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katen-ka-za [31]
4 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]4 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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A company issues a​ ten-year bond at par with a coupon rate of 6.4​% paid​ semi-annually. The YTM at the beginning of the third
sladkih [1.3K]

Answer:

\mathbf{current  \ price \  of \  the \ bond=  \$848.78}

Explanation:

The current price of the bond can be calculated by using the formula:

current  \ price \  of \  the \ bond= ( coupon \times  \dfrac{ (1- \dfrac{1}{(1+YTM)^{no \ of \ period }})}{YTM} + \dfrac{Face \ Value }{(1+YTM ) ^{no \ of \ period}}

current  \ price \  of \  the \ bond= ( \dfrac{0.064 \times \$1000}{2} \times  \dfrac{ (1- \dfrac{1}{(1+ \dfrac{0.091}{2})^{8 \times 2}})}{\dfrac{0.091}{2}} + \dfrac{\$1000 }{(1+\dfrac{0.091}{2} ) ^{8 \times 2}})

current  \ price \  of \  the \ bond=  \$32 \times $11.19 + \$490.70

current  \ price \  of \  the \ bond=  \$358.08+ \$490.70

\mathbf{current  \ price \  of \  the \ bond=  \$848.78}

5 0
4 years ago
when the percentage change in the price is greater htan the resulting percentage change in quantity demanded,
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What is the difference between SG&A costs and Indirect costs?
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Which describes risk aversion?
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Risk aversion is the behavior in someone when they are exposed to uncertainty and are unsure of something due to being uncertain about it.  

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4 0
4 years ago
Read 2 more answers
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