal to the wage rate. In this case, we observe that VMPL ($80)>wage rate ($75) for L=5 but VMPL ($60)<wage rate ($75) for L=6. So, the optimal number of labor to be hired is 5.

7 0
3 years ago
Which tasks are common to all Energy pathways?
Gennadij [26K]
Performing calculations and using equipment
5 0
3 years ago
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