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frozen [14]
3 years ago
7

Part E14 is used by M Corporation to make one of its products. A total of 19,000 units of this part are produced and used every

year. The company's Accounting Department reports the following costs of producing the part at this level of activity: Per Unit Direct materials $ 4.10 Direct labor $ 8.70 Variable manufacturing overhead $ 9.20 Supervisor's salary $ 4.60 Depreciation of special equipment $ 3.00 Allocated general overhead $ 8.20 An outside supplier has offered to make the part and sell it to the company for $29.50 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally. In addition, the space used to make part E14 could be used to make more of one of the company's other products, generating an additional segment margin of $31,000 per year for that product. The annual financial advantage (disadvantage) for the company as a result of buying part E14 from the outside supplier should be:
Business
1 answer:
Gennadij [26K]3 years ago
5 0

Answer: ($24100)

Explanation:

The annual financial advantage (disadvantage) for the company goes thus:

The relevant cost to produce will be:

= ($4.10 × 19,000) + ($8.70 × 19,000) + ($9.20 × 19,000) + ($4.60 × 19,000) + $31,000

= $77900 + $165300 + $174800 + $87400 + $31000

= $536,400

The relevant costs to buy will be:

= 19,000 × $29.5

= $560,500

Since the relevant cost to buy is more than the relevant cost to produce, then the financial disadvantage will be:

= $560500 - $536,400

= $24,100

The answer is ($24,100)

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TRUE.

The labor-supply curve is affected by the trade-off between labor and leisure.

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2 years ago
You have developed the following data on three stocks: Stock A has a standard deviation of .15 and a Beta of .79. Stock B has a
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Answer:

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The answer is A and B respectively

Explanation:

The standalone risk or standard deviation of the stocks is alleviated for a well diversified investor  . So, in that case, the relevant risk would be the market risk or the beta.

When you see in isolation, relevant risk would be the standard deviation.

Therefore, as a risk minimizer : Stock A  has the lowest standard deviation, thus, it should be chosen, if it is to be held in isolation . Also stock B  has the lowest beta, thus,it should be chosen, if it is to be held as part of a well - diversified portfolio.

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A certain production possibilities frontier shows production possibilities for two goods, jewelry and clothing. Which of the fol
svetoff [14.1K]

Answer:

A certain production possibilities frontier shows production possibilities for two goods, jewelry and clothing. The following concepts can not be illustrated by this concept:

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Explanation:

  • A Production Possibilities Frontier also known as the Production Possibility Curve or Transformation Curve. This curve illustrates a country or a business is utilizing its resources effectively by showing the point at which that country or business is producing its products efficiently.
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Referral is defined as the situation were counselors make recommendations of where else a client might seek treatment. This can happen if counselors cannot accept the client for some reason or if the client's needs have changed. Something that must be said is that the reasons must be appropriate, and a difference in values is not.

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Answer:

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