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Zigmanuir [339]
3 years ago
6

Coronado Industries produces 1000 units of a necessary component with the following costs:

Business
1 answer:
Reika [66]3 years ago
3 0

Answer:

$40,000

Explanation:

Current Cost =   Direct Materials + Direct Labor + Variable Overhead + Fixed Overhead

                                = $20,000 + $9,000 + $3,000 + $7,000

                                = $39,000

Given,

Increase in profit contribution =   $8,000 (If acquired from outside )

No fixed cost overhead Costs Can be reduced, so only profit margin will be reduced

New contribution margin   =    Increase in profit contribution (-) Fixed Cost

                                                    = $8,000 (-) $7,000

                                                    = $1,000

Maximum external price that Ruth Company would be willing to accept to acquire the 1,000 units externally

                 =        Current Cost   + New contribution margin

                 =        $39,000 + $1,000

                 =        $40,000

Maximum external price   = $40,000

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Answer:

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Explanation:

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7 0
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gulaghasi [49]

Answer:

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5 0
3 years ago
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Answer:

A) True

Explanation:

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Which option identifies the type of budget development represented in the following scenario?
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Answer:top approach

Explanation:

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The supply of product X is perfectly inelastic if the price of X increases by _______ and, as a result of the price change, the
konstantin123 [22]

Answer:

c) 10%; stays the same. 

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I hope my answer helps you

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3 years ago
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