Answer:
financial advantage of purchasing from outside vendor = $36,000
Explanation:
outside vendor offers 18,000 units at $40 per unit = $720,000
current production costs (for 18,000 units):
- Direct materials $324,000
- Direct labor $162,000
- Variable manufacturing overhead $36,000
- Fixed manufacturing overhead, traceable $162,000 ($54,000 avoidable)
- Fixed manufacturing overhead, allocated $216,000 (not avoidable)
- Total cost $900,000
total avoidable costs = $576,000
additional revenue generated by freed facilities = $180,000
financial advantage of purchasing from outside vendor = ($576,000 + $180,000) - $720,000 = $36,000
Answer:
decrease
Explanation:
As we know the gross profit is the net of sales and cost of goods sold.
Gross profit = Sales - Coast of Goods Sold
Lowering the price will decrease the sales value because sales is calculated by multiplying selling price per unit to number of units sold.
If we keep the cost of goods sold constant, then decrease in price will directly effect the gross profit and will reduce it too.
Answer:
To make a balance sheet in Excel from T-accounts data follow the below steps.
Explanation:
To make a balance sheet in Excel from T-accounts data follow the below steps.
Add current assets by giving link to the T-accounts data for example click on the cell where Current assets amount is to be added as "Cash" write = in the cell and click on the amount of cash balance available at the T-accounts.
Apply same to all accounts.
Current assets will include cash and supplies, Current liabilities will include notes payable and accounts payable and non-current assets will include land and equipment and common stocks will be added in equity.
Total current assets total will be calculated by writing "=SUM" then select the cells that needs to added together and press enter.
Apply same to all head accounts.
