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matrenka [14]
2 years ago
12

Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $22, computed as fol

lows: Direct materials $ 9 Direct labor 7 Variable manufacturing overhead 1 Fixed manufacturing overhead 5 Unit product cost $ 22 An outside supplier has offered to provide the annual requirement of 7200 of the parts for only $19 each. The company estimates that 80% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. Assume that direct labor is an avoidable cost in this decision. Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:
Business
1 answer:
geniusboy [140]2 years ago
8 0

Answer:

$ 2 per unit on average

Explanation:

Calculation for what the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:

First step is to calculate the Relevant cost of making

Relevant cost of making = 9 + 7 + 1 + ( 5 * 80 % ) Relevant cost of making= $ 21

Now let calculate the Financial advantage of buying

Financial advantage of buying = ( 21 - 19 )

Financial advantage of buying= $ 2 per unit on average

Therefore the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:$ 2 per unit on average

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The residents of Bucktown, Illinois, place their trash at the curb each Wednesday morning to be picked up by Municipal Crews. Ex
svetoff [14.1K]

Answer: 8.56crews

Explanation:

To get critical fractile probability SL,

We stock up the local trash collection capacity.Cost of overstocking by 1 ton =MC = 625/5 = $125Cost of understocking by 1 ton = additional cost of using outside trash pick up = MB = $650-$125 = $5

SL = Prob(RQ) = MB /( MB + MC) = 525/(125 + 525) = 0.8077 appropriate # of crews = 8.56 crews

8 0
3 years ago
Mario spent a total of $87. 33 last week, but did not keep a perfect record of where his money went. Fortunately, Mario does hav
Xelga [282]

it is option A

giv me points

3 0
2 years ago
You work for a firm producing fitness equipment. You have been told that the demand curve for the​ firm's main​ product, a​ mult
kirill115 [55]

Answer:

b. quantity with price as the explanatory variable because the demand curve is linear.

Explanation:

A linear demand curve can be defined as the graphical representation of the relationship between the quantity of goods or services that are being demanded by the consumers and the price of the goods or services at a specific period of time.

Generally, the x-axis of the graph is used to represent the price of the goods or services while the y-axis of the graph is used to represent the quantity of goods or services that are being demanded by the customers at a specific period of time.

In this scenario, You work for a firm producing fitness equipment and have been informed that the demand curve for the​ firm's main​ product, a​ multi-station home​ gym, is linear. Also, you have been provided with price and quantity data obtained from focus groups and have been asked to run a regression of revenue on price.

Hence, a linear functional form can properly be used to​ estimate quantity with price as the explanatory variable because the demand curve is linear.

Additionally, according to the law of demand, as the price of a particular product or service increases, there will be a decrease in the quantity that is being demanded by the consumers.

4 0
3 years ago
Roman loves corn bread. He buys corn meal and wheat flour in order to make corn bread. His recipe calls for two cups of corn mea
ale4655 [162]

Answer:

(B) U(c,f)=min{2c,f}

Explanation:

This is an example of Leontif utility function which states that the preferences of a consumer is to a constant ratio of quantities of two or more goods in his demand bundles and having an extra unit of a single good will not increase the utility of the consumer and will make the extra unit to waste. But having more units of all the goods in the demand bundle which maintain the constant ratio will increase the utility of the consumer.

A good example usually used in economics is that of a pair of shoe. Having one right and one left of a type of shoe gives a consumer utility at a constant ratio of 1:1, and increasing each leg by multiple of one at every point in time will increase the utility of the consumer, while increasing just only one makes the utility not to change. For instance, having only two left shoe will not give the consumer any utility and make both the left shoe useless.

In the question, the ratio of cups of corn meal, denoted by c, and cups of flour, denoted by f, is 2:1. This implies that to increase the utility of the consumer, c has to increase by a multiple of 2 at every point in time while f has to increase by one at the same point in time to maintain the constant ratio of 2:1. Increasing only c by 2 or only f by 1 will maintain the constant ratio and it will lead to a waste of the increased unit of the affected commodity.

Therefore, option (B) U(c,f)=min{2c,f} is the correct answer that gives a constant ratio of 2:1 = 2c:f.

I wish you the best.

7 0
3 years ago
A firm uses a continuous review (Q) inventory system. Weekly demand for a product is normally distributed with a mean of 120 uni
Sidana [21]

Answer: 90.32%

Explanation:

Weekly demand (d) = 120

Standard deviation = 10

Lead time (l) = 4

Reorder point = 506

The reorder point is calculated as:

506 = 120 × 4 + Z × 10 × ✓4

Solving for Z will give us 1.3

Then, we check this in the z table which will give us p = 0.9032

Therefore, the service level is 90.32%.

8 0
3 years ago
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