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blondinia [14]
3 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]3 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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In the short-run, the Sure-Screen T-Shirt Company is producing 500 units of output. Its average variable costs are $2.00 and its
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Answer:

the correct answer is $1,250

Explanation:

(The average variable costs + the average fixed costs) *  Production units

             =

The firms total costs

$2.00 + $0.50 =$2.50

$2.50 * 500= $1,250

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8 0
3 years ago
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Rom4ik [11]

Answer:

D) generates the highest contribution margin per stamping machine hour

Explanation:

Since the stamping machine is Kinsi's constrained resource, or bottleneck resource, in order to maximize its profit, the company should manufacture the products that maximize the utility of the stamping machine. The product that maximize the utility are the one that have the highest contribution margin. Therefore Kinsi must produce the products that have the highest contribution margin per stamping machine hour.

8 0
3 years ago
Who is responsible for making the workplace free of harassment and discrimination?
MArishka [77]

Answer:

The employer

Explanation:

because use they are replaceable for their employees to be treated well and equally.

5 0
1 year ago
Which customers are typical for the Agriculture, Food, and Natural Resources career cluster?
tatyana61 [14]
Chicken wing chicken wing hot dog and bologna
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Accumulated Depreciation and Depreciation Expense are classified, respectively, as _____. (A) asset, contra liability (B) expens
andrew-mc [135]

Answer:

(D) contra asset, expense

Explanation:

Accumulated depreciation is a contra asset. When preparing ledger accounts, it will be credited hence will have a credit balance.It is also recorded in the balance sheet. On the other hand, depreciation expense is considered an operating expense. It is included as an item in the income statement when calculating a business's net income.

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