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NNADVOKAT [17]
3 years ago
5

The Talbot Corporation makes wheels that it uses in the production of bicycles. Talbot's costs to produce 100,000 wheels annuall

y are: Direct materials $30,000 Direct labor $50,000 Variable manufacturing overhead $20,000 Fixed manufacturing overhead $70,000 An outside supplier has offered to sell Talbot similar wheels for $1.25 per wheel. If the wheels are purchased from the outside supplier, $15,000 of annual fixed overhead could be avoided and the facilities now being used could be rented to another company for $45,000 per year. Direct labor is a variable cost. If Talbot chooses to buy the wheel from the outside supplier, then annual net operatingincome would: A. Increase by $35,000 B. Decrease by $10,000 C. Increase by $45,000 D. Increase by $70,000
Business
1 answer:
deff fn [24]3 years ago
6 0

Answer:

Increase in net annual operating income  $35,000

Explanation:  

                                                                                                    $

Variable cost of internal production

(30,000+50,000 + 20,000)                                                    100,000

Variable cost of purchase  (1.25× 100,000)                           <u>125,000</u>

Extra variable cost of buying                                                  ( 25,000)

Add savings in fixed cost from                                                15,000

Add rent from facilities                                                         <u>    45,000</u>

Increase in net annual operating income                            <u>  35,000</u>

Increase in net annual operating income  $35,000

The balance of the the fixed  cost is not relevant hence it was  not considered. This is so because whatever decision is taken, it would be incurred either way

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Roberto designers was organized on January 1,2021. The firm was authorized to issue 100,00 shares of $5 par value common stock.
jekas [21]

Answer: the correct answer is D) $250,000

Explanation:

Answers

transactions relating to stockholder's equity

Issued shares 10,000* $7 = $70,000

Issued shares 20,000*$8   = $160,000

net income                            = $100,000

                                                --------------  

Sub Total                                 $330,000  

Debts                              

50,000 dividend                       ($50,000)

3,000 *$10 treasury stock       ($30,000)    

                                                   --------------  

Sub Total                                   ($80,000)

Total   $330,000-$80,000 =  $250,000                                    

8 0
3 years ago
Suppose the U.S. and Japan both produce airplanes and televisions and the U.S. has a comparative advantage in the production of
EastWind [94]

Answer:

d. both countries, as whole, will be better off.

Explanation:

When countries leverage on their comparative advantages, they will be better off. In this instance as US has comparative advantage in producing airplanes, it will be more cost effective for them to produce and export to Japan.

So also Japan will find it cheaper to produce televisions and export to the US. Both contries reduce cost by producing goods they have comparative advantage in.

6 0
2 years ago
Doug is the vice president of product development for a corporation that makes flavored honey. Doug proposes to the board that t
yuradex [85]

Answer:

The board most likely will not be held responsible.

Explanation:

The board of directors can legally defend themselves based on the Business Judgement Rule. This rule in contained in the <u>Corporations Act of 2001 - Section 180.</u> It states that any decision made in regards to the business operations should be:

  • In good faith and not based on personal gain
  • In the best interest of the corporation
  • Based on information that supports the decision

For this particular case, the board based their decision on <em>previous market research</em> that received positive feedback.

6 0
2 years ago
While eating at Alex’s "Pizza by the Slice" restaurant, Clara experiences diminishing marginal utility. She received 10 utils fr
klemol [59]

Answer:

Alex may have to lower the price to convince Clara to buy a second slice.

Explanation:

Marginal utility is an economic concept that says that a consumer recieves more marginal utility in the first consumption of a good or services than in the second and the subsequents. In fact with each consumption the marginal utility reduces, this effect is known as diminishing marginal utility.

One of the the methods to reduce the effects of the diminishing marginal utility is to reduces prices. As the utility of a product decreases as its consumption increases, consumers are willing to pay smaller amount of money for more of the product.

6 0
2 years ago
What is a disadvantage of government bonds?
PolarNik [594]
The disadvantage of government bonds is that the government keeps the money
7 0
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