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valkas [14]
3 years ago
7

Vaughn’s Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $1270

00 Direct Labor 32000 Variable Overhead 44000 Fixed Overhead 30000 If Vaughn’s Manufacturing Company can purchase the component externally for $205000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Buy and save $2000 Make and save $16000 Buy and save $16000 Make and save $2000
Business
1 answer:
Margaret [11]3 years ago
6 0

Answer:

Buy and save $2000

Explanation:

Vaughn’s Manufacturing Company

Differential Analysis

                                        Make                 Buy

Direct Materials           $127000

Direct Labor                  32000

Variable Overhead       44000

Fixed Overhead           30000           26000

<u>Purchasing Cost                                 $205000     </u>

<u>Total                             233,000           231,000</u>

From the above we see that the total costs to make are $ 233,000 and purchasing costs are $ 231,000. There's a difference of $ 2,000 so buying and saving $ 2000 is the correct option.

$ 26,000 ( 30000- 4000) are irrelevant costs that will continue whether the product is purchased or made.

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3. According to their comparative advantage, Alphaland specializes in axes and Betaville specializes in batons. Alphaland will t
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Answer: Option (C) is correct.

Explanation:

A country has a comparative advantage in producing a commodity if the opportunity cost of producing that good is lesser in that country as compared to the other country.

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Answer:

1) We need a random sample. For this case we assume that the sample selected was obtained using the simple random sampling method.

2) We need to satisfy the following inequalities:

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So then we satisfy this condition

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So then since all the conditions are satisfied we can conclude that we can apply the normal approximation given by:

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So then the answer for this case would be:

a. Yes.

Explanation:

For this case we assume that the question is: If in the experiment described we can use the normal approximation for the proportion of interest.

For this case we have a sample of n =25

And we are interested in the proportion of registered students that spend more than 20 minutes to get to school.

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So in order to do this approximation we need to satisfy some conditions listed below:

1) We need a random sample. For this case we assume that the sample selected was obtained using the simple random sampling method.

2) We need to satisfy the following inequalities:

n\hat p =25*0.52= 13 \geq 10

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So then since all the conditions are satisfied we can conclude that we can apply the normal approximation given by:

p \sim N (\hat p, \sqrt{\frac{\hat p (1-\hat p)}{n}})

So then the answer for this case would be:

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