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blondinia [14]
2 years ago
8

Epsilon Co. can produce a unit of product for the following costs: Direct material $ 8 Direct labor 24 Overhead 40 Total costs p

er unit $72 An outside supplier offers to provide Epsilon with all the units it needs at $60 per unit. If Epsilon buys from the supplier, the company will still incur 40% of its overhead (this means that no matter what Epsilon does, 40% of the overhead costs will remain). Epsilon should choose to:
Business
1 answer:
mylen [45]2 years ago
8 0

Answer:

It is cheaper to make the units in-house.

Explanation:

Giving the following information:

Make in-house:

Direct material $ 8

Direct labor 24

Overhead 40

Total costs per unit $72

Buying price= $60

<u>We need to determine which option provides the lower cost. Because 40% of overhead will remain constant, we have to take it out of the equation.</u>

<u>Production cost:</u>

Direct material $ 8

Direct labor 24

Overhead= 40*0.6= 24

Total production cost= $56

It is cheaper to make the units in-house.

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kondor19780726 [428]

The correct answers for the following questions are:

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An extranet is the type of network that will best assist the firm in receiving and managing documents from clients.

Therefore, Option D is correct.

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The file server should be placed in an Encryption Device to allow safety while clients are signing into for document management.

Therefore, Option B is correct.

<h3>What is an Operating cost?</h3>

This means the ongoing expenses that are incurred from the normal day-to-day of running a business.

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6 0
1 year ago
1. Select why manufacturers use a predetermined overhead rate to apply manufacturing overhead to their jobs. (You may select mor
Lady bird [3.3K]

Answer:

The correct answer is: Manufacturers use predetermined overhead rates to allocate to production jobs the production costs that are not directly traceable to specific jobs.

Explanation:

If we are able to trace a cost directly to a product we will not include it in manufacturing overhead. Manufacturing overhead was created to allocate costs that are not directly traceable to a product. It helps manufacturers to allocate costs with certain precision.

3 0
3 years ago
What is 450x12 PLZ HELP ME I NEED HELP
bulgar [2K]

Answer:

5400

quick and easy  thank u

6 0
2 years ago
Suppose there are five suppliers of ice cream in the town of Summerville. When the price of ice cream is $2 per scoop, Firm A is
victus00 [196]

Answer:

the market quantity supplied is less than 250 scoops when the price is $2 per scoop

Explanation:

When price is $2, the total quantity supplied = 20 + 50 + 35 + 100 + 40 = 245

At the price $2, the total quantity supplied is less than 245

3 0
3 years ago
Selling a product abroad for less than the cost of production is referred to as
sweet-ann [11.9K]
The answer would be A because they are basically dumping  the product on the other country
3 0
3 years ago
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