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
NNADVOKAT [17]
2 years ago
13

Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $21, computed as fol

lows: Direct materials $ 8 Direct labor 5 Variable manufacturing overhead 3 Fixed manufacturing overhead 5 Unit product cost $ 21 An outside supplier has offered to provide the annual requirement of 2,900 of the parts for only $16 each. The company estimates that 80% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. Assume that direct labor is an avoidable cost in this decision. Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:a. $1 disadvantage
b. $1 advantage
c. $2 advantage
d. $4 disadvantage
Business
1 answer:
Len [333]2 years ago
3 0

Answer:

$4 advantage

Explanation:

In this question we need to compare the cost between the relevant cost and the outside supplier cost

The relevant cost is

= Direct material per unit + direct labor per unit + variable manufacturing overhead per unit + fixed manufacturing overhead per unit

= $8 + $5 + $3 + $5 × 80%

= $8 + $5 + $3 + $4

= $20

Since 80% of the fixed manufacturing cost above is eliminated so we considered the same

And, the outside supplier cost is $16

So based on the above calculation, the financial advantage is

= $20 - $16

= $4 advantage

This shows the company should purchased from outside supplier as it saves $4

You might be interested in
1. You will receive a Financial Aid Award Letter... *
Marrrta [24]
After you have completed the FAFSA and applied to colleges
5 0
3 years ago
If you needed financial advice, whom would you ask? Why?
kap26 [50]

Answer: financial advisors

Explanation: A financial advisor can help you create a long-term investing strategy, weigh the pros and cons of different account types, pick mutual funds, rebalance your investing portfolio, and set savings benchmarks to help you reach your long-term goals.

Hope this helped

6 0
3 years ago
Producer surplus is the difference between the _____ price and the minimum price at which a producer would be willing to sell a
gogolik [260]

Answer:

Market

Explanation:

Producer surplus is the difference between the market price and the minimum price at which a producer would be willing to sell a particular quantity.

Producer surplus is known to be the total amount that a producer benefits or gains from producing and selling a quantity of a good at the market price. The total revenue that a producer receives from selling their goods minus the total cost of production equals the producer surplus.

5 0
3 years ago
Consider the following information: Portfolio Expected Return Beta Risk-free 5 % 0 Market 11.2 1.0 A 9.2 1.9 a. Calculate the re
tatiyna

Answer:

The calculations are shown below:

Explanation:

The calculations are shown below:

a. The expected rate of return is  

Return = Risk free return + Beta × (Market return - risk free return)

= 5% + 1.9 ×  (11.20% - 5%)

= 5% + 11.78%

= 16.78%

b. Now the alpha is

Alpha = Actual rate of return - Expected rate of return

         = 9.2% - 16.78%

         = - 7.58%

c. No , the CAPM is not valid as the expected rate of return is more than the actual rate of return

6 0
3 years ago
Kailey James Company is evaluating a capital expenditure proposal that requires an initial investment of $14,900, has predicted
marishachu [46]

Answer:

Year      Cashflow     [email protected]%      PV

                  $                                  $

0             (14,900)          1            (14,900)

1-12          4,000          5.6603    <u>22,640</u>

                                   NPV        <u> 7,740</u>

                                                                                                                                   

Explanation:

In this respect, we need to calculate the discount factor of annual cash  inflows for 12 years at 14 discount rate. For this purpose, present value annuity interest factor will be used since the cash inflows are constant. Then, we will multiply the annual cashflows  by the discount factor so as to obtain the present value of cash inflows. Then, we will deduct the initial outlay from the present value of cash inflows  in order to obtain the net present value of the proposal.  

4 0
3 years ago
Other questions:
  • Country A and country B produce the same consumption goods and capital goods and currently have identical production possibiliti
    12·1 answer
  • On february​ 1, a corporation has 30 comma 00030,000 shares of $ 1$1 par value common stock issued and outstanding. the corporat
    5·1 answer
  • It took you four months to find a job, and you were almost out of money, when you finally landed your position. Today your boss
    15·1 answer
  • PLEASE HELP ASAP
    15·1 answer
  • A firm's marginal cost curve Group of answer choices always has a positive slope. always intersects its average cost curve at it
    5·1 answer
  • On an afternoon that a class meets, you could alternatively study for an exam that will take place in another class the next mor
    8·1 answer
  • Bob at Bob’s Furniture is looking at a perceptual map about customers’ ideas about his products. The attributes customers care m
    8·1 answer
  • You must prepare a return on investment analysis for the regional manager of Fast &amp; Great Burgers. This growing chain is try
    8·1 answer
  • Concord Company purchased equipment for $25200 on December 1. It is estimated that annual depreciation on the equipment will be
    7·1 answer
  • Harry is a citizen and resident of Saudi Arabia. During the current year, Harry never visits the United States, nor does he hold
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!