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Ulleksa [173]
3 years ago
6

Ortiz Co. produces 5,000 units of part A12E. The following costs were incurred for that level of production: Direct materials $

55,000 Direct labor 160,000 Variable overhead 75,000 Fixed overhead 175,000 If Ortiz buys the part from an outside supplier, $40,000 of the fixed overhead is avoidable. Reference: Ref 7-3 If the outside supplier offers a unit price of $68, net income will increase (decrease) by:_______.
Business
1 answer:
Archy [21]3 years ago
8 0

Answer:

Net income decreases by $10,000

Explanation:

                                                                          5,000 units

                                                     Make            Buy    

Direct materials                         $55,000

Direct labor                                $160,000

Variable overhead                     $75,000

Fixed overhead                          $175,000     $135,000 ($175,000-$40,000)

Cost to purchase (68*5000)     <u>                </u>     $<u>340,000</u>

Total cost                                    <u>$465,000</u>   <u>$475,000</u>

Cost lost = $465,000 - $475,000

Cost lost = -$10,000

So, Net income decreases by $10,000

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N the united states, the control of the money supply is the responsibility of the:____.
lutik1710 [3]

N the united states, the control of the money supply is the responsibility of the Federal Reserve System.

The Federal Reserve System is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial crises led to a desire for centralized control of the monetary system to alleviate crises. financial crisis.

The Federal Reserve System provides the country with a secure, flexible, and stable monetary and financial system. The main functions of the Fed include conducting national monetary policy, supervising and regulating banks, maintaining financial stability, and providing banking services.

Learn more about Federal Reserve System here: brainly.com/question/7798250

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8 0
1 year ago
The capital allocation line can be described as the:.
juin [17]

Answer:

What Is the Capital Allocation Line (CAL)? The capital allocation line (CAL), also known as the capital market link (CML), is a line created on a graph of all possible combinations of risk-free and risky assets. The graph displays the return investors might possibly earn by assuming a certain level of risk with their investment.

Explanation:

3 0
2 years ago
Expensive department stores market service and atmosphere while less expensive stores market location and perceived lower prices
melisa1 [442]

Answer: Monopolistic competition

Explanation:

Monopolistic competition is described as a competition between firms where they offer similar services but not the same or exact services. This competition is seen in industries where differentiation is possible, example of such industries are restaurant, hairdressers, clothing, TV programs.

7 0
3 years ago
Waterway Industries purchased a depreciable asset for $837300 on January 1, 2018. The estimated salvage value is $84000, and the
murzikaleks [220]

Answer:

$222,100

Explanation:

Cost = $837,300

Residual value = $84,000  

Useful life = 9 years  

Now,  

Annual straight line depreciation = \frac{Cost-Residual Value}{Useful life}  

Annual straight line depreciation = \frac{837,300 - 84,000}{9}  

Annual straight line depreciation = \frac{753,300}{9}  

Annual straight line depreciation = $83,700

Accumulated depreciation for three years i.e., 2018, 2019 and 2020 would be:

Accumulated depreciation = 3 × $83,700

Accumulated depreciation = $251,100

Book value (at the end of year 2020) = Cost - Accumulated depreciation  

Book value (at the end of year 2020) = $837,300 - $251,100

Book value (at the end of year 2020) = $586,200

Revised useful life = 5 years

No. years asset has been used = 3 years

Remaining useful life = 2 years

Revised salvage value = $142,000

Therefore, depreciation expense for the remaining three year would be:

Revised depreciation expense = \frac{Book value at the end of 2020 - Revised residual Value}{Remaining useful life}  

Revised depreciation expense = \frac{586,200 - 142,000}{2}  

Revised depreciation expense = \frac{444,200}{2}

Revised depreciation expense = $222,100

5 0
3 years ago
Eric and Katie, who are married, jointly own a house in which they have resided for the past 17 years. They sell the house for $
Elodia [21]

Answer:

C) $0 $285,000

Explanation:

The §121 exclusion establishes that homeowners can exclude from their capital gains taxes the sale of their property for a maximum of $250,000 gain (or $500,000 for joint filers) if they meet two criteria:

  • they owned the property for at last 5 years
  • they use the property as main residence for at least 2 years (they can aggregate time periods).

So if Eric and Katie use the §121 exclusion they wouldn't pay any capital gains tax ($500,000 is higher than $375,000).

If they decide to forgo the §121 exclusion, then they will have to pay taxes for a gain of:

capital gain = net sale price - asst basis

capital gain = ($375,000 - $10,000) - $80,000 = $365,000 - $80,000 = $285,000

8 0
3 years ago
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