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Lana71 [14]
2 years ago
6

A company manufactures various sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $67

per unit (100 bottles), including fixed costs of $22 per unit. A proposal is offered to purchase small bottles from an outside source for $35 per unit, plus $5 per unit for freight. Prepare a differential analysis dated March 30 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles, assuming that fixed costs are unaffected by the decision. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Business
1 answer:
VLD [36.1K]2 years ago
6 0

Answer:

The company should buy from an outside source rahter than manufacturing because each bottle manufactured costs $5 more.

Explanation:

Differential Analysis

                                                          Make            Buy

Manufacturing Cost per bottle         $ 67

Purchasing Cost per bottle                                  $35

Freight per bottle                                                  $ 5

<u>Fixed Costs                                                            $ 22   </u>

<u>Total                                                   $ 67              $62   </u>

<u />

The company should buy the bottles from the  outside source because the manufacturing costs are higher than the purchasing costs and the fixed costs.

The fixed costs are the irrelevant costs that will continue whether bottles are manufactured or purchased.

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Answer:

$2 per unit per year

Explanation:

The calculation of the inventory carrying cost per unit per year is shown below:

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It is computed By dividing the total annual inventory cost from the economic order quantity, in order to get the inventory carrying cost

Therefore, the first option is correct

3 0
3 years ago
Sunland Corporation purchased a limited-life intangible asset for $468000 on May 1, 2019. It has a useful life of 10 years. What
Jobisdone [24]

Answer: $124800

Explanation:

First, we have to calculate the ammortization expense which will be:

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8 0
2 years ago
2. Using the 3-x-3 Writing Process as a Guide
Alexandra [31]

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6 0
3 years ago
Nstead of polling all faculty members in the business​ department, Michael wants to simply use a list of testing methodologies u
Svetllana [295]

Answer:

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3 0
3 years ago
Read 2 more answers
On November 1, 20X1, a company signed a $200,000, 12%, six-month note payable with the amount borrowed plus accrued interest due
ozzi

Answer:

$8,000

Explanation:

The computation of the interest expense is shown below:

= Note payable × interest rate × number of months ÷ total number of months -  Note payable × interest rate × number of months ÷ total number of months

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We assume the accounts are closed on December 31

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=  $200,000 × 12% × 4 months ÷ 12 months

= $8,000

6 0
3 years ago
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