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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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BartSMP [9]

Answer:

Explanation:

While buying a computer , the potential purpose and usage of the computer should as well as the component of the computer to buy should be considered in order to make a right selection .

As graphics designing software is processor intensive , a processor with a very high speed of at least 1 Ghz and an adequate RAM to aid faster process at once , minimum of 8Gb is required.

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8 0
3 years ago
Read the information about 2 competing credit cards.
Luda [366]

Answer: A. Had major expenses in the first year.

Explanation: It just makes sense and it’s also correct

4 0
3 years ago
Read 2 more answers
Bennett Co. has a potential new project that is expected to generate annual revenues of $262,100, with variable costs of $144,00
swat32

Answer:

Operating cash flow= $29,886

Explanation:

Giving the following information:

Sales= $262,100

Total variable cost= $144,000

Total fixed costs= $61,300.

Annual interest expense of $24,500. The annual depreciation is $25,200 and the tax rate is 34 percent.

<u>We need to determine the operating cash flow:</u>

Sales= 262,100

Total variable cost= (144,000)

Contribution margin= 118,100

Total fixed costs= (61,300)

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Interest= (24,500)

EBIT= 7,100

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Operating cash flow= 29,886

7 0
3 years ago
John Daniel opened a medical practice in Sacramento, California, and had the following transactions during the month of January.
spayn [35]

Answer:

Explanation:

The journal entries are shown below:

1. Cash A/c Dr $34,000

       To Common stock A/c $34,000

(Being the cash is received in exchange of common stock)

2. Medical supplied A/c Dr $17,000

          To Account payable A/c $17,000

(Being the medical supplies are purchased on account)

3. Cash A/c Dr $1,600

        To Service Revenue A/c $1,600

(Being the cash is received for service performed)

4. Office Rent Expenses A/c Dr $3,000

           To Cash A/c $3,000

(Being the office rent expense is paid for cash)

5. Accounts Receivable A/c Dr $7,000

            To Service revenue A/c $7,000

(Being the service revenue is recorded)

4 0
3 years ago
The​ full-employment level of employment​ is: A. the level of employment when aggregate demand is equal to​ short-run aggregate
natita [175]

Answer:

The correct answer is letter "C": the equilibrium level of employment reached after all wages and prices have fully adjusted.

Explanation:

Full Employment is a situation in which all available human resources are utilized at their highest degree. Each worker is in a job where that worker has his or her more productive use and benefit to the aggregate economy. Full employment is usually achieved in a robust economy when employment reaches its equilibrium point after wages and price adjustments, but can potentially be achieved in any economy.

5 0
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