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Lorico [155]
3 years ago
9

Manson Industries incurs unit costs of $6 ($4 variable and $2 fixed) in making an assembly part for its finished product. A supp

lier offers to make 15,000 of the assembly part at $5 per unit. If the offer is accepted, Manson will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Manson will realize by buying the part.
Business
1 answer:
vlabodo [156]3 years ago
3 0

Answer:

The decision should be to make the part

Explanation:

Variable cost of manufacturing = 15000x4 = 60000

Fixed cost of manufacturing = 15000 x 2 = 30000

Purchase cost = 15000x5 = 75000

Total annual cost of making = 60000 + 30000 = $90000

Total annual cost of buying is 30000 + 75000 = $105000

90000 - 105,000 = -15000

This shows that manson's cost savings would decrease by -15000

So instead of buying, it is better to make.

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There is one tax infraction that incurs a penalty calculated as 15% of the amount of tax owed per month with a maximum penalty o
Anit [1.1K]

Answer:

Fraud-Late Filing Penalty

Explanation:

The tax infraction that incurs a penalty calculated as 15% of the amount of tax owed per month with a maximum penalty of 75% is the Fraud-Late Filing Penalty.

Fraud-Late Filing Penalty is the <u>penalty for filing late if a taxpayer did not file on time due to fraud</u>.

<u>The penalty is 15% of the amount of tax that should have been reported on the tax return</u> and an additional 15% for each additional month or part of a month that the taxpayer didn't file a return. <u>The penalty cannot exceed 75% of the unpaid tax.</u>

3 0
3 years ago
Which of the following is a reason for involving in decision making the people who are going to be affected by its results?The d
Assoli18 [71]

They will be more accepting of losses and failures if they are involved from the start.

Answer: Option D

<u>Explanation:</u>

Decision Making is the process where certain alternatives are set by the people who are involved in making a decision about achieving or reaching at a particular thing.

The people who are going to be affected by the result, it is very important to involve them in making the decisions so that if any failure or loss occurs during the working, the people accept it. If they are not involved in the process, they might not take the result very positively.

3 0
4 years ago
Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs $ 5,870,000
Elenna [48]

Answer:

$2.80 per chair

$2.25 per table

Explanation:

If cost is assigned at a rate based on direct labor hours, the total disposal cost for chairs and tables is, respectively:

D_c=\frac{254,000}{16,400+254,000}*\$630,000=\$591,789.94\\D_t=\frac{16,400}{16,400+254,000}*\$630,000=\$38,210.06\\

The respective disposal cost per unit is:

C = \frac{\$591,789.94}{211,000}=\$2.80/chair\\ T=\frac{\$38,210.06}{17,000}=\$2.25/ table

5 0
3 years ago
Read 2 more answers
The deadweight loss from a tax is likely to be greater with a good that has:
Alona [7]

Answer:

A. -many substitute

Explanation:

Deadweight loss is inefficiency that occurs as a result of taxation. It's the change in production or consumption as a result of tax.

If tax is imposed on a good with many substitutes, the deadweight loss would be greater because consumers can easily shift consumption to another good that is cheaper.

If a good has inelastic supply or demand, the deadweight loss is less because consumers and producers do not change quantity demanded and supplied if prices increase as a result of tax.

I hope my answer helps you.

4 0
3 years ago
The manager for a growing firm is considering the launch of a new product. If the product goes directly to market, there is a 40
julia-pushkina [17]

Answer:

1. Calculate the NPV for each option available for the project. (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars, e.g. 1,234,567.)

  • go to market now = $744,000
  • focus group = $852,000
  • consulting firm = $916,000

2. Which action should the firm undertake?

  • A. Consulting firm

The NPV is higher than the rst of the options.

Explanation:

expected payoffs:

  • option 1 (go to market now) = (40% x $1.86 million) + 0 = $744,000
  • option 2 (focus group) = (55% x $1.86 million) + 0 = $1,023,000
  • option 3 (consulting firm) = (70% x $1.86 million) + 0 = $1,302,000

expected NPVs:

  • option 1 (go to market now) = $744,000
  • option 2 (focus group) = $1,023,000 - $171,000 = $852,000
  • option 3 (consulting firm) = $1,302,000 - $386,000 = $916,000

go to market now

5 0
3 years ago
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