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Neko [114]
3 years ago
14

Outsourcing (Make-or-Buy) Decision

Business
1 answer:
ivann1987 [24]3 years ago
7 0

Answer:

If the company makes the units, it will save $7,000 per period.

Explanation:

Giving the following information:

Make in-house:

Number of units= 16,000

Variable cost per unit= $22

<u>Avoidable fixed cost per unit= $3</u>

Buy:

Number of units= 16,000

Buying price= $27

Rent= $25,000

<u>First, we will determine the total cost of each option:</u>

Make:

Total cost= 16,000*(22 + 3)= $400,000

Buy:

Total cost= 16,000*27 - 25,000= $407,000

If the company makes the units, it will save $7,000 per period.

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Not at all because you're crediting the person who actually is the owner of the information. But if they asked you to put it in your own words, then I suppose it counts as plagiarism.

6 0
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Answer:

  1. Firms are very small relative to the market. PERFECT COMPETITION
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John was recently hired by Backstreet Books. At the beginning of the first day on the job, his store manager handed him a small
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<u>compliance-based ethics.</u>

Explanation:

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During January, its first month of operations, Marigold Company accumulated the following manufacturing costs: raw materials $5,
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The journal entries are as follows

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(Being the raw material is purchased on account)

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