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GarryVolchara [31]
3 years ago
10

An outside supplier has offered to provide Maxter Corp with the 10,000 subcomponents at a $65 per unit price. If Maxter Corp acc

epts the outside offer, what will be the effect on short-term profits? Group of answer choices $200,000 increase $150,000 decrease No change $50,000 increase
Business
1 answer:
Irina18 [472]3 years ago
3 0

Answer:

Option b ($150,000 decrease) is the correct answer.

Explanation:

Given:

Fixed manufacturing overhead,

= $65

Units,

= 10,000

According to the question,

Current cost is:

= 70\times 10,000

= 700,000 ($)

The expected cost will be:

= Fixed \ manufacturing \ overhead+(Units\times Purchase \ price)

By substituting the values, we get

= (65\times 10000)+200000

= 650000+200000

= 850000

then,

= 850000-700000

= 150000 ($)

Thus the above is the right answer.

You might be interested in
Gabe industries sells two products, basic models and deluxe models. Basic models sell for $44 per unit with variable costs of $2
Dima020 [189]

Answer:

See below

Explanation:

Basic models Deluxe models

Sales price $44 $54

Variable costs $25 $25

Contribution margin $9 $29

×

Sales mix 1 3

Total contribution margin $9 $87

Contribution margin per unit = $9 + $87 = $96

Weighted contribution margin= Total contribution margin / Units

= $96 / $4

= $24

Break even point = Total fixed costs / Weighted contribution margin

Break even point = $1,441 / $24

Break even point = 60 units

•Basic units = 60 × 63.33% = 38 units of basic

•Deluxe units = 60 × 43.33% = 26 units of Deluxe units

6 0
3 years ago
The emergency banking relief act helped solve the banking crisis by
max2010maxim [7]

Answer:

providing banks that the government deemed as "sound financial footings" an operating license.

Explanation:

The emergency banking relief act helped solve the banking crisis by providing banks that the government deemed as "sound financial footings" an operating license. This allowed the banks to reopen and continue business as well as providing the public with ease of mind and allowing them to slowly rebuild their trust on towards the banking system.

If you have any more questions feel free to ask away at Brainly.

6 0
3 years ago
what is an everyday example of scarcity that demonstrates why scarcity is a basic economic problem that faces society?
zhannawk [14.2K]

of every day scarcity could it be how the desert doesn't really have water so the desert has a scarcity of water scarcity is a basic economic problem that Society faces because the world sometimes runs out of things that we need so certain people have to make loopholes to get to get around them another example is how during the coronavirus we had a scarcity of sanitizer Clorox wipes bleach and toilet paper

7 0
3 years ago
Question Content Area The journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system wo
Tanya [424]

The journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be (D)

Jan. 1    Inventory                    1,500

                     Cash                                              1,500

<h3>What are journal entries?</h3>
  • A journal entry is an act of keeping or producing records of any economic or non-economic transaction.
  • An accounting journal, which shows a company's debit and credit balances, records transactions.
  • The journal entry can be made up of multiple records, each of which is either a debit or a credit.
  • Otherwise, the journal entry is termed unbalanced if the sum of the debits does not equal the total of the credits.

Inventory purchase journal entry:

  • Say you purchase $1,000 worth of inventory on credit.
  • Debit your Inventory account $1,000 to increase it.
  • Then, credit your Accounts Payable account to show that you owe $1,000.
  • Because your Cash account is also an asset, the credit decreases the account.

Therefore, the journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be (D)

Jan. 1    Inventory                    1,500

                     Cash                                              1,500

Know more about journal entries here:

brainly.com/question/14279491

#SPJ4

The question you are looking for is here:

The journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be

(A) Jan. 1    cash                    1,500

                     Account receivables                    1,500

(B) Jan. 1    Purchases                    1,500

                     Account payable                          1,500


(C) Jan. 1    Inventory                    1,500

                     Office Supplies                             1,500

(D) Jan. 1    Inventory                    1,500

                     Cash                                              1,500

3 0
2 years ago
Flagler Corporation takes eight hours to complete the setup process for a certain electrical component, with the setup cost aver
marshall27 [118]

Answer:

The question is missing the below options:

$0.

$150.

$300.

$900.

$1,200.

The answer to the question is $300

Explanation:

In determining the amount of non-value adding cost,Flagler number of hours used in setup process is compared to that of its competitor.As a result of comparison, it came to light that Flagler used two more hours in setup process.

The extra hours do not necessarily make Flagler better,instead it makes worse off, as extra $300(2hrs*$150) would have to be incurred without any benefits derived.

This extra costs that do not make the organization better off and  do not add value,so it the non-value adding costs.

(8hrs-6hrs)*$150=$300

3 0
3 years ago
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