1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
d1i1m1o1n [39]
3 years ago
7

Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $9.90; direct labor, $23.90, a

nd overhead, $15.90. An outside supplier has offered to sell the product to Wheeler for $45.44. If Wheeler buys from the supplier, it will still incur 40% of its overhead cost. Compute the net incremental cost or savings of buying.
Business
2 answers:
Dmitry [639]3 years ago
4 0

Answer:

$2.1 per unit

Explanation:

The total cost per unit would be

= Direct materials per unit + direct labor per unit + overhead cost per unit

= 9.90+23.90+15.90

= $49.7

Purchase price + overhead cost

=45.44 + 15.90 x 40%

= $51.8

The difference would be

= $51.8 - $49.7

= $2.1

The difference between both values is the net incremental cost or savings of buying.

Tasya [4]3 years ago
3 0

Answer:

Net incremental cost of buying                = $2.1 per unit

Explanation:                                                

                                                                            $/unit

Relevant variable cost of production

= 9.90 + 23.90 + (60%*15.90)=                       43.34

External purchase price                                  <u>45.44</u>

Net incremental cost of buying                           <u>2.1 </u>

Note the only 60% of the overhead are relevant, the balance of 40% would still be incurred whether the the product is produced internally or purchased from outside

Net incremental cost of buying = $2.1 per unit

You might be interested in
assuming that prices rise over time, which inventory cost flow assumption will result in the lowest ending inventory?
Nadya [2.5K]

Answer: LIFO

Explanation:

8 0
2 years ago
What is the economic problem
Greeley [361]

Answer:

The problem of deciding or choosing how to satisfy unlimited wants with limited resources is called economic problem

7 0
3 years ago
A country has a noninstitutionalized population of 243 million people. out of that number, 38 million are under the age of 16 70
rosijanka [135]

Answer:

The answer is 60%

Explanation:

Labor force is the total number of people that have job(employed) and the number of people who are willing, able and actively searching for job(unemployed) in a population.

Labor force participation rate is calculated by dividing the labor force by the noninstitutionalized population.

Labor force = employed + underemployed + unemployed

= 96 + 31 + 8

=135 million

So we have:

(135 ÷ 243) x 100 percent.

60% (the nearest whole percentage)

3 0
2 years ago
In a​ make-to-order system, when a customer places a request for a product or service with a​ producer,
Mashutka [201]
<span>A work order is created as soon as the customer places the request for a product or service. Since the manufacturing or the creation of the item begins only after order is made, all the resources and the raw materials should be in place well before time.</span>
3 0
2 years ago
Susan Sheppard, Creative Design Manager at Word-of-Mouth Marketing Group, is consistently bullied by her colleague, Alexandra Wo
Vikentia [17]

Answer:

Negative reinforcement

Explanation:

Negative reinforcement is a behavioral psychology principle that occur when one's action allows  him / her to escape an unfavorable action before it occurs.

It is mentioned in the scenario that Sheppad  is being bullied and criticized  by Alexandra  , being the boss's sister .

Susan's idea of completing all work including the extras is a behavior intentionally put up to escape the constant unpleasant stimuli from Sheppad.

6 0
3 years ago
Other questions:
  • Effect of junk status on unemployment
    15·1 answer
  • A soybean farmer sells soybeans in a perfectly competitive market and hires labor in a perfectly competitive market. The market
    7·1 answer
  • The fair value of net identifiable assets of a reporting unit of Y Company is $270,000. The carrying value of the reporting unit
    11·1 answer
  • The common stock of Securetech Corporation consistently sells at a market price of 20 times earnings, i.e., at a p/e ratio of 20
    15·1 answer
  • The March 2011 announcement that AT&amp;T was acquiring T-Mobile USA from Deutsche Telekom is a _________ acquisition and is int
    7·1 answer
  • Pizza Hearth is in the process of deciding on the mode of entry into the Eastern European countries. Which phase of the internat
    12·1 answer
  • The June 1 work in process inventory consisted of 4,100 units with $14,700 in materials cost and $12,300 in conversion cost. The
    12·1 answer
  • Effects of internal migration to the labour force​
    14·1 answer
  • State any THREE activities that took place during the forming stage ​
    10·2 answers
  • George borrowed $1,895. 50 for two years. The total amount he repaid was $2,189. 38. How much interest did he pay for the loan?.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!