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3 years ago

Each of the following is a disadvantage of buying rather than making a component of a company's product except that Select one:

Business

1 answer:

shtirl [24]3 years ago

6 0

Answer:

The correct answer is letter "C": Profitable product lines may be dropped.

Explanation:

The decision of making a product in-house or relying on an outsourcing manufacturer is evaluated mainly by comparing the costs that handling a new production line carries. While outsourcing can save a company a great amount of money in labor, equipment, materials, and knowledge, quality control is not managed directly.

However, a new line of components in-house implies incurring in most costs that could conflict the production of existing profitable product lines that could see their numbers reduce gradually until the product drops.

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At the Bourg Company, a primary ______ is to increase the monthly revenue by 10%. Bourg considers revenue targets a key part of

mr_godi [17]

Considering the subsequent description given in the question, At the Bourg Company, a primary sales goal is to increase the monthly revenue by 10%.

This is evident in the fact that Bourg considers revenue targets a vital part of the company strategy. Here, the revenue of a company is derived from sales.

Also, given that the targets at the Bourg Company are stated in clear, precise, and measurable terms, and they always specify a time frame for completion, this is an example of a sales goal.

Sales goal is a term used in business management to describe the defined goals for a firm's sales team.

Sales goals could be expressed as increasing revenue by 13% in a year or improving customer retention by 18%.

Hence, in this case, it is concluded that the correct answer is "sales goals."

Learn more here: brainly.com/question/23162020

6 0

3 years ago

The economic effect of an expense is incurred when the benefit expires or is used up not when cash is paid true or false

12345 [234]

Answer:

false

Explanation:

4 0

3 years ago

Morgan Sondgeroth Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations

stepan [7]

Answer:

Part A) Book Value = $1,080,000

Part B) Book Value = $1,050,000

Explanation:

Part 1: To compute the book value of the common stock at December 31, 2020

To do this, we consider both the preferred and common stock values as follows:

Stockholder's equity:

Preferred Stock = $500,000

Common stock = $750,000

Retained earnings: To calculate retained earnings we need to deduct dividends in arrears to prefered stock holders and then ascribe the remaining value to retained earnings.

Dividend in Arrears= 3 years @ 8% interest per year

= 500,000 x 0.08 x 3= $120,000

Remaining earnings for available to common share holders

= Retained earnings balance- dividend paid to prferred stock holders.

=$800,000 (net income for 2020)- $40,000 (net loss for 2019) - $260,000 (net loss for 2018)

= $800,000-$40,000-$260,000

= $500,000 - Dividend in arrears

= $500,000- $120,000

= $380,000

Book Value of Stockholders' equity

Common Stock equity + Balance of retained earnings

= $700,000 + $380,000

= $1,080,000

The book value per share = $1,080,000/ outstanding shares

= $1,080,000/750,000= $1.44

Part 2: To compute the book value of the common stock at December 31, 2020 Preference stock has liquidating value of $106 per share

Stockholder's equity:

Preferred Stock = $500,000

Preferred stock liquidating premium = (106-100) x 5000

= $6 x 5000= $30,000

Common stock = $750,000

Retained earnings: To calculate retained earnings we need to deduct dividends in arrears to prefered stock holders and then ascribe the remaining value to retained earnings.

Dividend in Arrears= 3 years @ 8% interest per year

= 500,000 x 0.08 x 3= $120,000

Remaining earnings for available to common share holders

= Retained earnings balance- net losses from previous years - dividend paid to prferred stock holders - liquadating premium to preferred stock

=$800,000 (net income for 2020)- $40,000 (net loss for 2019) - $260,000 (net loss for 2018)

= $800,000-$40,000-$260,000

= $500,000 - Dividend in arrears - liquidating

= $500,000- $120,000- $30,000

= $350,000

Book Value of Stockholders' equity

Common Stock equity + Balance of retained earnings

= $700,000 + $350,000

= $1,050,000

The book value per share = $1,080,000/ outstanding shares

= $1,050,000/750,000= $1.4

6 0

4 years ago

Houston Houston Office Equipment manufactures and sells metal shelving. It began operations on January 1,2014.

Vanyuwa [196]

Solution:

1) If 2 pounds of direct materials are used to make one unit of finished product, then 115,000 units × 2 lbs, or 230,000 lbs were used at $0.65 per lb of direct materials i.e. ($149,500 ÷ 230,000 lbs.).

The Formula for calculating Ending Direct Material Cost = [Ending Direct Material Inventory * Cost per lb]

Therefore, Ending Direct Materials cost is 1,900 lbs. * $0.65 = $1,235.

2) Manufacturing Costs for 115,000 units

Variable Fixed Total

Direct materials costs – $149,500 + Direct manufacturing labor costs – 31,500 + Plant energy costs – 3,000 + Indirect manufacturing labor costs

(Variable + Fixed) i.e. 15,000+12,000 - 27,000 + Other indirect manufacturing costs

(Variable + Fixed) i.e. 10,000+32,000 - 42,000

So, Cost of goods manufactured - $253,000

Average unit manufacturing cost = $253,000 ÷ 115,000 units

= $2.20 per unit

Finished Goods Inventory at Dec. 31, 2014 = $15,400

Therefore Finished goods inventory total units = $15400 / $2.20

= 7,000 units

3) Units sold in 2014 = Beginning inventory + Production – Ending inventory

= 0 + 115,000 –7,000

= 108,000 units

Therefore, Selling price in 2014 = Total Revenues / Units Sold

= $583,200 ÷ 108,000

= $5.40 per unit

4) Operating Income for 2014

Revenues(108,000 units sold × $5.40) = $583,200

Cost of units sold:

Beginning finished goods, Jan. 1, 2014 = $0

Cost of goods manufactured = $253,000

Cost of goods available for sale = $253,000

Ending finished goods, Dec. 31, 2014 = $15,400

So, Cost of Units sold ($253000 - $15400) = $237,600

Therefore, Gross margin = Total Revenue - Cost of Units Sold

= $583,200 - $237,600

= $345,600

Operating costs: Marketing, distribution, and customer-service costs

Variable + Fixed i.e. ($126,000 + $48,000) = $174,000

Administrative costs = $57000

Total Operating Costs = $231,000

Therefore Operating income for 2014 = $345600 - $231,000

= $114600

3 0

3 years ago

We observe that total costs increase from $1,500 to $1,800 when a firm increases output from 40 to 50 units. Which of the follow

iren2701 [21]

Answer:

c. Fixed Cost = $300

Explanation:

Because marginal cost is constant we can find the variable cost per unit and then subtract the total variable cost from the total cost in order to find the fixed cost. The firms total cost increase $300 (from 1500 to 1800) when output increases by 10 units (from 40 to 50), so the variable cost per unit is 300/10=30.

Now to calculate the total variable cost we will multiply variable cost per unit by the number of units.

50*30= 1500

Now we will subtract 1500 from 1800 in order to find the fixed cost.

1800-1500=300

Fixed cost is $300.

7 0

3 years ago