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
nignag [31]
3 years ago
7

Gilberto Company currently manufactures 40,000 units per year of one of its crucial parts. Variable costs are $1.60 per unit, fi

xed costs related to making this part are $40,000 per year, and allocated fixed costs are $30,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $2.70 per unit guaranteed for a three-year period.
Required:
a. Calculate the total incremental cost of making 40,000 and buying 40,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier?
Business
1 answer:
mestny [16]3 years ago
5 0

Answer:

It is cheaper to make the part. In three years the company will save $12,000.

Explanation:

Giving the following information:

Units= 40,000

Variable costs= $1.60 per unit

Fixed costs= $40,000 per year

Gilberto is considering buying the part from a supplier for a quoted price of $2.70 per unit guaranteed for three years.

We need to calculate the total cost of making and buying the part.

Make in-house:

Total cost= 1.6*40,000 + 40,000= $104,000

Buy:

Total cost= 40,000*2.7= $108,000

It is cheaper to make the part. In three years the company will save $12,000.

You might be interested in
Tolerance and trust at work place practice<br><br><br>​
rjkz [21]
What’s the question u need help with?
4 0
2 years ago
Of the four attributes of a national or country-specific environment that have an important impact on the global competitiveness
Lelu [443]

Answer:

d. The presence or absence in a nation of supplier industries and related industries that are internationally competitive

Explanation:

Related and supporting industries can be described as upstream and downstream industries which bring about innovation via exchanging ideas.

In an economy, upstream industries are reliable supplier of inputs to a company, while downstream industries assist a company in marketing and distributing its products.

The absence or presence of the related and supporting industries usually have effect on the success of a company in a country.

8 0
3 years ago
Merone Company allocates materials handling cost to the company's two products using the below data:Modular Homes Prefab Barns T
Amiraneli [1.4K]

Answer:

$167,098

Explanation:

The computation of the total materials handling cost allocated to the modular homes is shown below:

= Total material handling cost × expected modular homes ÷ total expected material moves

= $210,420 × 540 ÷ (540 + 140)

= $167,098

6 0
3 years ago
In a sweezy oligopoly, the profit-maximizing level of output occurs where:_____.
hodyreva [135]

In a Sweezy oligopoly, the profit-maximizing level of output occurs where mr=mc.

Paul M. Sweezy created the oligopoly's kinked demand curve in 1939. The model explains how oligopolistic groups behave rather than placing emphasis on how price-output determination occurs.

With an equilibrium output of Q units and an equilibrium price of P, the oligopolist maximizes profits by equating marginal income with marginal cost.

Due to each company's desire to maximize profits, there is frequently intense competition among them when it comes to pricing, production, and promotion.

The main distinction between a monopolist and a perfectly competitive firm is that although for a monopolist, marginal revenue is not equal to the price since changes in output quantity affect the price.

To learn more about monopolists refer to:

brainly.com/question/14055453

#SPJ4

7 0
2 years ago
A Blank______ does not require consumers to do anything other than buy a ticket or fill out a form for a chance to win some type
svetoff [14.1K]

Sweepstakes does not require a consumer to purchase anything aside from the the ticket they will fill out for a chance to win prices.

<h3>What is Sweepstakes?</h3>

Sweepstakes is a form of gambling in which everyone involved in the contest pay a certain amount of money and the winner is awarded with a price or the money contributed.

Therefore, Sweepstakes does not require a consumer to purchase anything aside from the the ticket they will fill out for a chance to win prices.

Learn more about Sweepstakes below.

brainly.com/question/2033774

6 0
2 years ago
Other questions:
  • Jen purchased a condo in naples fl for $699,000. she put 20% down and financed the rest at 5% for 35 years. what are jen's total
    9·2 answers
  • The amount borrowed when taking out a loan
    15·1 answer
  • Your parents' income will be used to determine what your insurance will cost.​
    15·1 answer
  • Procter &amp; Gamble reported the following information for its fiscal year end: On net sales of $57.690 billion, the company ea
    15·1 answer
  • Inflation is best understood as the rate at which __________.
    12·1 answer
  • Which elements do you think need to go in a fire prevention plan?
    14·2 answers
  • Example of business proposal​
    10·1 answer
  • Timing Technology, Inc. manufactures timing devices. During 20x1, 1,500,000 units were completed and transferred to finished-goo
    14·1 answer
  • Statement of Cost of Goods Manufactured and Income Statement
    11·1 answer
  • Which buyer agreement document provides the greatest advantage for you in your relationship with a potential buyer
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!