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Fantom [35]
3 years ago
7

Lock Division of Morgantown Corp. sells 80,000 units of part Z-25 to the outside market. Part Z-25 sells for $40, has a variable

cost of $22, and a fixed cost per unit of $10. The Lock Division has a capacity to produce 100,000 units per period. The Cabinet Division currently purchases 10,000 units of part Z-25 from the Lock Division for $40. The Cabinet Division has been approached by an outside supplier willing to supply the parts for $36. What is the effect on Morgantown's overall profit if the Lock Divisi
Business
1 answer:
Kisachek [45]3 years ago
3 0

Answer:

The effect on Morgantown's overall profit is $140,000 decrease in Morgantown's profits

Explanation:

In order to calculate the effect on Morgantown's overall profit we would have to make the following calculations:

Contribution margin per unit for Lock Division = Selling price – Variable costs = $40 - $22 = $18

Contribution lost by lock division if Cabinet division buys from outside = $18 * 10,000 = $180,000

Cost per unit saved by Cabinet division = $40 - $36 = $4

Total cost saved by cabinet division = $4 * 10,000 = $40,000

Net decrease in profit = Contribution lost – Cost saved = $180,000 - $40,000 = $140,000

Therefore, the effect on Morgantown's overall profit is $140,000 decrease in Morgantown's profits.

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A _____ consists of senior managers representing the business and information technology organizations—to provide guidance and s
34kurt

Answer:

b. project steering team

Explanation:

Project steering team  -

It refers to the member of an organisation or company , who helps to support and guide the project , is referred to as the project steering team .

The team is important for the project success .

These are basically an advisory body of the company , in matters related to project management concerns ,  marketing strategies , company policy , new endeavors and budget .

Hence , from the given information of the question,

The correct term is project steering team .

5 0
3 years ago
Wilder Company manufactures two models of its banjo, the Basic and the Luxury. The Basic model requires 10,000 direct labor hour
OLEGan [10]

Answer:

The inspecting costs should be allocated to the Basic model using ABC costing is $30,600

Explanation:

The computation of the inspecting cost is shown below:

= Total number of basic model inspection + the total number of inspection

where,

Total number of basic model inspection equals to

= Number of units produced ÷ every units produced

= 3,400 units ÷ 100

= $34

And, the total number of inspection equals to

= Total inspection cost ÷ number of inspection

= $84,600 ÷ $94

= 900

The number of inspection includes

= total number of basic model inspection + the total number of luxury model inspection

= $34 + $60 (600 units ÷ 10)

Now put these values to the above formula  

So, the value would equal to

= 900 × $34

= $30,600

7 0
3 years ago
Which of the following statements is correct? Multiple Choice If supply decreases and demand remains constant, equilibrium price
lbvjy [14]

The statement that is correct is D. If supply increases and demand increases, equilibrium quantity will fall.

Demand is the quantity of goods and services that one is willing to buy at a particular price and at a given time.

On the other hand, supply is the quantity of goods that a supplier wants to sell at a given price and time.

It should be noted that in a situation whereby there's an increase in the supply and the demand of a product, this will lead to a reduction in the equilibrium quantity.

Read related link on:

brainly.com/question/24940837

4 0
2 years ago
-What are some of the economic performance indicators?<br><br><br> Can you help me please !!
Greeley [361]

Answer:

i assume you are referring to variable as economic 'indicators'

Economic performance can be measured by a number of goals the government sets. for example, a lower unemployment rate, price stability or economic growth.

In terms of indicators:

economic growth would be indicated by GDP growth

Unemployment (obviously just by the unemployment rate)

And, price stability/inflation would be indicated by the change in CPI (consumer price index) otherwise called the inflation rate.

3 0
3 years ago
Your client, Brooke, decides to start saving for her son's college tuition. Her son was born today and will go to college at age
oksian1 [2.3K]

Answer:

The present value of the total amount that Brooke needs to have saved at the beginning of her son's first year of college is 31.959,13

Explanation:

Tuition Fees after inflation at

Year 18 = 15000* ( 1+6.5%)18 = 46599.8157

Year 19 = 15000* ( 1+6.5%)19 = 49628.8037

Year 20 = 15000* ( 1+6.5%)20 =  52854.6759

Year 21 = 15000* ( 1+6.5%)21 =  56290.2299

Since discount rate = 10%

So discount factor = 1+r = 1+10% = 1.1

Since fees are paid at beginning of period hence

Present Value of Fees = Fees (year 18)/1.1^18 +Fees at Year 19/1.1^19 +Fees at Year 20/1.1^20 + Fees at year 21/1.1^21 = 46599.8157/1.1^18 +  49628.8037/1.1^19 +  52854.6759/1,1^20 + 56290.2299^21 = 31959.13

3 0
3 years ago
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